KRS 386.468: Distribution from trust or estate.

A trustee shall allocate to income an amount received as a distribution of income from a

trust or an estate in which the trust has an interest other than a purchased interest, and

shall allocate to principal an amount received as a distribution of principa l from such a

trust or estate. If a trustee purchases an interest in a trust that is an investment entity, or a

decedent or donor transfers an interest in such a trust to a trustee, KRS 386.466 applies to

a receipt from the trust.