Article 1 Definitions and Fiduciary Duties 19-3A-101 – 19-3A-106
Article 2 Decedent’s Estate or Terminating Income Interest 19-3A-201 – 19-3A-202
Article 3 Apportionment at Beginning and End of Income Interest 19-3A-301 – 19-3A-303
Article 4 Allocation of Receipts During Administration 19-3A-401 – 19-3A-414
Article 5 Allocation of Disbursements During Administration of Trust or Decendent’s Estate 19-3A-501 – 19-3A-506
Article 6 Miscellaneous Provisions 19-3A-601 – 19-3A-608

Terms Used In Alabama Code > Title 19 > Chapter 3A - Alabama Principal and Income Act

  • ACCOUNTING PERIOD: A calendar year unless another 12-month period is selected by a fiduciary. See Alabama Code 19-3A-102
  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
  • Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
  • Appellate: About appeals; an appellate court has the power to review the judgement of another lower court or tribunal.
  • applicant: A natural person who files a written application with the governing body of any county or municipality or public corporation or cooperative in accordance with the provisions of Section 11-89-3. See Alabama Code 11-89-1
  • Appropriation: The provision of funds, through an annual appropriations act or a permanent law, for federal agencies to make payments out of the Treasury for specified purposes. The formal federal spending process consists of two sequential steps: authorization
  • Arraignment: A proceeding in which an individual who is accused of committing a crime is brought into court, told of the charges, and asked to plead guilty or not guilty.
  • Arrest: Taking physical custody of a person by lawful authority.
  • authority: The public corporation organized pursuant to the provisions of this chapter. See Alabama Code 33-15-1
  • authority: The public corporation organized pursuant to the provisions of this chapter. See Alabama Code 33-16-1
  • authority: The public corporation organized pursuant to the provisions of this chapter. See Alabama Code 33-17-1
  • AUTHORIZING RESOLUTION: A resolution, adopted by a governing body in accordance with the provisions of Section 11-89-3, that authorizes the incorporation of a district. See Alabama Code 11-89-1
  • AUTHORIZING SUBDIVISION: Any county or municipality or public corporation or cooperative the governing body of which shall have adopted an authorizing resolution. See Alabama Code 11-89-1
  • BE CALLED OR ORDERED BY THE GOVERNOR: To be called or ordered into active military service under 32 U. See Alabama Code 31-12-1
  • Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
  • beneficiary: Includes, in the case of a decedent's estate, an heir, legatee, and devisee and, in the case of a trust, an income beneficiary and a remainder beneficiary. See Alabama Code 19-3A-102
  • board: The board of directors of a district. See Alabama Code 11-89-1
  • board: The board of directors of the authority. See Alabama Code 33-15-1
  • board: The board of directors of the authority. See Alabama Code 33-16-1
  • board: The board of directors of the authority. See Alabama Code 33-17-1
  • board: The Alabama Board of Agriculture and Industries. See Alabama Code 8-17-80
  • bonds: Bonds, notes and certificates representing an obligation to pay money. See Alabama Code 11-89-1
  • bonds: Such term shall include bonds and notes. See Alabama Code 33-15-1
  • bonds: The bonds issued under the provisions of this chapter. See Alabama Code 33-16-1
  • bonds: The bonds issued under the provisions of this chapter. See Alabama Code 33-17-1
  • brand: The trade name or other designation under which a particular petroleum product is sold, offered for sale, or otherwise identified. See Alabama Code 8-17-80
  • Charity: An agency, institution, or organization in existence and operating for the benefit of an indefinite number of persons and conducted for educational, religious, scientific, medical, or other beneficent purposes.
  • circuit: means judicial circuit. See Alabama Code 1-1-1
  • Clerk of court: An officer appointed by the court to work with the chief judge in overseeing the court's administration, especially to assist in managing the flow of cases through the court and to maintain court records.
  • commission: The Alabama First Responder Wireless Commission. See Alabama Code 31-9C-1
  • commissioner: The Commissioner of Agriculture and Industries. See Alabama Code 2-1-1
  • commissioner: The Alabama Commissioner of Agriculture and Industries. See Alabama Code 8-17-80
  • Common law: The legal system that originated in England and is now in use in the United States. It is based on judicial decisions rather than legislative action.
