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

(1) The law of this Commonwealth pertaining to common-law trusts supplements this chapter. (2) A governing instrument may supersede or modify application to the statutory trust of any law of this Commonwealth pertaining to common-law trusts. (3) Unless displaced by particular pro…

(1) It shall be the policy of the Commonwealth through this chapter to give maximum effect to the principles of freedom of contract and the enforceability of governing instruments. (2) Except to the extent set forth in a governing instrument, a statutory trust is bound by the gov…

In applying and construing this chapter, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

Act. This chapter does modify, limit, and supersede the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. secs. 7001 et seq., but does not modify, limit, or supersede Section 101(c) of that act, 15 U.S.C. sec. 7001(c), or authorize electronic delivery o…

This chapter does not affect an action commenced, proceeding brought, or right accrued before July 12, 2012.

foreign business trusts. (1) This chapter does not limit, prohibit, or invalidate the existence, acts, or obligations of any common-law trust created or doing business in this Commonwealth before, on, or after July 12, 2012. (2) A business trust formed under any statute of this C…

(1) A statutory trust is formed when a certificate of trust that complies with subsection (2) of this section and filed by the Secretary of State is effective as determined under KRS 14A.2-070. (2) A certificate of trust must state: (a) The name of the statutory trust, which must…

(1) A statutory trust shall amend its certificate of trust to add or change a provision that is required by this chapter to be included in the certificate of trust. A statutory trust may amend its certificate of trust to add, change, or delete a provision that is permitted to be …

(1) A record delivered by a statutory trust to the Secretary of State for filing shall be executed as provided in KRS 14A.2-020. (2) It shall not be necessary that the person who as organizer executes the initial certificate of trust be a trustee.

and date. (1) A record authorized or required to be delivered to the Secretary of State for filing under KRS 386A.1-010 to 386A.10-040 shall satisfy the requirements of this chapter and KRS Chapter 14A. (2) A record delivered to the Secretary of State for filing under this chapte…

A record filed by the Secretary of State may be corrected as provided in KRS 14A.2-090.

The Secretary of State may, with respect to a statutory trust, issue a certificate of existence as provided in KRS 14A.2-130.

The name of a statutory trust must satisfy the requirements of KRS 14A.3-010.

A statutory trust shall designate and maintain in this Commonwealth a registered agent and registered office in compliance with KRS 14A.4-010.

A statutory trust shall file an annual report in compliance with KRS 14A.6-010.

The laws of this Commonwealth govern the internal affairs of a statutory trust including: (1) The liability of a beneficial owner as beneficial owner and a trustee as trustee for a debt, obligation, or other liability of a statutory trust or a series thereof; (2) The enforceabili…

(1) A statutory trust is a legal entity distinct from its trustees and beneficial owners. (2) A statutory trust may hold or take title to property in its own name, or in the name of a trustee in the trustee's capacity as trustee, whether in an active, passive, or custodial capaci…

(1) Except as otherwise provided in subsection (2) of this section, a statutory trust may have any lawful purpose. (2) A statutory trust may not: (a) Have a predominantly donative purpose; or (b) Be organized for the purpose of rendering a professional service.

(1) A debt, obligation, or other liability of a statutory trust is solely a debt, obligation, or other liability of the trust. (2) A debt, obligation, or other liability incurred by or otherwise existing with respect to the property of or associated with a particular series of a …

(1) A statutory trust has perpetual existence. (2) A statutory trust, or any series thereof, may not be terminated or revoked except in accordance with this chapter or the terms of the governing instrument. (3) A statutory trust does not terminate because the same person is the s…

(1) A statutory trust may sue and be sued in its own name. (2) A beneficial owner or a trustee of a statutory trust shall not be a proper party to a proceeding by or against a statutory trust solely by reason of being a beneficial owner or trustee of the statutory trust except if…

(1) If a statutory trust complies with KRS 386A.4-020(2), a governing instrument may establish or provide for the establishment of one (1) or more designated series that: (a) Has separate rights, powers, or duties with respect to specified property or obligations or profits and l…

(1) Subject to subsection (2) of this section: (a) A debt, liability, obligation, and expense incurred, contracted for, or otherwise existing with respect to a series, whether in its name or as to the property of or associated therewith, shall be enforceable against the assets of…

Assets of or associated with a series may be held directly or indirectly, including in the name of the series, in the name of the statutory trust, through a nominee, or otherwise.

