Loading chat...

AL HB206

Bill

Official Source

Status

Introduced

1/14/2026

Primary Sponsor

Timothy Wadsworth

Click for details

Origin

House of Representatives

2026 Regular Session

AI Summary

  • Trustees may adjust trust receipts and disbursements between principal and income without requiring explicit authorization in the trust instrument, removing the current requirement for specific reference to the statute
  • Aligns Alabama law with the Uniform Principal and Income Act by granting trustees default adjustment authority when managing assets as a prudent investor
  • Trust terms that limit adjustment power will only deny the trustee this authority if the trust clearly intends to prohibit adjustments
  • Removes the current provision allowing trustees or beneficiaries to opt into the adjustment power through court approval or written consent of beneficiaries
  • Effective date: October 1, 2026

Legislative Description

Trusts; amend Alabama Principal and Income Act, permit trustee to adjust between principal and income

Property & Estates

Last Action

Read for the Second Time and placed on the Calendar

1/29/2026

Committee Referrals

Financial Services1/14/2026

Full Bill Text

No bill text available