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

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.

KRS 386A.1-010 to 386A.10-040 may be cited as the "Kentucky Uniform Statutory Trust Act (2012)."

As used in this chapter, unless the context requires otherwise: (1) "Action" with respect to an act of a trustee, includes a failure to act; (2) "Ascertainable standard" means a standard relating to an individual's health, education, support, or maintenance within the meaning of …

(1) Subject to subsection (2) of this section, a person has knowledge of a fact if the person: (a) Has actual knowledge of it; (b) Has received a notice or notification of it; or (c) From all the facts and circumstances known to the person at the time in question, has reason to k…

As used in KRS 386A.1-010 to 386A.10-040: (1) "Appropriate court" means the circuit court for the county of the Commonwealth in which the statutory trust maintains its principal office or, if none, the county in which the registered office is located; (2) "Authorized foreign stat…

(1) Except as otherwise provided in the terms of the trust, this chapter governs the duties and powers of a trustee, relations among trustees, and the rights and interests of a beneficiary. (2) The terms of a trust prevail over any provision of this chapter, except: (a) The requi…

(1) Except as otherwise provided in KRS 386A.1-040(2), the governing instrument governs: (a) The management, affairs, and conduct of the business of a statutory trust; and (b) The rights, interests, duties, obligations, and powers of, and the relations among, the trustees, the be…

(1) Except as otherwise provided in subsection (2) of this section, relations among the statutory trust, the beneficial owners, and the trustees are governed by the governing instrument. To the extent the governing instrument does not otherwise provide, KRS 386A.1-010 to 386A.10-…

The common law of trusts and principles of equity supplement this chapter, except to the extent modified by this chapter or another statute of this Commonwealth.

(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…

The meaning and effect of the terms of a trust governed by this chapter are determined by: (1) The law of the jurisdiction designated in the terms unless the designation of that jurisdiction's law is contrary to a strong public policy of the jurisdiction having the most significa…

(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…

(1) Without precluding other means for establishing a connection with the designated jurisdiction, terms of a trust designating the principal place of administration are valid and controlling if: (a) A trustee's principal place of business is located in or a trustee is a resident…

(1) Notice to a person under this chapter or the sending of a document to a person under this chapter shall be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. Permissible methods of notice or for send…

(1) A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary under this chapter if the charitable organization, on the date the charitable organization's qualification is being determin…

(1) For purposes of this section, "interested persons" means persons whose consent would be required to achieve a binding settlement were the settlement to be approved by the court. (2) Except as otherwise provided in subsection (3) of this section, interested persons may enter i…

The rules of construction that apply in this Commonwealth to the interpretation of and disposition of property by will also apply as appropriate to the interpretation of the terms of a trust and the disposition of the trust property.

and as rules of construction. The doctrine of worthier title and the doctrine of reversions shall not be in force in this Commonwealth as rules of law and as rules of construction. Language in a governing instrument describing the beneficiaries of a disposition as the transferor'…

(1) As used in this section, "settlor" means a person that executes a trust instrument. The term includes a person for which a fiduciary or agent is acting. (2) A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy that …

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.

(1) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust. (2) To remedy a breach of trust that has occurred or may occur, the court may: (a) Compel the trustee to perform the trustee's duties; (b) Enjoin the trustee from committing a breach of…

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…

(1) A trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of: (a) The amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or (b) The profit the trust…

(1) A trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration of the trust, except the reasonable fee charged by the trustee, even absent a breach of trust. (2) Absent a breach of trust, a trustee is not liable to a ben…

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

In a judicial proceeding involving the administration of a trust, the court, as justice and equity may require, may award costs and expenses, including reasonable attorney's fees, to any party, to be paid by another party or from the trust that is the subject of the controversy.

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) For the purposes of this section, a "report" is an account statement or other form of written disclosure made by the trustee to the beneficiary. (2) A beneficiary may not commence a proceeding against a trustee for breach of trust more than one (1) year after the date the ben…

A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance.

If the happening of an event, including marriage, divorce, performance of educational requirements, or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss result…

(1) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: (a) Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the b…

A trustee shall not be liable to a beneficiary for breach of trust if the beneficiary, while having capacity, consented to the conduct constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach, unless: (1) The…

(1) Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity. (2) A trustee is …

(1) A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly…

(1) Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing the following information: (a) That the trust exists and the date the trust instrument was signed; (b) The iden…

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…

In applying and construing the Uniform Trust Code, as enacted in this chapter, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

The provisions of this chapter governing the legal effect, validity, or enforceability of electronic records or electronic signatures, and of contracts formed or performed with the use of such records or signatures, conform to the requirements of Section 102 of the Electronic Sig…

If any provision of this chapter or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisio…

(1) Except as otherwise provided in this chapter, on July 15, 2014: (a) This chapter applies to all trusts created before, on, or after July 15, 2014; (b) This chapter applies to all judicial proceedings concerning trusts commenced on or after July 15, 2014; (c) This chapter appl…

This chapter may be cited as the Uniform Trust Code.

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…

As used in this subchapter: (1) "Breach of trust" includes a violation by a trust director or trustee of a duty imposed on that director or trustee by the terms of the trust, the provisions of KRS 386B.12- 010 to 386B.12-170, or other law of this Commonwealth pertaining to trusts…