(a) If a fiduciary determines that an allocation between principal and income required by Section 19-3A-409, Section 19-3A-410, Section 19-3A-411, Section 19-3A-412, or Section 19-3A-415 is insubstantial, then the fiduciary may allocate the entire amount to principal, unless one of the circumstances described in Section 19-3A-104(c) applies to the allocation. This power may be exercised by a co-trustee in the circumstances described in Section 19-3A-104(d) and may be released for the reasons and in the manner described in Section 19-3A-104(e). For purposes of this subsection, the circumstances set forth in Section 19-3A-104(c), Section 19-3A-104(d), and Section 19-3A-104(e) shall be applied whether or not Section 19-3A-104 is otherwise applicable to the trust.
(b) Nothing in this section imposes a duty on the fiduciary to make an allocation pursuant to this section, and the fiduciary is not liable for failure to make an allocation pursuant to this section.
Structure Code of Alabama
Title 19 - Fiduciaries and Trusts.
Chapter 3A - Alabama Principal and Income Act.
Article 4 - Allocation of Receipts During Administration.
Section 19-3A-401 - Character of Receipts.
Section 19-3A-402 - Distributions From Trust or Decedent's Estate.
Section 19-3A-403 - Business and Other Activities Conducted by Fiduciary.
Section 19-3A-404 - Principal Receipts.
Section 19-3A-405 - Rental Property.
Section 19-3A-406 - Bonds and Other Obligations.
Section 19-3A-407 - Insurance Policies and Similar Contracts.
Section 19-3A-408 - Insubstantial Allocations Not Required.
Section 19-3A-409 - Deferred Compensation, Annuities, and Similar Payments.
Section 19-3A-410 - Liquidating Assets.
Section 19-3A-411 - Minerals, Water, and Other Natural Resources.
Section 19-3A-413 - Property Not Productive of Income.