Title 19 — Title 19

The sheriff shall file, at the first session held after the first day of January of each court under whose processes he holds any money, the report required by this article. History: (Acts 1909, No. 133, p. 166; Code 1923, §10464; Code 1940, T. 58, §33.)

The judge of such court shall carefully examine said report and order the same recorded by the clerk of the court in a well-bound book, kept for that purpose, which book shall be open to the inspection of the public. History: (Acts 1909, No. 133, p. 166; Code 1923, §10462; Code 1…

The probate judge shall file such statement in his court within the first 10 days of January of each year and record the same in a book kept for that purpose, which book shall be open to the inspection of the public. History: (Acts 1909, No. 133, p. 166; Code 1923, §10463; Code 1…

The judges of courts of record in this state, at the first session of their courts held after January 1, shall enforce the provisions of this article and, if such report is not filed within the first day of said court, shall issue a mandatory order requiring the filing of said re…

(a) If at any time it appears to the court, or is made known to the court, that any balance has been in the hands of any officer for a period of five years and the same remains unclaimed, the court may make an order directing the same to be paid into the county treasury, and a se…

(a) Where by the terms of a will or trust instrument a fiduciary may or must satisfy a pecuniary gift thereunder by distributing or allocating property in kind according to the value thereof other than the value on the date of distribution or allocation, the fiduciary, in satisfy…

This chapter shall be known and may be cited as the “Alabama Principal and Income Act.” History: (Act 2000-675, p. 1343, §1.)

As used in this chapter, the following terms are defined as follows: (1) ACCOUNTING PERIOD. A calendar year unless another 12-month period is selected by a fiduciary. The term includes a portion of a calendar year or other 12- month period that begins when an income interest begi…

(a) In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of Article 2 and Article 3, a fiduciary: (1) Shall administer a trust or decedent’s estate in accordance with the terms of the trust or the will, even …

October 1, 2026.] AMENDED BY ACT 2026-502, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE. (a) If the terms of the trust expressly provide by specific reference to this section, then a trustee may have the power to adjust between principal and income to the extent the tr…

Except to the extent otherwise provided in the governing instrument, the following provisions shall apply to a trust which by its governing instrument requires distribution of a unitrust amount (whether payable in a single sum or in installments), such trust to be referred to as …

(a) Unless expressly prohibited by the governing instrument, a trustee may convert a trust into a unitrust as described in this section if all of the following apply: (1) The trustee has concluded that the conversion will enable the trustee to better carry out the intent of the s…

After the decedent’s death, in the case of a decedent’s estate, or after an income interest in a trust ends, the following rules apply: (a) If property is specifically given to a beneficiary by will or by trust, then the fiduciary of the decedent’s estate or of the terminating in…

(a) Each beneficiary described in Section 19-3A-201(d) is entitled to receive a portion of the net income equal to the beneficiary’s fractional interest in undistributed principal assets, using inventory values as of the appropriate distribution dates. (b) In determining a benefi…

(a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, then on the date an asset becomes subject to a trust or a successive incom…

or When Income Interest Begins. (a) A fiduciary shall allocate an income receipt or disbursement, other than one to which Section 19-3A-201(a) applies, to principal in the following instances: (1) In the case of a decedent’s estate, if its due date occurs before the date of a dec…

(a) For the purposes of this section, “undistributed income” means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to p…

(a) For purposes of this section, “entity” means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a fiduciary has an interest other than (1) a trust or decedent…

A fiduciary shall allocate to income an amount received as a distribution of income from a trust or a decedent’s estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such …

(a) If a fiduciary who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or other activity instead of accounting for it as part of the trust’s general accounting records, then the fiduc…

A fiduciary shall allocate to principal: (1) To the extent not allocated to income under this chapter, assets received from a transferor during the transferor’s lifetime, a decedent’s estate, a trust with a terminating income interest, or a payer under a contract naming the trust…

To the extent the fiduciary does not account for receipts from rental property pursuant to Section 19-3A-403, the fiduciary shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An am…

(a) An amount received as interest, whether determined at a fixed, variable, or floating rate, on a bond or an obligation to pay money to the fiduciary shall be allocated to income. (b) Except as provided for in subsection (c) and subsection (d), a fiduciary shall allocate to pri…

