Alabama § 19-3A-105 - Express Unitrusts.
Full text of Alabama Code of Alabama § 19-3A-105 — Express Unitrusts., with citation guidance and answers to common questions.
§ 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 and net income of an express unitrust is the unitrust amount, but only if the unitrust amount is not less than three percent and not more than five percent of the net fair market value of the trust assets. If the unitrust amount is more than five percent of the net fair market value of the trust assets, the income and net income shall be five percent of the net fair market value of the trust assets, and the excess over five percent shall be considered to be principal of the trust.
(2) Expenses which would be deducted from income if the trust were not an express unitrust shall not be deducted from the unitrust amount.
(3) The trustee, from time to time, may determine the following:
a. The frequency of payment of the unitrust amount during the year;
b. Any adjustments to be made to the unitrust amount due to other payments from or contributions to the trust;
c. The valuation dates to use;
d. How nonliquid or hard to value assets shall be valued, how frequently to value them and whether to estimate their value;
e. Whether to omit from the calculations the value of trust property occupied, used, or possessed by a beneficiary; and
f. Any other matters necessary for the proper functioning of the unitrust that are not inconsistent with the governing instrument.
Frequently Asked Questions About Alabama § 19-3A-105
What does Code of Alabama § 19-3A-105 cover?
Section 19-3A-105 ("Express Unitrusts.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 19-3A-105?
A common citation format is "Code of Alabama § 19-3A-105" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 19-3A-105 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.