(1) A person who ceases to be a beneficial owner of a statutory trust shall cease to be associated, as a beneficial owner, with any series thereof. (2) A trustee who ceases to be a trustee of a statutory trust shall cease to be associated, as a trustee, with any series thereof. (…

(1) A series may be dissolved and its activities and affairs may be wound up without causing the dissolution of the statutory trust. (2) The dissolution and winding up of a series does not abate, suspend, or otherwise affect the application of KRS 386A.3-040. (3) The dissolution …

(1) A series shall be dissolved, and it shall commence to wind up its activities and affairs, upon the first to occur of the following: (a) The dissolution of the statutory trust; (b) An event or circumstance that the governing instrument states causes dissolution of the series; …

(1) A dissolved series continues its existence as a series, but may not carry on any activities except as is appropriate to wind up and liquidate its activities and affairs, including: (a) Collecting the assets of or associated with the series; (b) Disposing of the assets of or a…

(1) Subject to subsection (2) of this section, after dissolution of a series, the trustees associated with the series, if any, and if none, the trustees of the statutory trust, shall wind up the series's activities. (2) The appropriate court may order judicial supervision of the …

(1) Upon dissolution pursuant to KRS 386A.4-060(1)(b), (c), (d), or (e), a series of a statutory trust shall dispose of the known claims against the property of or associated with it by following the procedures described in this section. (2) The series shall notify its known clai…

(1) A dissolved series shall publish notice of its dissolution pursuant to this section. (2) The notice shall: (a) Be published once in a newspaper of general circulation in the county where the statutory trust's principal office, or, if none in this Commonwealth, its registered …

Upon the winding up of a series, the assets of or associated with the series shall be distributed as follows: (1) First, payment or adequate provisions for payment shall be made to creditors, including, to the extent permitted by law, beneficial owners who are creditors, in satis…

(1) The business and affairs of a statutory trust must be managed by or under the authority of its trustees. (2) If there is at least one (1) trustee that in the discharge of all obligations under the governing instrument and this chapter is obligated to consider the interests of…

(1) A trustee may exercise: (a) Powers conferred by the governing instrument; (b) Except as limited by the governing instrument, any other powers necessary or convenient to carry out the business and affairs of the statutory trust; and (c) Other powers conferred by this chapter. …

(1) On any matter that is to be acted on by trustees: (a) Each trustee has equal rights in the management and conduct of trust business; and (b) The trustees act by majority of the trustees. (2) The trustees may act other than at a meeting of the trustees if the minimum number of…

(1) A person that in good faith assists a trustee, or in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's power, is protected from liability as if the trustee properly exercised the power. (2) A …

(1) Subject to KRS 386A.5-010(2), in exercising the powers of trusteeship, a trustee shall act in good faith, on an informed basis, and in a manner the trustee reasonably believes to be in the best interests of the statutory trust. (2) A trustee shall discharge his or her duties …

(1) A trustee, officer, employee, manager, committee of a statutory trust, or other person designated pursuant to KRS 386A.1-030(4)(h) shall be entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, if prepared …

(1) Each trustee and each person designated pursuant to KRS 386A.1-030(4)(h) owes a duty of loyalty to the statutory trust and any series thereof, including but not limited to the following: (a) To account to the trust or a series thereof and hold as trustee for it any property, …

A trustee has the right to receive from a statutory trust or another trustee information relating to the affairs of the trust which is reasonably related to the trustee's discharge of the trustee's duties as trustee. The trustee may enforce this right to information by summary pr…

(1) Subject to KRS 386A.1-040(2)(q), a statutory trust may: (a) Indemnify and hold harmless a trustee, beneficial owner, or other person with respect to any claim or demand against the person by reason of the person's relationship with the trust; and (b) Advance expenses, includi…

(1) The governing instrument may authorize any person, including a beneficial owner, to direct a trustee or other person in the management of a statutory trust. (2) If the governing instrument confers on a person a power to direct actions by a trustee or other person, the trustee…

(1) A trustee may delegate duties and powers, including to a co-trustee. The trustee shall exercise the care that a person in a similar position would reasonably believe appropriate under similar circumstances in: (a) Selecting an agent; (b) Establishing the scope and terms of th…

(1) In this section, "affiliated person" and "interested person" have the meanings set forth in the Investment Company Act of 1940, Pub. L. No. 76-768, as amended, or any successor statute and any regulations issued thereunder. (2) If a statutory trust is registered as an investm…

(1) A beneficial interest in a statutory trust is personal property regardless of the nature of the property of the trust. (2) A beneficial interest in a statutory trust is not an interest in specific property of the statutory trust. (3) A beneficial interest in a statutory trust…

(1) The vote of all beneficial owners is required for: (a) The amendment of the governing instrument; (b) Compromise of a beneficial owner's obligation to make a contribution to the statutory trust; (c) The conversion of the statutory trust; (d) The merger of the statutory trust;…