HB 206·AL·house
Trusts; amend Alabama Principal and Income Act, permit trustee to adjust between principal and income
Reported by CommitteeFiled Jan 14, 2026
Sponsor: Tim Wadsworth (R)
Latest Action
Read for the Second Time and placed on the Calendar (Financial Services)
Jan 29, 2026
Summary
The bill changes Alabama law so a trustee can shift money between a trust’s principal and its income even if the trust document does not specifically grant that power. It adds a list of situations where such adjustments are still prohibited, such as protecting spousal income rights or tax benefits. The change aligns state law with the Uniform Principal and Income Act and takes effect on Oct. 1, 2026.
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