Kentucky Statutes 386B.4-130 – Cy pres
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(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 the settlor’s successors in interest; and
(c) The court may apply cy pres to modify or terminate the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor’s charitable purposes.
(2) A provision in the terms of a charitable trust that would result in distribution of the trust property to a noncharitable beneficiary prevails over the power of the court under subsection (1) of this section to apply cy pres to modify or terminate the trust only if, when the provision takes effect:
(a) The trust property is to revert to the settlor and the settlor is still living; or
(b) Fewer than twenty-one (21) years have elapsed since the date of the trust’s creation.
(3) The Circuit Court shall have exclusive jurisdiction over actions to identify a charitable beneficiary of a trust.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 25, sec. 35, effective July 15, 2014.
(a) The trust shall not fail, in whole or in part;
Terms Used In Kentucky Statutes 386B.4-130
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Beneficiary: means a person that:
(a) Has a present or future beneficial interest in a trust, vested or contingent. See Kentucky Statutes 386B.1-010 - Charitable trust: means a trust, or part of a trust, established for a charitable purpose as described in KRS §. See Kentucky Statutes 386B.1-010
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Property: means anything that may be the subject of ownership, whether legal or equitable, or any interest therein. See Kentucky Statutes 386B.1-010
- Settlor: means a person, including a testator, who creates or contributes property to a trust. See Kentucky Statutes 386B.1-010
- Trust: means an express trust established by a trust instrument, including a will, whereby a trustee has the duty to administer a trust asset for the benefit of a named or otherwise described income or principal beneficiary, or both. See Kentucky Statutes 386B.1-010
(b) The trust property shall not revert to the settlor or the settlor’s successors in interest; and
(c) The court may apply cy pres to modify or terminate the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor’s charitable purposes.
(2) A provision in the terms of a charitable trust that would result in distribution of the trust property to a noncharitable beneficiary prevails over the power of the court under subsection (1) of this section to apply cy pres to modify or terminate the trust only if, when the provision takes effect:
(a) The trust property is to revert to the settlor and the settlor is still living; or
(b) Fewer than twenty-one (21) years have elapsed since the date of the trust’s creation.
(3) The Circuit Court shall have exclusive jurisdiction over actions to identify a charitable beneficiary of a trust.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 25, sec. 35, effective July 15, 2014.