Title XXXIII, Administration of Trusts and Estates of Persons Under Disability

As used in KRS 386.010 to 386.170, unless the context requires otherwise: (1) "Fiduciary" means any trustee, guardian, executor, administrator, conservator or other individual or corporation holding funds or otherwise acting in a fiduciary capacity; and (2) "Principal" means any …

Section not applicable to trustees. (1) Any fiduciary holding funds for loan or investment may invest them in: (a) Bonds or other interest-bearing obligations of the federal government; (b) Bonds, state warrants, and other interest-bearing obligations of this state; (c) Obligatio…

Any other provisions of this chapter notwithstanding, and in the absence of an express provision to the contrary in an instrument establishing a fiduciary relationship, whenever such instrument requires, directs, authorizes, or permits a fiduciary to invest funds in obligations o…

as fiduciary. No bank or trust company empowered to act as a fiduciary under the laws of this state, shall purchase shares of its own capital stock or shares of the capital stock of an affiliated institution as an investment for any estate or trust under its management, unless ex…

public officials. (1) Banks, trust companies, insurance companies, savings and loan associations, executors, administrators, trustees or others acting in a fiduciary capacity, trust funds, and other financial institutions, originating mortgagee institutions, and other institution…

Notes or bonds secured by mortgage or trust deed insured and debentures issued by the Federal Housing Administrator, debentures issued by national mortgage associations, and any electric revenue bonds or other obligations issued by the Tennessee Valley Authority, are eligible sec…

public deposits -- Negotiable -- United States bonds. (1) This state and all public officers, cities, political subdivisions and public bodies, all banks, trust companies, savings institutions, savings and loan associations, investment companies and other persons carrying on a ba…

The provisions of this chapter shall not be construed to permit a sale, investment or loan in conflict with the provisions of the will, deed or other instrument creating the trust, or under which the funds or property may be held.

trustees. (1) Any person who in good faith pays or transfers to a fiduciary any money or other property which the fiduciary as such is authorized to receive shall not be responsible for the proper application thereof by the fiduciary, and any right or title acquired from the fidu…

If any negotiable instrument payable or endorsed to a fiduciary as such is endorsed by the fiduciary, or if any negotiable instrument payable or endorsed to his principal is endorsed by a fiduciary empowered to endorse the instrument on behalf of his principal, the endorsee is no…

If a fiduciary makes a deposit in a bank or trust company to his personal credit of checks drawn by him upon an account in his own name as fiduciary, or of checks payable to him as fiduciary, or of checks drawn by him upon an account in the name of his principal if he is empowere…

(1) If a deposit is made in a bank or trust company to the credit of a fiduciary as such, the bank or trust company may pay the amount of the deposit or any part thereof upon the check of the fiduciary, signed with the name in which the deposit is entered, without being liable to…

(1) If a check or other bill of exchange is drawn by a fiduciary as such, or in the name of his principal by a fiduciary empowered to draw the instrument in the name of his principal, the payee is not bound to inquire whether the fiduciary is committing a breach of his obligation…

KRS 386.100 to 386.140 do not in any way relieve a fiduciary who breaches his trust and causes any loss thereby of his liability under his bond, or of any civil or criminal liability provided for by law.

Any fiduciary of whom a bond, undertaking or other obligation is required may agree with his surety for the deposit and safekeeping of any moneys and assets for which he and his surety may be held responsible, with a bank, safe deposit or trust company, authorized by law to do bu…

of deposits. (1) Notwithstanding any other provision of law, any fiduciary holding securities in its fiduciary capacity, any bank or trust company holding securities as a custodian or managing agent, any bank or trust company holding securities as custodian for a fiduciary, is au…

Power to act in this state. (1) Where the beneficial owner of personal estate, held and controlled for his benefit or the benefit of his children or heirs by a trustee, is a nonresident of this state and has no trustee in this state, his trustee, appointed and qualified according…

As used in KRS 386.355 and 386.360, unless the context requires otherwise: (1) "Internal Revenue Code" means the Internal Revenue Code of 1954, in effect on January 1, 1970, including all appropriate provisions of the Tax Reform Act of 1969 at the dates specified in that law, exc…

interest trusts -- Charitable trusts. (1) In the administration of any trust which is a "private foundation" as defined in Section 509 of the Internal Revenue Code, a trust for charitable purposes described in Section 4947(a)(1) of the Internal Revenue Code to the extent that it …

(1) In order to assist charitable trust interests in maintaining various tax benefits extended to them, the governing instrument of a trust may be amended to permit the trust to conform to the requirements of, or to obtain benefits available under, applicable provisions of the In…

trust -- Assets available for distribution defined. (1) Upon termination or dissolution of any trust or other entity (other than a corporation) which is or may become an exempt organization as described in Section 501(c)(3) of the Internal Revenue Code of 1954, as amended, or a c…

