Alabama HB207 amends the Alabama Uniform Trust Code to align with the Alabama Qualified Dispositions in Trust Act, limiting creditor claims and.

Alabama HB207 amends the Alabama Uniform Trust Code to limit the claims creditors can make against a trust, aligning with the Alabama Qualified Dispositions in Trust Act. It specifies that if a creditor does not present a claim within six months of the settlor's death, the trustee is not liable for any good faith distributions made before the claim is presented. The bill also clarifies that a beneficiary holding a withdrawal power is not considered a settlor if the released property value does not exceed certain federal safe harbor amounts.

Alabama HB207 amends the Alabama Uniform Trust Code to align with the Alabama Qualified Dispositions in Trust Act, limiting creditor claims and.

Alabama HB207 amends the Alabama Uniform Trust Code to limit the claims creditors can make against a trust, aligning with the Alabama Qualified Dispositions in Trust Act. It specifies that if a creditor does not present a claim within six months of the settlor's death, the trustee is not liable for any good faith distributions made before the claim is presented. The bill also clarifies that a beneficiary holding a withdrawal power is not considered a settlor if the released property value does not exceed certain federal safe harbor amounts.