(a) A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly exercised the power.
(b) A person other than a beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise.
(c) A person who in good faith delivers assets to a trustee need not ensure their proper application.
(d) A person other than a beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee.
(e) Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.
Structure Code of Alabama
Title 19 - Fiduciaries and Trusts.
Chapter 3B - Alabama Uniform Trust Code.
Section 19-3B-101 - Short Title.
Section 19-3B-103 - Definitions.
Section 19-3B-104 - Knowledge.
Section 19-3B-105 - Default and Mandatory Rules.
Section 19-3B-106 - Common Law of Trusts; Principles of Equity.
Section 19-3B-107 - Governing Law.
Section 19-3B-108 - Principal Place of Administration.
Section 19-3B-109 - Methods and Waiver of Notice.
Section 19-3B-110 - Others Treated as Qualified Beneficiaries.
Section 19-3B-111 - Nonjudicial Settlement Agreements.
Section 19-3B-112 - Rules of Construction.
Section 19-3B-201 - Role of Court in Administration of Trust.
Section 19-3B-202 - Jurisdiction Over Trustee and Beneficiary.
Section 19-3B-203 - Subject Matter Jurisdiction.
Section 19-3B-205 - Judicial Accountings and Settlements.
Section 19-3B-301 - Representation: Basic Effect.
Section 19-3B-302 - Representation by Holder of Power of Appointment.
Section 19-3B-303 - Representation by Fiduciaries and Ancestors.
Section 19-3B-304 - Representation by Person Having Substantially Identical Interest.
Section 19-3B-305 - Appointment of Representative.
Section 19-3B-401 - Methods of Creating Trust.
Section 19-3B-402 - Requirements for Creation.
Section 19-3B-403 - Trusts Created in Other Jurisdictions.
Section 19-3B-404 - Trust Purposes.
Section 19-3B-405 - Charitable Purposes; Enforcement.
Section 19-3B-406 - Creation of Trust Induced by Fraud, Duress, or Undue Influence.
Section 19-3B-407 - Evidence of Oral Trust.
Section 19-3B-408 - Trust for Care of Animal.
Section 19-3B-409 - Noncharitable Trust Without Ascertainable Beneficiary.
Section 19-3B-410 - Modification or Termination of Trust; Proceedings for Approval or Disapproval.
Section 19-3B-411 - Modification or Termination of Noncharitable Irrevocable Trust by Consent.
Section 19-3B-414 - Modification or Termination of Uneconomic Trust.
Section 19-3B-415 - Reformation to Correct Mistakes.
Section 19-3B-416 - Modification to Achieve Settlor's Tax Objectives.
Section 19-3B-417 - Combination and Division of Trusts.
Section 19-3B-501 - Rights of Beneficiary's Creditor or Assignee.
Section 19-3B-502 - Spendthrift Provision.
Section 19-3B-503 - Exceptions to Spendthrift Provision.
Section 19-3B-504 - Discretionary Trusts; Effect of Standard.
Section 19-3B-505 - Creditor's Claim Against Settlor.
Section 19-3B-506 - Overdue Distribution.
Section 19-3B-507 - Personal Obligations of Trustee.
Section 19-3B-508 - Qualified Trusts Under the Internal Revenue Code.
Section 19-3B-601 - Capacity of Settlor of Revocable Trust.
Section 19-3B-602 - Revocation or Amendment of Revocable Trust.
Section 19-3B-603 - Settlor's Powers; Powers of Withdrawal.
Section 19-3B-701 - Accepting or Declining Trusteeship.
Section 19-3B-702 - Trustee's Bond.
Section 19-3B-703 - Co-Trustees.
Section 19-3B-704 - Vacancy in Trusteeship; Appointment of Successor.
Section 19-3B-705 - Resignation of Trustee.
Section 19-3B-706 - Removal of Trustee.
Section 19-3B-707 - Delivery of Property by Former Trustee.
Section 19-3B-708 - Compensation of Trustee.
Section 19-3B-709 - Reimbursement of Expenses.
Section 19-3B-801 - Duty to Administer Trust.
Section 19-3B-802 - Duty of Loyalty.
Section 19-3B-803 - Impartiality.
Section 19-3B-804 - Prudent Administration.
Section 19-3B-805 - Costs of Administration.
Section 19-3B-806 - Trustee's Skills.
Section 19-3B-807 - Delegation by Trustee.
Section 19-3B-808 - Powers to Direct.
Section 19-3B-809 - Control and Protection of Trust Property.
Section 19-3B-810 - Recordkeeping and Identification of Trust Property.
Section 19-3B-811 - Enforcement and Defense of Claims.
Section 19-3B-812 - Collecting Trust Property.
Section 19-3B-813 - Duty to Inform and Report.
Section 19-3B-814 - Discretionary Powers; Tax Savings.
Section 19-3B-815 - General Powers of Trustee.
Section 19-3B-816 - Specific Powers of Trustee.
Section 19-3B-817 - Distribution Upon Termination.
Section 19-3B-818 - Life Insurance Policies Held by Trustee.
Section 19-3B-901 - Prudent Investor Rule.
Section 19-3B-902 - Standard of Care; Portfolio Strategy; Risk and Return Objectives.
Section 19-3B-903 - Diversification.
Section 19-3B-904 - Duties at Inception of Trusteeship.
Section 19-3B-905 - Reviewing Compliance.
Section 19-3B-906 - Language Invoking Standard of Prudent Investor Rule.
Section 19-3B-1001 - Remedies for Breach of Trust.
Section 19-3B-1002 - Damages for Breach of Trust.
Section 19-3B-1003 - Damages in Absence of Breach.
Section 19-3B-1005 - Limitation of Action Against Trustee.
Section 19-3B-1006 - Reliance on Trust Instrument.
Section 19-3B-1007 - Event Affecting Administration or Distribution.
Section 19-3B-1008 - Exculpation of Trustee.
Section 19-3B-1009 - Beneficiary's Consent, Release, or Ratification.
Section 19-3B-1010 - Limitation on Personal Liability of Trustee.
Section 19-3B-1011 - Interest as General Partner.
Section 19-3B-1012 - Protection of Person Dealing With Trustee.
Section 19-3B-1013 - Certification of Trust.
Section 19-3B-1201 - Uniformity of Application and Construction.
Section 19-3B-1202 - Electronic Records and Signatures.
Section 19-3B-1203 - Severability Clause.
Section 19-3B-1204 - Application to Existing Relationships.
Section 19-3B-1301 - Trust Concerning Lands Required to Be in Writing.
Section 19-3B-1302 - Trust Void as to Creditors or Purchasers Without Notice.
Section 19-3B-1303 - Trust Estate Not Descendible Upon Death of Trustee.
Section 19-3B-1304 - Trusts for Employees or Self-Employed Persons.
Section 19-3B-1305 - Trusts Consisting of Insurance Policies or Proceeds.
Section 19-3B-1306 - Procedures for Release of Trustee From Duties.