  • CONCISE LEGAL DESCRIPTION: A reasonably concise description of a particular geographic area which may be by metes and bounds or by reference to government surveys, recorded maps and plats, municipal, county or state boundary lines, well-defined landmarks and other monuments, or any combination of the foregoing. See Alabama Code 11-89-1
  • Contract: A legal written agreement that becomes binding when signed.
  • Conviction: A judgement of guilt against a criminal defendant.
  • cooperative: Any corporation organized under Article 9 (commencing with Section 10-4-190) of Chapter 4 of Title 10, or any successor thereto, to render water service or sewer service. See Alabama Code 11-89-1
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Counterclaim: A claim that a defendant makes against a plaintiff.
  • county: Any county in the state. See Alabama Code 11-89-1
  • county: A county in the state. See Alabama Code 33-15-1
  • county: A county in the state. See Alabama Code 33-16-1
  • county: A county in the state. See Alabama Code 33-17-1
  • Decedent: A deceased person.
  • Deed: The legal instrument used to transfer title in real property from one person to another.
  • Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
  • Dependent: A person dependent for support upon another.
  • Devise: To gift property by will.
  • director: A member of the board of directors of the district. See Alabama Code 11-89-1
  • director: A member of the board of directors of the authority. See Alabama Code 33-16-1
  • director: A member of the board of directors of the authority. See Alabama Code 33-17-1
  • Dismissal: The dropping of a case by the judge without further consideration or hearing. Source:
  • district: A public corporation organized pursuant to the provisions of this chapter. See Alabama Code 11-89-1
  • Docket: A log containing brief entries of court proceedings.
  • Donor: The person who makes a gift.
  • employee: Except as provided in Sections 31-12-5, 31-12-6, 31-12-7, and 31-12-8, any person employed by a public or private employer. See Alabama Code 31-12-1
  • Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Ex officio: Literally, by virtue of one's office.
  • Executor: A male person named in a will to carry out the decedent
  • Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
  • FEDERALLY FUNDED DUTY OTHER THAN TRAINING: Any duty performed in an operational role for homeland security in accordance with Title 32 U. See Alabama Code 31-12-1
  • Fee simple: Absolute title to property with no limitations or restrictions regarding the person who may inherit it.
  • Fiduciary: A trustee, executor, or administrator.
  • fiduciary: A personal representative or a trustee. See Alabama Code 19-3A-102
  • FIRE PROTECTION FACILITY: Land, plants, systems, facilities, buildings, fire engines, fire hydrants, ladders, equipment, hoses, alarm apparatus, chemicals, uniforms, supplies or any combination of any thereof used or useful or capable of future use in furnishing fire protection service and all other property deemed necessary or desirable by the district for use in furnishing fire protection service. See Alabama Code 11-89-1
  • FIRE PROTECTION SERVICE: All services involved in protecting property and life from fires, including, but not limited to, discovering, ascertaining, extinguishing, preventing the spread of or fighting fires or inspecting property for fire hazards or any part or combination thereof. See Alabama Code 11-89-1
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • FLOOD CONTROL PROJECT: The project for the construction and maintenance of improvements in the channels of tributary streams of the Tombigbee River in order to prevent or abate the flooding of such streams, as authorized by the Flood Control Act of 1958, 72 Statutes at Large 297, 85th Congress, 2nd Session (1958), in accordance with House Document No. See Alabama Code 33-17-1
  • following: means next after. See Alabama Code 1-1-1
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Fraud: Intentional deception resulting in injury to another.
  • fund: The First Responder Wireless Commission Fund. See Alabama Code 31-9C-1
  • Gift: A voluntary transfer or conveyance of property without consideration, or for less than full and adequate consideration based on fair market value.
  • GOVERNING BODY: With respect to a county, its county commission, and, with respect to a municipality, its city or town council, board of commissioners or other like governing body and, with respect to a public corporation or a cooperative, its board of directors. See Alabama Code 11-89-1
  • GOVERNING BODY: The county commission of a county. See Alabama Code 33-15-1
  • Impeachment: (1) The process of calling something into question, as in "impeaching the testimony of a witness." (2) The constitutional process whereby the House of Representatives may "impeach" (accuse of misconduct) high officers of the federal government for trial in the Senate.
