Section 19-3A-101 – Short Title.

Section 19-3A-101 Short title. This chapter shall be known and may be cited as the “Alabama Principal and Income Act.” (Act 2000-675, p. 1343, §1.)

Section 19-3A-102 – Definitions.

Section 19-3A-102 Definitions. 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 begins or ends when an income […]

Section 19-3A-103 – Fiduciary Duties; General Principles.

Section 19-3A-103 Fiduciary duties; general principles. (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 […]

Section 19-3A-104 – Trustee’s Power to Adjust.

Section 19-3A-104 Trustee’s power to adjust. (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 trustee considers necessary if (1) the trustee invests and manages trust assets as a prudent investor; (2) […]

Section 19-3A-105 – Express Unitrusts.

Section 19-3A-105 Express unitrusts. 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 an “express unitrust”: (1) The income […]

Section 19-3A-106 – Conversion to Unitrust.

Section 19-3A-106 Conversion to unitrust. (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 settlor or […]