Revocable Living Trusts in Alabama

Alabama has adopted the Uniform Trust Code (the Alabama Uniform Trust Code). A trust is created when the settlor has capacity, shows an intent to create it, names a definite beneficiary, gives the trustee duties, and is not both the sole trustee and sole beneficiary. For trusts signed on or after January 1, 2007, a trust is revocable unless its terms expressly say it is irrevocable; a written revocable trust can be amended or revoked only by a later written instrument delivered to the trustee (or the method stated in the trust). Property must be retitled into the trust's name (funded) to pass under the trust; assets held by the trustee are distributed under the trust terms without probate, while assets left in the person's own name may still need probate.

Non-probate options in Alabama include: payable-on-death (POD) and joint accounts with survivorship, which pass to the surviving party or beneficiary and are not subject to estate administration (Ala. Code §§ 5-24-12, 5-24-14); transfer-on-death registration of securities and brokerage accounts under the Uniform TOD Security Registration Act (Ala. Code § 8-6-140 and following); vehicles titled to co-owners joined by "or," where the survivor becomes sole owner; property held in a funded revocable trust (Ala. Code § 19-3B-602); and summary distribution for small estates (Ala. Code § 43-2-692). Alabama has no transfer-on-death deed for real estate.