  • income: Money or property that a fiduciary receives as current return from a principal asset. See Alabama Code 19-3A-102
  • INCOME BENEFICIARY: A person to whom net income of a trust is or may be payable. See Alabama Code 19-3A-102
  • INCOME INTEREST: The right of an income beneficiary to receive all or part of net income, whether the terms of the trust require it to be distributed or authorize it to be distributed in the trustee's discretion. See Alabama Code 19-3A-102
  • incorporators: The persons forming a public corporation organized pursuant to the provisions of this chapter. See Alabama Code 11-89-1
  • Indictment: The formal charge issued by a grand jury stating that there is enough evidence that the defendant committed the crime to justify having a trial; it is used primarily for felonies.
  • Intangible property: Property that has no intrinsic value, but is merely the evidence of value such as stock certificates, bonds, and promissory notes.
  • Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Legatee: A beneficiary of a decedent
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • LUBRICATING OIL: Those products of petroleum that are commonly used in lubricating or oiling engines and any devices or substitutes for such products of petroleum. See Alabama Code 8-17-80
  • MANDATORY INCOME INTEREST: The right of an income beneficiary to receive net income that the terms of the trust require the fiduciary to distribute. See Alabama Code 19-3A-102
  • Marital deduction: The deduction(s) that can be taken in the determination of gift and estate tax liabilities because of the existence of a marriage or marital relationship.
  • month: means a calendar month. See Alabama Code 1-1-1
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • motor vehicle: as used in this division , shall include all vehicles propelled by any power other than muscular power. See Alabama Code 8-17-150
  • municipality: An incorporated city or town of the state. See Alabama Code 11-89-1
  • municipality: An incorporated city or town of the state. See Alabama Code 33-15-1
  • municipality: An incorporated city or town of the state. See Alabama Code 33-16-1
  • municipality: An incorporated city or town of the state. See Alabama Code 33-17-1
  • NET INCOME: The total receipts allocated to income during an accounting period minus the disbursements made from income during the period, plus or minus transfers under this chapter to or from income during the period. See Alabama Code 19-3A-102
  • NEW TERRITORY: Any territory added, by amendment to the certificate of incorporation of a district, to the area or areas in which that district is authorized to render water service, fire protection service, sewer service or any thereof. See Alabama Code 11-89-1
  • Oath: A promise to tell the truth.
  • oath: includes affirmation. See Alabama Code 1-1-1
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Oversight: Committee review of the activities of a Federal agency or program.
  • Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
  • person: Unless limited to a natural person by the context in which it is used, such term includes a public or private corporation, a municipality, a county, a cooperative, or an agency, department or instrumentality of the state or of a county or municipality or cooperative. See Alabama Code 11-89-1
  • person: Unless limited to a natural person by the context in which it is used, such term includes a public or private corporation, a municipality, a county, or an agency, department or instrumentality of a county or municipality, of one or more of the several states or of the United States of America. See Alabama Code 33-15-1
  • person: Unless limited to a natural person by the context in which it is used, such term includes a public or private corporation organized under the laws of Alabama or of another state, a municipality, a county, or an agency, department or instrumentality of a county or municipality, of one or more of the several states, or of the United States. See Alabama Code 33-16-1
  • person: Unless limited to a natural person by the context in which it is used, such term includes a public or private corporation organized under the laws of Alabama or of another state, a municipality, a county, or an agency, department or instrumentality of a county or municipality, of one or more of the several states, or of the United States. See Alabama Code 33-17-1
  • person: An individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, public corporation, or any other legal or commercial entity. See Alabama Code 19-3A-102
  • person: Any natural person, firm, partnership, association, corporation, receiver, trust, estate, or other entity as well as any other group or combination thereof acting as a unit. See Alabama Code 8-17-80
  • Personal property: All property that is not real property.
