Alabama Uniform Trust Code; amended to conform with Alabama Qualified Dispositions in Trust Act, limit property subject to creditors' claims

Summary

The bill changes Alabama’s Uniform Trust Code so that creditors of a person who creates an irrevocable trust can only claim the amount the trust can actually distribute to that person, matching the limits in the Qualified Dispositions in Trust Act. It also defines when a holder of a withdrawal power is treated as the trust’s creator and lets trustees reimburse creators for income taxes without those reimbursements being subject to creditor claims. The changes aim to protect trust assets and clarify tax‑related distributions.

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