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

An exercise of the decanting power shall be made in a record signed by an authorized fiduciary. The signed record shall, directly or by reference to the notice required by KRS 386B.13-060 identify the first trust and the second trust or trusts and state the property of the first …

distributive discretion. (1) As used in this section: (a) "Noncontingent right" means a right that is not subject to the exercise of discretion or the occurrence of a specified event that is not certain to occur. The term does not include a right held by a beneficiary if any pers…

(1) As used in this section, "limited distributive discretion" means a discretionary power of distribution that is limited to an ascertainable standard or a reasonably definite standard. (2) An authorized fiduciary that has limited distributive discretion over the principal of th…

(1) As used in this section: (a) "Beneficiary with a disability" means a beneficiary of a first trust who the special needs fiduciary believes may qualify for governmental benefits based on disability, whether or not the beneficiary currently receives those benefits or is an in i…

(1) As used in this section: (a) "Determinable charitable interest" means a charitable interest that is a right to a mandatory distribution currently, periodically, on the occurrence of a specified event, or after the passage of a specified time and which is unconditional or will…

(1) An authorized fiduciary may not exercise the decanting power to the extent the first-trust instrument expressly prohibits the exercise of: (a) The decanting power; or (b) A power granted by state law to the fiduciary to distribute part or all of the principal of the trust to …

(1) If a first-trust instrument specifies an authorized fiduciary's compensation, the fiduciary may not exercise the decanting power to increase the fiduciary's compensation above the specified compensation unless: (a) All qualified beneficiaries of the second trust consent to th…

(1) Except as otherwise provided in this section, a second-trust instrument may not relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-trust instrument. (2) A second-trust instrument may provide for indemnification of an authoriz…

An authorized fiduciary may not exercise the decanting power to modify a provision in a first-trust instrument granting another person power to remove or replace the fiduciary unless: (1) The person holding the power consents to the modification in a signed record and the modific…

(1) As used in this section: (a) "Grantor trust" means a trust as to which a settlor of a first trust is considered the owner under 26 U.S.C. secs. 671 to 677, as amended, or 26 U.S.C. sec. 679, as amended; (b) "Internal Revenue Code" means the United States Internal Revenue Code…

(1) Subject to subsection (2) of this section, a second trust may have a duration that is the same as or different from the duration of the first trust. (2) To the extent that property of a second trust is attributable to property of the first trust, the property of the second tr…

An authorized fiduciary may exercise the decanting power whether or not under the first trust's discretionary distribution standard the fiduciary would have made or could have been compelled to make a discretionary distribution of principal at the time of the exercise.

(1) If exercise of the decanting power would be effective under KRS 386B.13-010 to 386B.13-280 except that the second-trust instrument in part does not comply with the provisions of KRS 386B.13-010 to 386B.13-280, the exercise of the power is effective and the following rules sha…

(1) As used in this section: (a) "Animal trust" means a trust or an interest in a trust created to provide for the care of one (1) or more animals; and (b) "Protector" means a person appointed in an animal trust to enforce the trust on behalf of the animal or, if no such person i…

A reference in KRS Chapter 386B to a trust instrument or terms of the trust includes a second-trust instrument and the terms of the second trust.

(1) For purposes of law of this Commonwealth other than KRS 386B.13-010 to 386B.13-280 and subject to subsection (2) of this section, a settlor of a first trust is deemed to be the settlor of the second trust with respect to the portion of the principal of the first trust subject…

(1) Except as otherwise provided in subsection (3) of this section, if exercise of the decanting power was intended to distribute all the principal of the first trust to one (1) or more second trusts, later-discovered property belonging to the first trust and property paid to or …

A debt, liability, or other obligation enforceable against property of a first trust is enforceable to the same extent against the property when held by the second trust after exercise of the decanting power.

