KRS 386.478: Insubstantial allocations not required -- When allocation presumed

insubstantial.

If a trustee determines that an allocation between principal and income required by KRS

386.480, 386.482, 386.484, or 386.486 is unsubstantial, the trustee may allocate the entire

amount to principal. An allocation is presumed to be insubstantial if:

(1) The amount of the allocation would increase or decrease net income in an

accounting period, as determined before the allocation, by less than ten percent

(10%); or

(2) The value of the asset producing the receipt for which the allocation would be made

is less than ten percent (10%) of the total value of the trust's assets at the beginning

of the accounting period.