HB 196 Summary

• Amends Sections 19-3D-7 and 19-3D-9 of the Alabama Uniform Trust Decanting Act to clarify that failure to receive notice does not extend the six-month deadline for challenging a decanting power exercise if the fiduciary acted with reasonable diligence in providing notice.

• An authorized fiduciary may exercise decanting power without consent or court approval after giving 60 days' notice in writing to specified parties including settlors, beneficiaries, power of appointment holders, and fiduciaries.

• Parties entitled to notice or beneficiaries may challenge a decanting power exercise within six months of notice being given by alleging non-compliance with law, abuse of discretion, or breach of fiduciary duty.

• The six-month challenge period is not extended by failure to actually receive notice if the authorized fiduciary demonstrated reasonable care or reasonable diligence in attempting to comply with notice requirements.

• The act becomes effective on the first day of the third month following passage and approval by the Governor.