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

Summary

The bill changes the state trust code so a trustee can reallocate receipts and payments between principal and income even if the trust document does not specifically grant that power. It requires trustees to weigh a list of factors and bars adjustments that would harm tax benefits, fixed payments, charitable allocations, or beneficiary rights. The amendment aligns Alabama with the Uniform Principal and Income Act and takes effect on October 1, 2026.

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