In applying and construing KRS 386B.13-010 to 386B.13-280, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

National Commerce Act. The provisions of KRS 386B.13-010 to 386B.13-280 modify, limit, or supersede the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. sec. 7001 et seq., but do not modify, limit, or supersede Section 101(c) of that Act, 15 U.S.C. sec. 7001(c…

(1) The court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law. (2) A trust is not subject to continuing judicial supervision unless ordered by the court. (3) A judicial proceeding involving a t…

(1) By accepting the trusteeship of a trust having its principal place of administration in this Commonwealth or by moving the principal place of administration to this Commonwealth, the trustee submits personally to the jurisdiction of the courts of this Commonwealth regarding a…

Except with regard to matters otherwise provided for by statute: (1) The District Court and Circuit Court shall have concurrent jurisdiction of any proceedings in this Commonwealth brought by a trustee or beneficiary concerning any trust matter; and (2) If a proceeding is initial…

(1) Venue for proceedings under this chapter involving registered trusts is in the place of registration. (2) Venue for proceedings under this chapter involving trusts not registered in this Commonwealth is in any place where the trust properly could have been registered, and oth…

(1) The trustee of a trust having its principal place of administration in this Commonwealth shall register the trust in the District Court of this Commonwealth at the principal place of administration. Unless otherwise designated in the trust instrument, the principal place of a…

(1) Notice to a person who may represent and bind another person under this subchapter has the same effect as if notice were given directly to the other person. (2) The consent of a person who may represent and bind another person under this subchapter is binding on the person re…

appointment. To the extent there is no conflict of interest between the holder of a general testamentary power of appointment and the persons represented with respect to the particular question or dispute, the holder may represent and bind persons whose interests, as permissible …

To the extent there is no conflict of interest between the representative and the person represented or among those being represented with respect to a particular question or dispute: (1) A conservator may represent and bind the estate that the conservator controls; (2) A guardia…

Unless otherwise represented, a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another having a substantially identical interest with respect to the particular ques…

(1) If the court determines that an interest is not represented under this subchapter, or that the otherwise available representation might be inadequate because of conflict or otherwise, the court may appoint a guardian ad litem to receive notice, give consent, and otherwise rep…

A trust may be created by: (1) Transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking effect on the settlor's death; (2) Declaration by the owner of property that the owner holds identifiable property as trustee; or …

(1) A trust is created only if: (a) The settlor has capacity to create a trust; (b) The settlor indicates an intention to create the trust; (c) The trust has a definite beneficiary or is: 1. A charitable trust; 2. A trust for the care of an animal under KRS 386B.4-080; or 3. A tr…

A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation: (1) The settlor was domiciled, had a place of abode, or was a nat…

A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve. A trust and its terms shall be for the benefit of its beneficiaries.

(1) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to the community. (2) Except as otherwise provided in K…

A trust is void to the extent its creation was induced by fraud, duress, or undue influence.

Except as required by a statute other than those in this chapter, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence.

(1) A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates on the death of the animal or, if the trust was created to provide for the care of more than one (1) animal alive during the settlor's lifetime, on the death …

Except as otherwise provided in KRS 386B.4-080, KRS 367.952 regarding perpetual care and maintenance trusts for cemeteries, or by another statute, the following rules apply: (1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable bene…

disapproval. (1) In addition to the methods of termination prescribed by KRS 386B.4-110, 386B.4- 120, 386B.4-130, and 386B.4-140, a trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved, or the purpose…

consent. (1) Except as otherwise provided in the terms of the trust, a noncharitable irrevocable trust may be modified or terminated upon consent of the settlor and all beneficiaries, without court approval, even if the modification or termination is inconsistent with a material …

inability to administer trust effectively. (1) The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the ex…

(1) Except as otherwise provided in subsection (2) of this section, if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful: (a) The trust shall not fail, in whole or in part; (b) The trust property shall not revert to the settlor or…

(1) After notice to the qualified beneficiaries, the trustee of a trust consisting of trust property or a personal representative holding or controlling an amount directed by will to be held in trust, having a total value less than one hundred thousand dollars ($100,000) may term…

The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence what the settlor's intention was and that the terms of the trust were affected by a mistake of fact or law, whether in …

To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effect. The District Court shall have exclusive jurisdiction over m…