The bill amends Section 19-3B-414 of the Alabama Uniform Trust Code to update the provisions regarding the modification or termination of uneconomic trusts. The key changes include raising the threshold for a trust's total value from less than $50,000 to less than $100,000, allowing trustees to terminate trusts that do not justify the cost of administration. Additionally, the bill introduces a new subsection (e) that establishes a mechanism for adjusting this dollar amount based on the Consumer Price Index (C.P.I.) starting January 1, 2024. This adjustment will occur annually, with the State Treasurer responsible for publishing the updated amounts.

Furthermore, the bill specifies that the C.P.I. used for these adjustments will be the Consumer Price Index for All Urban Consumers (CPI-U) as reported by the Bureau of Labor Statistics. It also outlines how any increases or decreases will be calculated and rounded to the nearest hundred dollars. The act is set to take effect immediately upon passage and approval by the Governor.

Statutes affected:
Introduced: 19-3B-414
Enrolled: 19-3B-414