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AL SB178
Bill
Status
Introduced
1/20/2026
Primary Sponsor
Will Barfoot
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AI Summary
- Amends Section 19-3A-104 of the Code of Alabama to allow trustees to adjust trust receipts and disbursements between principal and income without requiring explicit authorization in the trust instrument
- Aligns Alabama law with the Uniform Principal and Income Act by removing the current requirement that trust terms must specifically reference and grant this adjustment power
- Preserves existing restrictions prohibiting adjustments that would affect marital deductions, gift tax exclusions, fixed annuities, charitable set-asides, or create adverse tax consequences
- Maintains protections preventing trustees who are beneficiaries or who would benefit from adjustments from exercising this power
- 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
2/25/2026
Committee Referrals
Judiciary1/20/2026
Full Bill Text
No bill text available