Alabama § 19-5-5 Division of Trust with More Than One Beneficiary or Class Thereof for Gst Purposes into Separate Share Trusts to Effectuate Allocation of Grantor’s, Decedent’s, or Surviving Spouse’s Gst Exemption

Alabama Statutes

§ 19-5-5 — Division of Trust with More Than One Beneficiary or Class Thereof for Gst Purposes into Separate Share Trusts to Effectuate Allocation of Grantor’s, Decedent’s, or Surviving Spouse’s Gst Exemption

Alabama § 19-5-5

Title 19Fiduciaries and Trusts

Ch. 5Preclusion or Minimization of Generation-Skipping Tax

This text of Alabama § 19-5-5 (Division of Trust with More Than One Beneficiary or Class Thereof for Gst Purposes into Separate Share Trusts to Effectuate Allocation of Grantor’s, Decedent’s, or Surviving Spouse’s Gst Exemption) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 19-5-5 (2026).

Text

When a grantor or decedent transfers property into a trust which has, or which pours into another trust which has, more than one beneficiary or class of beneficiaries for GST purposes, and when the grantor or fiduciary allocates the grantor’s or decedent’s GST exemption for the benefit of one or more, but less than all, beneficiaries or classes of beneficiaries of such trust, or when the surviving spouse of the grantor or decedent, or such surviving spouse’s fiduciary, allocates the surviving spouse’s GST exemption for the benefit of one or more, but less than all, beneficiaries or classes of beneficiaries of such trust, and when the instrument creating the trust does not specifically prohibit a fiduciary from dividing such trust into separate share trusts, a fiduciary shall divide such tr

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When a grantor or decedent transfers property into a trust which has, or which pours into another trust which has, more than one beneficiary or class of beneficiaries for GST purposes, and when the grantor or fiduciary allocates the grantor’s or decedent’s GST exemption for the benefit of one or more, but less than all, beneficiaries or classes of beneficiaries of such trust, or when the surviving spouse of the grantor or decedent, or such surviving spouse’s fiduciary, allocates the surviving spouse’s GST exemption for the benefit of one or more, but less than all, beneficiaries or classes of beneficiaries of such trust, and when the instrument creating the trust does not specifically prohibit a fiduciary from dividing such trust into separate share trusts, a fiduciary shall divide such trust into two or more separate share trusts, of equal or unequal value, in order to effectuate and carry out the allocation of the grantor’s or decedent’s GST exemption, or if applicable, the GST exemption of the surviving spouse of the grantor or decedent. Other terms and provisions of each such separate share trust shall, when taken together as a whole, be substantially identical to the original trust. In general, this section contemplates that a fiduciary will divide a single trust into two or more separate share trusts when such division may decrease or eliminate the amount of distributions from such single share trust that would otherwise be subject to the GST.