Kentucky Statutes 386B.1-030 – Default and mandatory rules
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(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 requirements for creating a trust;
(b) The duty of a trustee to act in good faith and in the interests of the beneficiaries;
(c) The requirement that a trust and its terms be for the benefit of its beneficiaries, and that the trust have a purpose that is lawful, not contrary to public policy, and possible to achieve;
(d) The power of the court to change or terminate a trust under Subchapter 4 of this chapter;
(e) The effect of a spendthrift provision and the rights of certain creditors and assignees to reach a trust as provided in Subchapter 5 of this chapter;
(f) The power of the court under KRS § 386B.7-020 to require, dispense with, or modify or terminate a bond;
(g) The power of the court under KRS § 386B.7-080(2) to adjust a trustee’s compensation as specified in the terms of the trust which is unreasonably low or high;
(h) The duty to notify and report under KRS § 386B.8-130(2);
(i) The effect of an exculpatory term under KRS § 386B.10-080;
(j) The rights under KRS § 386B.10-100, 386B.10-110, and 386B.10-120 of a person other than a trustee or beneficiary;
(k) Periods of limitation for commencing a judicial proceeding;
(l) The power of the court to take such action and exercise such jurisdiction as may be necessary in the interests of justice; and
(m) The subject-matter jurisdiction of the court and venue for commencing a proceeding as provided in KRS § 386B.2-030 and KRS § 386B.2-040.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 25, sec. 3, effective July 15, 2014.
(2) The terms of a trust prevail over any provision of this chapter, except: (a) The requirements for creating a trust;
Terms Used In Kentucky Statutes 386B.1-030
- Action: includes all proceedings in any court of this state. 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 - 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.
- Person: means any individual or entity as defined in KRS §. See Kentucky Statutes 386B.1-010
- Spendthrift provision: means a term of a trust which restrains both voluntary and involuntary transfer of a beneficiary's interest. See Kentucky Statutes 386B.1-010
- Terms of a trust: means the manifestation of the settlor's intent regarding a trust's provisions as expressed in the trust instrument or as may be established by other evidence that would be admissible in a judicial proceeding. 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
- Venue: The geographical location in which a case is tried.
(b) The duty of a trustee to act in good faith and in the interests of the beneficiaries;
(c) The requirement that a trust and its terms be for the benefit of its beneficiaries, and that the trust have a purpose that is lawful, not contrary to public policy, and possible to achieve;
(d) The power of the court to change or terminate a trust under Subchapter 4 of this chapter;
(e) The effect of a spendthrift provision and the rights of certain creditors and assignees to reach a trust as provided in Subchapter 5 of this chapter;
(f) The power of the court under KRS § 386B.7-020 to require, dispense with, or modify or terminate a bond;
(g) The power of the court under KRS § 386B.7-080(2) to adjust a trustee’s compensation as specified in the terms of the trust which is unreasonably low or high;
(h) The duty to notify and report under KRS § 386B.8-130(2);
(i) The effect of an exculpatory term under KRS § 386B.10-080;
(j) The rights under KRS § 386B.10-100, 386B.10-110, and 386B.10-120 of a person other than a trustee or beneficiary;
(k) Periods of limitation for commencing a judicial proceeding;
(l) The power of the court to take such action and exercise such jurisdiction as may be necessary in the interests of justice; and
(m) The subject-matter jurisdiction of the court and venue for commencing a proceeding as provided in KRS § 386B.2-030 and KRS § 386B.2-040.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 25, sec. 3, effective July 15, 2014.