Kentucky Statutes 386B.1-090 – Nonjudicial settlement agreements
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(1) For purposes of this section, “interested persons” means persons whose consent would be required to achieve a binding settlement were the settlement to be approved by the court.
(2) Except as otherwise provided in subsection (3) of this section, interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust. This procedure is not intended to foreclose or limit any other avenue of settlement under the laws of this Commonwealth.
(3) A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes conditions that could be properly approved by the court under this chapter or other applicable law.
(4) Matters that may be resolved by a nonjudicial settlement agreement include: (a) The interpretation or construction of the terms of the trust;
(b) The approval of a trustee‘s report or accounting;
(c) Direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power;
(d) The resignation or appointment of a trustee and the determination of a trustee’s compensation;
(e) Transfer of a trust’s principal place of administration; and
(f) Liability of a trustee for an action relating to the trust.
(5) Any interested person may request the court to approve a nonjudicial settlement agreement, to determine whether the representation under Subchapter 3 of this chapter was adequate, and to determine whether the agreement contains conditions the court could have properly approved.
(6) The District Court shall have exclusive jurisdiction over matters under this section.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 25, sec. 9, effective July 15, 2014.
(2) Except as otherwise provided in subsection (3) of this section, interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust. This procedure is not intended to foreclose or limit any other avenue of settlement under the laws of this Commonwealth.
Terms Used In Kentucky Statutes 386B.1-090
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- 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
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- 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
- Violate: includes failure to comply with. See Kentucky Statutes 446.010
(3) A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes conditions that could be properly approved by the court under this chapter or other applicable law.
(4) Matters that may be resolved by a nonjudicial settlement agreement include: (a) The interpretation or construction of the terms of the trust;
(b) The approval of a trustee‘s report or accounting;
(c) Direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power;
(d) The resignation or appointment of a trustee and the determination of a trustee’s compensation;
(e) Transfer of a trust’s principal place of administration; and
(f) Liability of a trustee for an action relating to the trust.
(5) Any interested person may request the court to approve a nonjudicial settlement agreement, to determine whether the representation under Subchapter 3 of this chapter was adequate, and to determine whether the agreement contains conditions the court could have properly approved.
(6) The District Court shall have exclusive jurisdiction over matters under this section.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 25, sec. 9, effective July 15, 2014.