Kentucky Statutes 386.478 – Insubstantial allocations not required — When allocation presumed insubstantial
Current as of: 2024 | Check for updates
|
Other versions
If a trustee determines that an allocation between principal and income required by KRS
386.480, 386.482, 386.484, or 386.486 is unsubstantial, the trustee may allocate the entire amount to principal. An allocation is presumed to be insubstantial if:
(1) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than ten percent (10%); or
(2) The value of the asset producing the receipt for which the allocation would be made is less than ten percent (10%) of the total value of the trust’s assets at the beginning of the accounting period.
Effective: July 15, 2014
History: Amended 2014 Ky. Acts ch. 25, sec. 107, effective July 15, 2014. — Amended
2010 Ky. Acts ch. 21, sec. 13, effective July 15, 2010. — Created 2004 Ky. Acts ch.
158, sec. 15, effective January 1, 2005.
386.480, 386.482, 386.484, or 386.486 is unsubstantial, the trustee may allocate the entire amount to principal. An allocation is presumed to be insubstantial if:
Terms Used In Kentucky Statutes 386.478
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Trustee: A person or institution holding and administering property in trust.
(1) The amount of the allocation would increase or decrease net income in an accounting period, as determined before the allocation, by less than ten percent (10%); or
(2) The value of the asset producing the receipt for which the allocation would be made is less than ten percent (10%) of the total value of the trust’s assets at the beginning of the accounting period.
Effective: July 15, 2014
History: Amended 2014 Ky. Acts ch. 25, sec. 107, effective July 15, 2014. — Amended
2010 Ky. Acts ch. 21, sec. 13, effective July 15, 2010. — Created 2004 Ky. Acts ch.
158, sec. 15, effective January 1, 2005.