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

KRS 386.601 to 386.619 shall apply to qualified dispositions to qualified trusts and dispositions by transferors who are trustees made on or after July 15, 2026.

As used in KRS 386.620 to 386.624: (1) "Community property" means property owned by a community property trust during the marriage of the settlor spouses; (2) "Community property trust" means an express trust that complies with the requirements of KRS 386.622; (3) "Decree" means …

community property trust -- Requirements for -- Provisions of written agreement -- Amendment or revocation of trust -- Consideration not required - - Classification and distribution of property. (1) Any arrangement between spouses involving community property shall be considered …

trust -- Distribution of assets upon death of spouse or dissolution of marriage. (1) An obligation incurred by only one (1) spouse before or during marriage may be satisfied from that spouse's one-half (1/2) share of a community property trust. (2) An obligation incurred by both …

(1) Unless otherwise provided in a governing instrument, and if permitted by any law applicable to entities other than statutory trusts, one (1) or more statutory trusts may merge with or into one (1) or more other entities with the statutory trust or other business entity being …

(1) Except as otherwise provided in subsection (3) of this section, a person designated as trustee accepts the trusteeship: (a) By substantially complying with a method of acceptance provided in the terms of the trust; or (b) If the terms of the trust do not provide a method or t…

(1) With respect to each constituent statutory trust, the plan of merger shall require the approval of the beneficial owners. (2) Each constituent organization that is not a statutory trust and that is a party to a proposed merger shall approve the plan of merger in the manner an…

(1) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and the court has not dispensed with the requirement. (2) The court may…

(1) Cotrustees who are unable to reach a unanimous decision may act by majority decision. (2) If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust. (3) Subject to KRS 386B.12-110, a cotrustee shall participate in the performance of a trustee's fu…

(1) Each constituent organization shall enter into a written plan of merger. (2) The plan of merger shall set forth: (a) The name of each constituent organization and the name of the constituent organization into which each constituent organization proposes to merge; (b) The term…

(1) A vacancy in a trusteeship occurs if: (a) A person designated as trustee rejects the trusteeship; (b) A person designated as trustee cannot be identified or does not exist; (c) A trustee resigns; (d) A trustee is disqualified or removed; (e) A trustee dies; or (f) A guardian,…

(1) The surviving constituent organization shall deliver to the Secretary of State for filing articles of merger duly executed by each constituent organization setting forth: (a) The name and jurisdiction of incorporation, formation, or organization of each constituent organizati…

(1) A trustee may resign: (a) Upon at least thirty (30) days' notice to the qualified beneficiaries and all cotrustees; or (b) With the approval of the court. (2) In approving a resignation, the court may issue orders and impose conditions reasonably necessary for the protection …

A merger shall have the following effects: (1) The constituent organizations that are parties to the merger shall be a single entity, which shall be the entity designated in the plan of merger as the surviving constituent organization; (2) Each constituent organization, except th…

(1) An entity other than a corporation governed as to its internal affairs by KRS Chapter 273 or a nonprofit limited liability company may be converted to a statutory trust pursuant to this section. (2) The terms and conditions of a conversion shall be approved: (a) In the case o…

(1) The settlor, a cotrustee, or a beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative. (2) The court may remove a trustee if: (a) The trustee has committed a breach of trust; (b) Lack of cooperation among cotruste…

(1) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the …

(1) A converted statutory trust shall be for all purposes the same entity that existed before the conversion. (2) When a conversion takes effect: (a) All property and contract rights owned by, and all rights, privileges, and immunities of the converting organization shall remain …

(1) If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances. (2) If the terms of a trust specify the trustee's compensation, the trustee is entitled to be compensated as specified, but the…

This subchapter does not preclude an organization from being merged or converted under law other than this chapter.

(1) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for: (a) Expenses that were properly incurred in the administration of the trust; and (b) To the extent necessary to prevent unjust enrichment of the trust, expenses that were not …

The District Court shall have exclusive jurisdiction over matters under this subchapter relating to the office of the trustee.

Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes and the interests of the beneficiaries, and in accordance with this chapter.

A statutory trust is dissolved by: (1) Administrative dissolution under Subchapter 7 of KRS Chapter 14A; (2) The filing of articles of dissolution under KRS 386A.8-020: (a) On the occurrence of an event or circumstance that the governing instrument states causes dissolution; or (…

(1) If dissolution of a statutory trust is authorized under KRS 386A.8-010(2) or (3), the trust shall deliver to the Secretary of State for filing articles of dissolution setting forth: (a) The name of the trust; and (b) The date of the event or circumstance causing the dissoluti…

(1) A trustee shall administer the trust solely in the interests of the beneficiaries. (2) Subject to the rights of persons dealing with or assisting the trustee as provided in KRS 386B.10-110, a sale, encumbrance, or other transaction involving the investment or management of tr…

(1) The appropriate court may dissolve a statutory trust in a proceeding by a beneficial owner if it is established that: (a) It is not reasonably practicable to carry on the business of the statutory trust in conformity with the governing instrument; or (b) The trust has been wi…

If a trust has two (2) or more beneficiaries, the trustee shall act impartially in investing, managing, and distributing the trust property, giving due regard to the beneficiaries' respective interests.

A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.

(1) After dissolution, a statutory trust continues its existence as a statutory trust, 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 the trust; (b) Disposing of the propert…

(1) Subject to KRS 386A.8-030(3), after dissolution of a statutory trust, the trustee or trustees shall wind up the trust's activities. (2) The appropriate court may order judicial supervision of the winding up of a statutory trust, including the appointment of a person to wind u…

In administering a trust, the trustee may incur only costs that are reasonable in relation to the trust property, the purposes of the trust, and the skills of the trustee.

A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, shall use those special skills or expertise.

(1) Upon dissolution, a statutory trust may, and a series trust shall, dispose of the known claims against it by following the procedures described in this section. (2) The statutory trust shall notify its known claimants, as well as all known claimants of any series or against t…

(1) A statutory trust may, and a series trust 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 Commo…

(1) A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill, and caution in: (a) Selecting an agent; (b) Establishing the scope and terms of the delegat…

(1) Upon the winding up of a statutory trust, the assets of the trust shall be distributed as follows: (a) 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 satisfaction …

A trustee shall take reasonable steps to take control of and protect the trust property.

(1) A trustee shall keep adequate records of the administration of the trust. (2) A trustee shall keep trust property separate from the trustee's own property. (3) Except as otherwise provided in subsection (4) of this section, a trustee shall cause the trust property to be desig…

A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.

A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to redress a breach of trust known to the trustee to have been committed by a former trustee.

(1) Except as otherwise provided in the terms of the trust: (a) A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests. Unless unreasonable und…

(1) The judicial standard of review for a discretionary power is that the trustee shall exercise the power reasonably, in good faith, and in accordance with the terms and purposes of the trust and the interests of the beneficiaries, except that a reasonableness standard shall not…

(1) A trustee, without authorization by the court, may exercise: (a) Powers conferred by the terms of the trust; and (b) Except as limited by the terms of the trust: 1. All powers over the trust property which an unmarried competent owner has over individually owned property; 2. …

Without limiting the authority conferred by KRS 386B.8-150, a trustee may: (1) Collect trust property and accept or reject additions to the trust property from a settlor or any other person; (2) Acquire or sell property, for cash or on credit, at public or private sale; (3) Excha…

(1) Upon termination or partial termination of a trust, the trustee may send to the beneficiaries a proposal for distribution. The right of any beneficiary to object to the proposed distribution terminates if the beneficiary does not notify the trustee of an objection within thir…