(a) If, upon petition, the court finds that the settlor and all beneficiaries consent to the modification or termination of an irrevocable trust, the court shall enter an order approving the modification or termination even if the modification or termination is inconsistent with a material purpose of the trust. A settlor's power to consent to a trust's modification or termination may be exercised by an agent under a power of attorney only to the extent expressly authorized by the power of attorney or the terms of the trust; by the settlor's conservator with the approval of the court supervising the conservatorship if an agent is not so authorized; or by the settlor's guardian with the approval of the court supervising the guardianship if an agent is not so authorized and a conservator has not been appointed.
(b) A noncharitable irrevocable trust may be terminated upon consent of all of the beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust. A noncharitable irrevocable trust may be modified upon consent of all of the beneficiaries if the court concludes that modification is not inconsistent with a material purpose of the trust.
(c) A spendthrift provision in the terms of the trust is not presumed to constitute a material purpose of the trust. This subsection applies only to irrevocable trusts created on or after January 1, 2007, and to revocable trusts which become irrevocable on or after January 1, 2007.
(d) Upon termination of a trust under subsection (a) or (b), the trustee shall distribute the trust property as agreed by the beneficiaries.
(e) If not all of the beneficiaries consent to a proposed modification or termination of the trust under subsection (a) or (b), then the modification or termination may be approved by the court if the court is satisfied that:
(1) if all of the beneficiaries had consented, the trust could have been modified or terminated under this section; and
(2) the interests of a beneficiary who does not consent will be adequately protected.
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.