Updated December 05, 2021
The Alabama irrevocable trust is a document that creates a separate entity to hold assets and property in order to bypass the probate process after the Grantor’s death. This type of trust has many other advantages such as creditors not being able to make claims against it. Although, after it has been created and property has been placed in the trust the Grantor is no longer considered the owner of the items placed in it. It will be in the possession of the Trustee who is to act as the fiduciary to the Beneficiaries mentioned with the trust not being able to be amended without approval by the court.
Irrevocable Trust Laws – § 19-3B-411
Revocable Trust – Allows the Grantor to amend or void the trust at any time. However, the trust does not bypass the probate process after the Grantor dies along with receiving other tax treatment.
How to Amend or Terminate
Under § 19-3B-411 a court in Alabama may allow for the amendment or termination of an irrevocable trust under the following circumstances:
- *If the Grantor and all Beneficiaries agree to the amendment or termination;
- *If all the Beneficiaries agree to the amendment or termination as the continuance of the trust has no material purpose;
- If a spendthrift provision does not constitute a material purpose of the trust (*this only applies to trusts created after January 1, 2007);
*If the trust is terminated the Trustee shall distribute the property as agreed upon by the Beneficiaries. If all the Beneficiaries cannot agree on how the property is to be distributed the court will “adequately protect” the Beneficiaries that disagree with the amendment or termination.
How to Write
Step 1 – Download in Adobe PDF, Microsoft Word (.docx), or Open Document text (.odt).
Step 2 –