FROM THE ALABAMA LAWYER- Alabama Qualified Dispositions in Trust Act
Historically, grantors of trusts have had little asset protection afforded them where they name themselves as a beneficiary of a trust, even an irrevocable trust. Section 505(a)(2) of the Uniform Trust Code and its Alabama counterpart, § 19-3B-505(a)(2), Code of Alabama (1975), provide that “[w]ith respect to an irrevocable trust, a creditor or assignee of the grantor may reach the maximum amount that can be distributed to or for the grantor’s benefit.”