(1) Absent the showing of a compelling state interest, a state agency or state official shall not impose any filing or reporting requirements that are more burdensome than the requirements authorized by the Kentucky Revised Statutes on an organization that is determined to be a: …

(1) A business trust is an express trust created by a written declaration of trust whereby property is conveyed to one (1) or more trustees, who hold and manage same for the benefit and profit of such persons as may be or become, the holders of transferable certificates evidencin…

A business trust may be established by a declaration of trusts, duly executed by one (1) or more trustees, for any lawful purpose including, but not limited to, acquiring, managing, improving, leasing, dealing in, selling, or otherwise alienating, mortgaging, or otherwise encumbe…

The name of a business trust or foreign business trust qualified to transact business in this Commonwealth shall satisfy the requirements of KRS 14A.3-010.

Each domestic business trust and each foreign business trust authorized to transact business in the Commonwealth shall continuously maintain in this Commonwealth a registered office and a registered agent that comply with KRS 14A.4-010.

The trustees shall hold the legal title to all property at any time belonging to the business trust. They shall have control over such property as well as the control and management of the business and affairs of the business trust. Liability to third persons for any act, omissio…

Each business trust and each foreign business trust qualified to transact business in this Commonwealth is subject to KRS 14A.6-010.

The beneficial ownership in a business trust shall be evidenced by certificates issued by the trustees. These certificates shall be transferable in the same manner as stock certificates of a corporation are transferable. No assessment shall be made against the interest of any ben…

No beneficial owner of certificates in a foreign business trust shall have his interests therein assessed and no beneficial owner of a foreign trust shall be personally liable for any debts or liabilities incurred by the trustees or by the foreign business trust after June 16, 19…

(1) The written declaration of trust may provide for the election of successor trustees in the event of the death, resignation and removal of a trustee and may provide for the amendment of the declaration of trust. The declaration of trust may also contain such other provisions r…

alienation not violated. A business trust shall not be deemed invalid as violating the rule against perpetuities or the law against suspension of the powers of alienation. Such trust may continue for such time as may be necessary to accomplish the purposes for which it may be cre…

A business trust may be sued for debts and other obligations incurred by the trustees in the performance of their duties under the declaration of trust, and for any damages resulting from the negligence of such trustees and its property shall be subject to attachment and executio…

(1) Subject to the Constitution of this Commonwealth: (a) Except as provided in subsection (2) of this section, the laws of the state or other jurisdiction under which a foreign business trust is organized shall govern its organization and internal affairs, including the liabilit…

A foreign business trust transacting business in this Commonwealth is subject to KRS 14A.9-010.

Each foreign business trust authorized to transact business in this Commonwealth shall continuously maintain in this Commonwealth a registered office and a registered agent that comply with KRS 14A.4-010.

386.504. As used in KRS 386.450 to 386.504: (1) "Accounting period" means a calendar year unless another twelve (12) month period is selected by a fiduciary. The term includes a portion of a calendar year or other twelve (12) month period that begins when an income interest begin…

(1) In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of Articles 2 and 3 of the Kentucky Principal and Income Act, a fiduciary: (a) Shall administer a trust or estate in accordance with the terms of the t…

trust or estate -- Power to adjust between principal and income -- Conversion to unitrust -- Powers under previous version of section. (1) (a) A fiduciary may, after providing notice as required under paragraph (g) of this subsection, adjust between principal and income to the ex…

After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply: (1) A fiduciary of an estate or of a terminating income interest shall determine the amount of net income and net principal receipts received from property spe…

(1) Each beneficiary described in KRS 386.456(4) is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribution date. If a fiduciary makes more than one (1) distribution of a…

(1) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a trust or successive income inter…

income interest begins. (1) A trustee shall allocate an income receipt or disbursement other than one to which KRS 386.456(1) applies to principal if its due date occurs before a decedent dies in the case of an estate or before an income interest begins in the case of a trust or …

ends. (1) In this section, "undistributed income" means net income received before the date on which an income interest ends. The term shall not include an item of income or expense that is due or accrued or net income that has been added or is required to be added to principal u…

(1) In this section, "entity" means a corporation, partnership, limited partnership, limited liability company, statutory or business trust, regulated investment company, real estate investment trust, common trust fund, or any other organization in which a trustee has an interest…

A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as a distribution of principal from such a trust or e…

A trustee shall allocate to principal: (1) To the extent not allocated to income under KRS 386.450 to 386.504, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating income interest, or a payer under a contract naming t…

To the extent that a trustee accounts for receipts from rental property under this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal of a lease. An amount received as a r…

(1) An amount received as interest, whether determined at a fixed, variable, or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, shall be allocated to income without any provision for amortization …

(1) Except as otherwise provided in subsection (2) of this section, a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, including a contract that insures the trust or its truste…