KRS 381.225: Permissible period of power of alienation under trust -- Future interest.

(1) (a) A future interest or trust is void if it suspends the power of alienation for

longer than the permissible period. The power of alienation is the power to

convey to another an absolute fee in possession of land, or full ownership of

personalty. The permissible period is within twenty -one (21) years after the

death of an individual or individuals then alive.

(b) If the settlor of an inter vivos trust has an unlimit ed power to revoke, the

permissible period is computed from the termination of that power.

(c) If a future property interest or trust is created by exercise of a power of

appointment, the permissible period is computed from the time the power is

exercised if the power is a general power exercisable in favor of the donee, the

donee's estate, the donee's creditors, or the creditors of the donee's estate,

whether or not it is exercisable in favor of others, and even if the general

power is exercisable only by will; in the case of other powers, the permissible

period is computed from the time the power is created, unless the instrument

exercising the power provides that the period is computed from the date the

power is irrevocably exercised, but facts at the time the power is exercised are

considered in determining whether the power of alienation is suspended

beyond the death of an individual or individuals alive at the time of creation of

the power plus twenty-one (21) years.

(2) The power of alienation is suspe nded when there are no persons who, alone or in

combination with others, can convey an absolute fee in possession of land, or full

ownership of personalty.

(3) There is no suspension of the power of alienation by a trust or by equitable interests

under a trust if the trustee has power to sell, either expressed or implied, or if there

is a power to terminate the trust by distributing the property subject to the trust to

the beneficiaries in fee simple in one (1) or more persons then living.

(4) This section does not apply to limit any of the following:

(a) Transfers, outright or in trust, for charitable purposes;

(b) Transfers to one (1) or more charitable organizations as described in 26

U.S.C. secs. 170(c), 2055(a), and 2522(a), or any similar statute;

(c) A future interest or a power of appointment arising out of a nondonative

transfer, except a nonvested property interest or a power of appointment

arising out of:

1. A premarital or post-marital agreement;

2. A separation or divorce settlement;

3. An arrangement similar to subparagraph 1. or 2. of this paragraph arising

out of a prospective, existing, or previous marital relationship between

the parties;

4. A contract to make or revoke a will or trust;

5. A contract to exercise or not to exercise a power of appointment;

6. A transfer in satisfaction of a duty of support; or

7. A reciprocal transfer;

(d) A transfer to a trust or other property arrangement forming part of a pension,

profit-sharing, stock bonus, health, disability, death benefit, income deferral,

or other current or deferred benefit plan for one (1) or more employees,

independent contractors, or their beneficiaries or spouses, to which

contributions are made for the purposes of distributing to or for the benefit of

the participants or th eir beneficiaries or spouses the property, income, or

principal in the trust or other property arrangement; or

(e) A property interest, power of appointment, or arrangement that was not

subject to the common law rule against perpetuities or is excluded by another

statute of this Commonwealth.