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

A trust director is subject to the same rules as a trustee in a like position and under similar circumstances in the exercise or nonexercise of a power of direction or further power under KRS 386B.12-050(2)(a) regarding: (1) A payback provision in the terms of a trust necessary t…

(1) Subject to subsection (2) of this section, with respect to a power of direction or further power under KRS 386B.12-050(2)(a): (a) A trust director has the same fiduciary duty and liability in the exercise or nonexercise of the power: 1. If the power is held individually, as a…

(1) Subject to subsection (2) of this section, a directed trustee shall take reasonable action to comply with a trust director's exercise or nonexercise of a power of direction or further power under KRS 386B.12-050(2)(a), and the trustee is not liable for the action. (2) A direc…

(1) Subject to KRS 386B.12-100, a trustee shall provide information to a trust director to the extent the information is reasonably related to both: (a) The powers or duties of the trustee; and (b) The powers or duties of the director. (2) Subject to KRS 386B.12-100, a trust dire…

(1) Unless the terms of a trust provide otherwise: (a) The trustee shall not have a duty to: 1. Monitor a trust director; or 2. Inform or give advice to a settlor, beneficiary, trustee, or trust director concerning an instance in which the trustee might have acted differently tha…

The terms of a trust may relieve a cotrustee from duty and liability with respect to another cotrustee's exercise or nonexercise of a power of the other cotrustee to the same extent that in a directed trust a directed trustee is relieved from duty and liability with respect to a …

(1) An action against a trust director for breach of trust shall be commenced within the same limitation period as under KRS 386B.10-050 for an action for breach of trust against a trustee in a like position and under similar circumstances. (2) A report or accounting has the same…

In an action against a trust director for breach of trust, the director may assert the same defenses a trustee in a like position and under similar circumstances could assert in an action for breach of trust against the trustee.

(1) By accepting appointment as a trust director of a trust subject to the provisions of KRS 386B.12-010 to 386B.12-170, the director submits to personal jurisdiction of the courts of this Commonwealth regarding any matter related to a power or duty of the director. (2) This sect…

Unless the terms of a trust provide otherwise, the rules applicable to a trustee apply to a trust director regarding the following matters: (1) Acceptance under KRS 386B.7-010; (2) Giving of bond to secure performance under KRS 386B.7-020; (3) Reasonable compensation under KRS 38…

In applying and construing KRS 386B.12-010 to 386B.12-170, 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.12-010 to 386B.12-170 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 15 U.S.C. sec. 7001(c) or authorize electronic de…

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…

As used in this subchapter: (1) "Appointive property" means the property or property interest subject to a power of appointment; (2) "Ascertainable standard" means the same as in KRS 386B.1-010; (3) "Authorized fiduciary" means: (a) A trustee or other fiduciary, other than a sett…

(1) Except as otherwise provided in subsections (2) and (3) of this section, the provisions of KRS 386B.13-010 to 386B.13-280 shall apply to an express trust that is irrevocable or revocable by the settlor only with the consent of the trustee or a person holding an adverse intere…

(1) In exercising the decanting power, an authorized fiduciary shall act in accordance with its fiduciary duties, including the duty to act in accordance with the purposes of the first trust. (2) KRS 386B.13-010 to 386B.13-280 do not create or imply a duty to exercise the decanti…

KRS 386B.13-010 to 386B.13-280 shall apply to a trust created before, on, or after July 15, 2026, which: (1) Has its principal place of administration in this Commonwealth, including a trust whose principal place of administration has been changed to this Commonwealth; or (2) Pro…

A trustee or other person that reasonably relies on the validity of a distribution of part or all of the property of a trust to another trust, or a modification of a trust, under KRS 386B.13-010 to 386B.13-280, statutes of this Commonwealth other than KRS 386B.13- 010 to 386B.13-…

(1) A notice period in this section begins on the day notice is given under subsection (3) of this section and ends fifty-nine (59) days after the day notice is given. (2) Except as otherwise provided in KRS 386B.13-010 to 386B.13-280, an authorized fiduciary may exercise the dec…

(1) Notice to a person with authority to represent and bind another person under a first- trust instrument or the provisions of this chapter has the same effect as notice given directly to the person represented. (2) Consent of or waiver by a person with authority to represent an…

(1) On application of an authorized fiduciary, a person entitled to notice under KRS 386B.13-060(3), a beneficiary, or with respect to a charitable interest, the Attorney General or other person that has standing to enforce the charitable interest, the court may: (a) Provide inst…

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) 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…