(a) Except as otherwise provided in subsection (b), a fiduciary shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its fiduciary is named as beneficiary, including a contract that insures the trust or its fiduciary against …

(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…

(a) In this section: (1) “Payment” means a payment that a fiduciary may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property transferred to the payer in exchange for future payments. The term includes a paymen…

(a) In this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right, and right to receive payments under …

(a) To the extent that a fiduciary accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the fiduciary shall allocate them as follows: (1) If received as nominal delay rental or nominal annual rent on a lease, a receipt shall be a…

(a) To the extent that a fiduciary accounts for receipts from the sale of timber and related products pursuant to this section, the fiduciary shall allocate the net receipts first to principal, based upon the volume of the timber at the time of transfer to the trust or decedent’s…

(a) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the fiduciary transfers from principal to income pursua…

(a) In this section, “derivative instrument” means a contract, a financial instrument, or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible or intangible asset or group…

(a) In this section, “asset-backed security” means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an asset that gives the owner the right to…

A trustee shall make the following disbursements from income to the extent that they are not disbursements to which Section 19-3A-201(c)(2) or Section 19-3A- 201(c)(3) applies: (a) All of the regular compensation of the trustee and of any person providing investment advisory or c…

(a) A trustee shall make the following disbursements from principal: (1) An amount, not to exceed fifty percent (50%), of the disbursements described in Section 19-3A-501(a) and Section 19-3A-501(b); (2) All of the trustee’s compensation calculated on principal as a fee for accep…

(a) In this section, “depreciation” means a reduction in value due to wear, tear, decay, corrosion, or gradual obsolescence of a fixed asset having a useful life of more than one year. (b) A fiduciary may transfer from income to principal a reasonable amount of the net cash recei…

(a) If a fiduciary makes or expects to make a principal disbursement described in this section, then the fiduciary may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse principal or to provide a reserve for future principal dis…

(a) A tax required to be paid by a fiduciary based on receipts allocated to income shall be paid from income. (b) A tax required to be paid by a fiduciary based on receipts allocated to principal shall be paid from principal, even if the tax is called an income tax by the taxing …

(a) A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from any of the following: (1) Elections and decisions, other than those described i…

In applying and construing this uniform act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. History: (Act 2000-675, p. 1343, §1.)

If any provision of this chapter or its application to any person or circumstance is held invalid, then the invalidity does not affect other provisions or applications of this chapter that can be given effect without the invalid provision or application, and to this end the provi…

This chapter shall become effective on January 1, 2001, and shall apply to every trust and decedent’s estate created on or after such date. History: (Act 2000-675, p. 1343, §1.)

This chapter shall become applicable on January 1, 2001, to every trust and decedent’s estate already in existence on January 1, 2001, and to every testamentary trust to be created on or after January 1, 2001, from a decedent’s estate that is already in existence on January 1, 20…

A fiduciary may at any time obtain the written consent of all of the current income beneficiaries and presumptive remainder beneficiaries of a trust or decedent’s estate as to the fiduciary’s exercise of any discretion granted under this chapter, including the application of the …

This chapter shall govern the ascertainment of income and principal, and the apportionment of receipts and disbursements between tenant and remainderman, in all cases where a principal has been established with or, unless otherwise stated in this chapter, without the interpositio…

Section 19-3A-409, as amended by Act 2012-550, applies to a trust described in Section 19-3A-409(d) on and after the following dates: (1) If the trust is not funded as of January 1, 2013, the date of the decedent’s death. (2) If the trust is initially funded in the calendar year …

The provisions of the Alabama Uniform Trust Code apply to the Alabama Principal and Income Act, except to the extent the provisions are inconsistent with the provisions of this chapter. History: (Act 2013-336, p. 1179, §2.)

(a) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. (b) To remedy a breach of trust that has occurred or may occur, the court may: (1) compel the trustee to perform the trustee’s duties; (2) enjoin the trustee from committing a breach of…

(a) A trustee who commits a breach of trust is liable to the beneficiaries affected for: (1) the greater of: (i) the amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or (ii) the profit the…

(a) A trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration of the trust, even absent a breach of trust. (b) Absent a breach of trust, a trustee is not liable to a beneficiary for a loss or depreciation in the value o…