This bill, relating to the Alabama Uniform Trust Code, amends Section 19-3B-414 of the Code of Alabama 1975. The amendment allows the trustee of a trust with a total value less than $100,000 to terminate the trust if the trustee determines that the value of the trust property is insufficient to justify the cost of administration. The court may also modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration. Upon termination of a trust, the trustee must distribute the trust property in a manner consistent with the purposes of the trust. The amendment also establishes that the dollar amount for termination of a trust will apply to any trust consisting of trust property during the 2023 calendar year. Beginning January 1, 2024, the dollar amount will be increased or decreased based on the Consumer Price Index (C.P.I.) for the previous calendar year. The State Treasurer will publish a cumulative list of the dollar amounts effective for value determination of a trust each year.

Overall, this bill provides provisions for the modification or termination of an uneconomic trust and establishes guidelines for determining the dollar amount for termination of a trust based on the Consumer Price Index.

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