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 the dollar amount based on the Consumer Price Index (C.P.I.) starting January 1, 2024, ensuring that the threshold for termination is responsive to inflation.

Furthermore, the bill outlines the process for calculating any increases or decreases in the dollar amount based on the C.P.I., including rounding rules and the establishment of a reference base index for the year 2022. The State Treasurer is tasked with publishing a cumulative list of the adjusted dollar amounts annually. 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