TRUST LIMITATION ON DECANTING.
(a) An authorized fiduciary may not exercise the decanting power to the extent the first-trust instrument expressly prohibits exercise of:
(1) the decanting power; or
(2) a power granted by state law to the fiduciary to distribute part or all of the principal of the trust to another trust or to modify the trust.
(b) Exercise of the decanting power is subject to any restriction in the first-trust instrument that expressly applies to exercise of:
(1) the decanting power; or
(2) a power granted by state law to a fiduciary to distribute part or all of the principal of the trust to another trust or to modify the trust.
(c) A general prohibition of the amendment or revocation of a first trust, a spendthrift clause, or a clause restraining the voluntary or involuntary transfer of a beneficiary's interest does not preclude exercise of the decanting power.
(d) Subject to subsections (a) and (b), an authorized fiduciary may exercise the decanting power under this chapter even if the first-trust instrument permits the authorized fiduciary or another person to modify the first-trust instrument or to distribute part or all of the principal of the first trust to another trust.
(e) If a first-trust instrument contains an express prohibition described in subsection (a) or an express restriction described in subsection (b), the provision must be included in the second-trust instrument.
Structure Code of Alabama
Title 19 - Fiduciaries and Trusts.
Chapter 3D - Alabama Uniform Trust Decanting Act.
Section 19-3D-1 - Short Title.
Section 19-3D-2 - Definitions.
Section 19-3D-4 - Fiduciary Duty.
Section 19-3D-5 - Application; Governing Law.
Section 19-3D-6 - Reasonable Reliance.
Section 19-3D-7 - Notice; Exercise of Decanting Power.
Section 19-3D-8 - Representation.
Section 19-3D-9 - Court Involvement.
Section 19-3D-10 - Formalities.
Section 19-3D-11 - Decanting Power Under Expanded Distributive Dicretion.
Section 19-3D-12 - Decanting Power Under Limited Distributive Discretion.
Section 19-3D-13 - Trust for Beneficiary With Disability.
Section 19-3D-14 - Protection of Charitable Interest.
Section 19-3D-15 - Trust Limitation on Decanting.
Section 19-3D-16 - Change in Compensation.
Section 19-3D-17 - Relief From Liability and Indemnification.
Section 19-3D-18 - Removal or Replacement of Authorized Fiduciary.
Section 19-3D-19 - Tax-Related Limitations.
Section 19-3D-20 - Duration of Second Trust.
Section 19-3D-21 - Need to Distribute Not Required.
Section 19-3D-22 - Saving Provision.
Section 19-3D-23 - Trust for Care of Animal.
Section 19-3D-24 - Terms of Second Trust.
Section 19-3D-26 - Later-Discovered Property.
Section 19-3D-27 - Obligations.
Section 19-3D-28 - Uniformity of Application and Construction.
Section 19-3D-29 - Relation to Electronic Signatures in Global and National Commerce Act.