Alabama Uniform Trust Code; amended to conform with Alabama Qualified Dispositions in Trust Act, limit property subject to creditors' claims
Enacted
Summary
The bill amends Alabama’s Uniform Trust Code so that creditors can only reach trust assets to the same extent as allowed under the Qualified Dispositions in Trust Act. It also defines when a holder of a withdrawal power is treated as the trust’s creator and permits trustees to reimburse the creator for income taxes without those payments being subject to creditor claims. The changes apply to all trusts beginning October 1, 2026.
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