  • personal property: includes money, goods, chattels, things in action and evidence of debt, deeds and conveyances. See Alabama Code 1-1-1
  • PETROLEUM PRODUCTS: Gasoline, diesel fuel, and lubricating oil. See Alabama Code 8-17-80
  • PRESUMPTIVE REMAINDER BENEFICIARY: Those persons who would be entitled to the principal of a trust if the income interest were immediately terminated, and if a trust contains a power of appointment, the holder of such power of appointment shall also be a presumptive remainder beneficiary. See Alabama Code 19-3A-102
  • principal: Property transferred to or acquired by a fiduciary and held in trust for distribution to a remainder beneficiary when an income interest ends. See Alabama Code 19-3A-102
  • PRINCIPAL OFFICE: The place at which the certificate of incorporation and amendments thereto, the bylaws and the minutes of proceedings of the board of a district are kept. See Alabama Code 11-89-1
  • Probate: Proving a will
  • Probation: A sentencing alternative to imprisonment in which the court releases convicted defendants under supervision as long as certain conditions are observed.
  • property: Real and personal property and interests therein. See Alabama Code 11-89-1
  • property: Such term means and includes real and personal property and interests therein. See Alabama Code 33-15-1
  • property: Such term means and includes real and personal property, and interests therein. See Alabama Code 33-16-1
  • property: Such term means and includes real and personal property, and interests therein. See Alabama Code 33-17-1
  • property: includes both real and personal property. See Alabama Code 1-1-1
  • Prosecute: To charge someone with a crime. A prosecutor tries a criminal case on behalf of the government.
  • PUBLIC CORPORATION: Any public corporation organized under the laws of the state. See Alabama Code 11-89-1
  • PUBLIC FIRE PROTECTION FACILITY: A fire protection facility which is owned or operated by the United States of America, the state, a county, a municipality, a public corporation, any combination of any thereof or any agency or instrumentality of any one or more thereof or in which any one or more thereof or any agency or instrumentality of any one or more thereof holds a reversionary or remainder interest. See Alabama Code 11-89-1
  • Public law: A public bill or joint resolution that has passed both chambers and been enacted into law. Public laws have general applicability nationwide.
  • PUBLIC SEWER SYSTEM: A sewer system which is owned or operated by the United States of America, the state, a county, a municipality, a public corporation, a cooperative, any combination of any thereof or any agency or instrumentality of any one or more thereof or in which any one or more thereof or any agency or instrumentality of any one or more thereof holds a reversionary or remainder interest. See Alabama Code 11-89-1
  • PUBLIC WATER SYSTEM: A water system which is owned or operated by the United States of America, the state, a county, a municipality, a public corporation, a cooperative, any combination of any thereof or any agency or instrumentality of any one or more thereof or in which any one or more thereof or any agency or instrumentality of any one or more thereof holds a reversionary or remainder interest. See Alabama Code 11-89-1
  • Quorum: The number of legislators that must be present to do business.
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.
  • REMAINDER BENEFICIARY: A person entitled to receive principal when an income interest ends. See Alabama Code 19-3A-102
  • Remainderman: One entitled to the remainder of an estate after a particular reserved right or interest, such as a life tenancy, has expired.
  • RESERVE COMPONENT OF THE ARMED FORCES: The United States Army Reserve, United States Navy Reserve, United States Marine Corps Reserve, United States Coast Guard Reserve, United States Air Force Reserve, and Alabama National Guard. See Alabama Code 31-12-1
  • Restitution: The court-ordered payment of money by the defendant to the victim for damages caused by the criminal action.
