HB474 Summary

• Defines "report" under Alabama Uniform Trust Code to include account statements or other written disclosures from trustee to beneficiary for purposes of the two-year statute of limitations on breach of trust claims.

• Establishes a deadline for beneficiaries to commence breach of trust proceedings within two years after receiving a report that adequately discloses the potential claim, or within two years of trustee removal/resignation, beneficiary's interest termination, or trust termination.

• Creates a settlement procedure allowing trustees to obtain release from duties when trust terminates, trustee resigns or is removed, or for interim accounting periods by providing qualified beneficiaries with account statements, trust accounting for prior two years, fee information, and 45-day notice period.

• Requires beneficiaries to submit written objections within 45 days of receiving trustee notice; failure to object bars future claims against the trustee to the same extent as a final court order approving accounts.

• Permits disputed matters to be resolved through court proceedings or nonjudicial settlement agreements, with related expenses charged to the trust; effective January 1, 2022.