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AlabamaSB1792026 Regular SessionSenate

Alabama Uniform Trust Code; amended to conform with Alabama Qualified Dispositions in Trust Act, limit property subject to creditors' claims

Sponsored By: Will Barfoot (Republican)

Enacted

Property & Estates

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Limits on creditors reaching trust assets

Beginning October 1, 2026, creditors or assignees of an irrevocable trust’s creator generally can reach only the maximum available for that creator’s benefit. The Alabama Qualified Dispositions in Trust Act exception applies; with multiple creators, claims reach only the share tied to that creator’s contribution. A person with an active withdrawal power counts as a trust creator only for property covered by that power. An irrevocable trust beneficiary does not count as a creator merely because a withdrawal power expires. Becoming a beneficiary through someone else’s power to choose recipients does not create that status, even for a former creator.

Trust owners can get tax reimbursements

Beginning October 1, 2026, trustees can choose to use any portion of trust property to reimburse income taxes paid or owed. This covers taxes on trust income or principal included in the personal income of the trust’s creator or tax owner. The trustee must be neither related nor subordinated to that person under federal tax law, 26 U.S.C. §672(c). Reimbursement is entirely the trustee’s choice, not a required payment. For irrevocable trusts, authorized reimbursements to the creator—and authority to make them—do not increase the amount creditors can reach.

Sponsors & Cosponsors

Sponsor

  • Will Barfoot

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 255 • No: 0

House vote • 4/8/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 1265

Yes: 102 • No: 0

House vote • 4/8/2026

Third Reading in Second House

Yes: 99 • No: 0 • Other: 1

Senate vote • 3/17/2026

Motion to Read a Third Time and Pass - Adopted Roll Call 932

Yes: 27 • No: 0

Senate vote • 3/17/2026

Third Reading in House of Origin

Yes: 27 • No: 0

Actions Timeline

  1. Enacted

    4/17/2026Senate

  2. Third Reading in Second House

    4/8/2026House

  3. Motion to Read a Third Time and Pass - Adopted Roll Call 1265

    4/8/2026House

  4. Ready to Enroll

    4/8/2026Senate

  5. Enrolled

    4/8/2026Senate

  6. Delivered to Governor

    4/8/2026Senate

  7. Signature Requested

    4/8/2026House

  8. Reported Out of Committee Second House

    4/1/2026House

  9. Read for the Second Time and placed on the Calendar

    4/1/2026House

  10. Read for the first time and referred to the House Committee on Judiciary

    3/19/2026House

  11. Pending Committee Action in Second House

    3/19/2026House

  12. Third Reading in House of Origin

    3/17/2026Senate

  13. Motion to Read a Third Time and Pass - Adopted Roll Call 932

    3/17/2026Senate

  14. Reported Out of Committee House of Origin

    2/25/2026Senate

  15. Read for the Second Time and placed on the Calendar

    2/25/2026Senate

  16. Read for the first time and referred to the Senate Committee on Judiciary

    1/20/2026Senate

  17. Pending Committee Action in House of Origin

    1/20/2026Senate

Bill Text

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