Kentucky Statutes 386B.4-020 – Requirements for creation
Current as of: 2024 | Check for updates
|
Other versions
(1) A trust is created only if:
(a) The settlor has capacity to create a trust;
(b) The settlor indicates an intention to create the trust; (c) The trust has a definite beneficiary or is:
1. A charitable trust;
2. A trust for the care of an animal under KRS § 386B.4-080; or
3. A trust for a noncharitable purpose under KRS § 386B.4-090; (d) The trustee has duties to perform; and
(e) The same person is not the sole trustee and sole beneficiary.
(2) A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 25, sec. 24, effective July 15, 2014.
(a) The settlor has capacity to create a trust;
Terms Used In Kentucky Statutes 386B.4-020
- Animal: includes every warm-blooded living creature except a human being. See Kentucky Statutes 446.010
- 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
- Person: means any individual or entity as defined in KRS §. 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
- 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
- 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
(b) The settlor indicates an intention to create the trust; (c) The trust has a definite beneficiary or is:
1. A charitable trust;
2. A trust for the care of an animal under KRS § 386B.4-080; or
3. A trust for a noncharitable purpose under KRS § 386B.4-090; (d) The trustee has duties to perform; and
(e) The same person is not the sole trustee and sole beneficiary.
(2) A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 25, sec. 24, effective July 15, 2014.