Kentucky Statutes 386B.8-170 – Distribution upon termination
Current as of: 2024 | Check for updates
|
Other versions
(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 thirty (30) days after the proposal was sent, but only if the proposal informed the beneficiary of the right to object and of the time allowed for objection.
(2) Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to it, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes.
(3) A release by a beneficiary of a trustee from liability for breach of trust is invalid to the extent:
(a) It was induced by improper conduct of the trustee; or
(b) The beneficiary, at the time of the release, did not know of the beneficiary’s rights or of the material facts relating to the breach.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 25, sec. 76, effective July 15, 2014.
(2) Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to it, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes.
Terms Used In Kentucky Statutes 386B.8-170
- 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 - Property: means anything that may be the subject of ownership, whether legal or equitable, or any interest therein. 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
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes an original, additional, and successor trustee, and a cotrustee. See Kentucky Statutes 386B.1-010
(3) A release by a beneficiary of a trustee from liability for breach of trust is invalid to the extent:
(a) It was induced by improper conduct of the trustee; or
(b) The beneficiary, at the time of the release, did not know of the beneficiary’s rights or of the material facts relating to the breach.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 25, sec. 76, effective July 15, 2014.