  • SERVICE AREA: The geographic area or areas in which a district is authorized by its certificate of incorporation or any amendment thereto to render water service, fire protection service, sewer service or any thereof, which area may include both territory located outside the boundaries of any municipality and territory located within the boundaries of one or more municipalities. See Alabama Code 11-89-1
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • SEWER SERVICE: All services involved in collecting, transporting, treating and disposing of sanitary sewage or solid wastes and the performing of all functions and activities reasonably incident to the operation of a sewer system. See Alabama Code 11-89-1
  • SEWER SYSTEM: A sanitary sewer system, including mains, laterals, sewage disposal plants and sewage treatment plants and all appurtenances to such a system and all properties, rights, easements and franchises deemed necessary or desirable by the district for use in rendering sewer services. See Alabama Code 11-89-1
  • SOLID WASTES: All solid wastes and hazardous wastes as the same are defined in Article 1 of Chapter 27 of Title 22. See Alabama Code 11-89-1
  • special corporation: shall mean any corporation organized pursuant to this article. See Alabama Code 11-89-31
  • state: The State of Alabama. See Alabama Code 11-89-1
  • state: The State of Alabama. See Alabama Code 33-15-1
  • state: In the absence of clear implication herein otherwise, such term means the State of Alabama. See Alabama Code 33-16-1
  • state: In the absence of clear implication herein otherwise, such term means the State of Alabama. See Alabama Code 33-17-1
  • state: The State of Alabama. See Alabama Code 8-17-80
  • state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
  • STATE ACTIVE DUTY: Any state funded duty performed, other than for training, by an active member of the Alabama National Guard in accordance with this title. See Alabama Code 31-12-1
  • Statute: A law passed by a legislature.
  • SUPPLY DISTRICT: A district which renders sewer service or water service only to one or more counties, municipalities, or other public corporations, a cooperative, or to one or more customers of a county, municipality, public corporation, or a cooperative at its written request. See Alabama Code 11-89-1
  • system: The statewide wireless communications system established and administered by the Alabama First Responder Wireless Commission. See Alabama Code 31-9C-1
  • TERMS OF A TRUST: The manifestation of the intent of a settlor or decedent with respect to the trust, expressed in a manner that admits of its proof in a judicial proceeding, whether by written or spoken words or by conduct. See Alabama Code 19-3A-102
  • Testator: A male person who leaves a will at death.
  • Testimony: Evidence presented orally by witnesses during trials or before grand juries.
  • Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
  • Trial: A hearing that takes place when the defendant pleads "not guilty" and witnesses are required to come to court to give evidence.
  • trustee: An original, additional, or successor trustee, whether or not appointed or confirmed by a court. See Alabama Code 19-3A-102
  • Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
  • United States: includes the territories thereof and the District of Columbia. See Alabama Code 1-1-1
  • UNITRUST AMOUNT: An amount determined annually equal to a percentage (specified by the provisions of the governing instrument, the written notice referenced in Section 19-3A-106(a), the written instrument referenced in Section 19-3A-106(b), or the order of the court referenced in Section 19-3A-106(c), whichever is applicable) of the net fair market value of the trust assets, whether determined annually or averaged over a designated multiple year smoothing period. See Alabama Code 19-3A-102
  • Venue: The geographical location in which a case is tried.
  • WATER SERVICE: The providing, furnishing, supplying or distributing of water and the performing of all of the functions and activities reasonably incident to the operation of a water system. See Alabama Code 11-89-1
  • WATER SYSTEMS: Land, plants, systems, facilities, buildings and other property or any combination of any thereof which are used or useful or capable of future use in providing, furnishing, supplying or distributing water, including, but not limited to, water supply systems, water distribution systems, reservoirs, wells, intakes, mains, laterals, aqueducts, pumping stations, standpipes, tanks, filtration plants, purification plants, meters, valves and all necessary appurtenances and equipment and all properties, rights, easements and franchises deemed necessary or desirable by the district for use in rendering water service. See Alabama Code 11-89-1
  • watershed: Such term means and includes all land in the counties of Marion, Colbert, Franklin and Winston, lying within 15 miles of Bear Creek and any of its tributaries. See Alabama Code 33-15-1
  • waterway: A navigable waterway utilizing the channel of the Coosa River between Montgomery and Gadsden and to the Alabama-Georgia boundary, as authorized by the River and Harbor Act of March 2, 1945, Public Law 14, 79th Congress, 1st Session (1945). See Alabama Code 33-16-1
  • waterway: A navigable waterway, utilizing the channel of the Tombigbee River, between Demopolis, Alabama and the Tennessee River, as authorized by the River and Harbor Act of 1946, 60 Statutes at Large 634, 79th Congress, 2nd Session (1946), in accordance with House Document No. See Alabama Code 33-17-1
  • year: means a calendar year; but, whenever the word "year" is used in reference to any appropriations for the payment of money out of the treasury, it shall mean fiscal year. See Alabama Code 1-1-1