Understanding the Revocable Living Trust Under the Alabama Uniform Trust Code

A revocable living trust is one of the most effective ways for Alabama families to pass property to loved ones without the delays, costs, and public notice required by probate. Alabama has adopted the Alabama Uniform Trust Code (UTC), which provides the statutory framework for creating, managing, and administering trusts in the state. One of the most frequent questions I answer is whether a revocable living trust makes sense for a client's estate plan.

A revocable living (or inter vivos) trust is a written legal instrument that holds title to your assets during your lifetime. You create it, you control it, and you can change or revoke it at any time while you have capacity. Under the Alabama UTC, a trust created on or after January 1, 2007 is presumed revocable unless the terms expressly state otherwise. A trust can hold real estate and personal property in the trust's name during and after the settlor's lifetime. The settlor, the person creating the trust, cannot be the sole trustee and beneficiary to the trust.

Because the trust is revocable, the settlor retains control and can amend or revoke the trust. If you become incapacitated, your successor trustee can manage trust assets without court involvement, following the purpose and directions of the trust.

Flexibility and privacy are two main benefits of creating a revocable living trust and is useful for families wishing to avoid probate. Alabama law does not recognize transfer-on-death deeds or Ladybird deeds. You may deed real estate, including your home, into the trust. When you die with a trust, your successor trustee can step in immediately to carry out your estate plan.

For more information on a revocable living trust under the Alabama UTC, please contact Attorney David Trice.