KRS 381.226: Applicability of KRS 381.224 and 381.225 to property interests and powers

of appointment -- Construction of provisions requiring vesting within period

provided by common law rule against perpetuities.

(1) Except as provided in subsection (2) of this section, KRS 381.224 and 381.225 shall

apply to:

(a) A future property interest or a power of appointment that is created on or after

July 15, 2010, including a property interest or power of appointment created

pursuant to the exercise of a power o f appointment under an instrument

executed prior to July 15, 2010; or

(b) A future property interest or a power of appointment:

1. That is created pursuant to the laws of any state that does not have a rule

against perpetuities in force;

2. That is not cov ered by any previously existing rule against perpetuities;

and

3. To which, after July 15, 2010, the laws of this state are made applicable

by transfer of the situs of a trust to Kentucky, by a change in the law

governing a trust instrument to Kentucky law, or otherwise.

(2) With respect to a nonvested property interest or a power of appointment created

either before or after July 15, 2010, which is determined in a judicial proceeding

commenced on or after July 15, 2010, to violate Kentucky's rule against perpetuities

as that rule existed at the time the interest or power was created, a court upon the

petition of an interested person may reform the disposition in the manner that most

closely approximates the transferor's manifested plan of disposition and is within

the limits of the rule against perpetuities applicable when the nonvested property

interest or power of appointment was created.

(3) For purposes of this section only, a future property interest or a power of

appointment is created when the power is irrevocably exercised or when a revocable

exercise becomes irrevocable.

(4) An instrument which contains a provision requiring the vesting of all interests

created by the instrument within the period provided by the common law rule

against perpetuities s hall be construed as requiring the interests to vest within the

period specified by this section and KRS 381.224 and 381.225, unless the provision

is determined by a court to have been included in the instrument for reasons other

than protecting the intere st against a violation of the common law rule against

perpetuities. For purposes of this subsection, the term "common law rule against

perpetuities" shall include KRS 381.215, 381.216, and 381.217 prior to their repeal

on July 15, 2010. This subsection doe s not apply to any interest in property created

by the exercise of the special power of appointment granted by an instrument that

was irrevocable on September 25, 1985.