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

HB 207 amends Alabama’s Uniform Trust Code to align creditor claim limits with the Alabama Qualified Dispositions in Trust Act. It specifically limits creditors’ access to trust assets for irrevocable trusts and clarifies when a beneficiary holding a withdrawal power is treated as the trust creator (only if the released property value exceeds IRS thresholds). The bill also allows trustees to reimburse trust creators for income taxes paid on trust assets without those reimbursements being subject to the creator’s creditors. These changes directly affect trust creators, beneficiaries with withdrawal powers, and trustees managing trust finances.