KRS 386B.1-010: Definitions for chapter.

As used in this chapter, unless the context requires otherwise:

(1) "Action" with respect to an act of a trustee, includes a failure to act;

(2) "Ascertainable standard" means a standard relating to an individual's health,

education, support, or maintenanc e within the meaning of 26 U.S.C. sec.

2041(b)(1)(A) or 26 U.S.C. sec. 2514(c)(1), as amended;

(3) "Beneficiary" means a person that:

(a) Has a present or future beneficial interest in a trust, vested or contingent; or

(b) In a capacity other than that of trustee, holds a power of appointment over

trust property;

(4) "Charitable trust" means a trust, or part of a trust, established for a charitable

purpose as described in KRS 386B.4-050(1);

(5) "Conservator" means a person appointed by the court to administ er the estate of a

minor or adult individual;

(6) "Environmental law" means a federal, state, or local law, rule, regulation, or

ordinance relating to protection of the environment;

(7) "Guardian" means a person appointed by the court, a parent, or a spouse to make

decisions regarding the support, care, education, health, and welfare of a minor or

adult individual. The term shall not include a guardian ad litem;

(8) "Interests of the bene ficiaries" means the beneficial interests provided in the terms

of the trust;

(9) "Jurisdiction," with respect to a geographic area, includes a state or country;

(10) "Person" means any individual or entity as defined in KRS 446.010;

(11) "Power of direction":

(a) Means a power over a trust granted to a person by the terms of the trust to the

extent the power is exercisable while the person is not serving as a trustee;

(b) Includes a power over the investment, management, or distribution of trust

property or other matters of trust administration; and

(c) Excludes the powers described in KRS 386B.12-040(2);

(12) "Power of withdrawal" means a presently exercisable general power of appointment

other than a power:

(a) Exercisable by a trustee and limited by an ascertainable standard; or

(b) Exercisable by another person only on the consent of the trustee or a person

holding an adverse interest;

(13) "Property" means anything that may be the subject of ownership, whether legal or

equitable, or any interest therein;

(14) "Qualified beneficiary" means a beneficiary who, on the date the beneficiary's

qualification is determined:

(a) Is a distributee or permissible distributee of trust income or principal;

(b) Would be a distributee or permissible distributee of trust income or principal

if the interests of the distributees described in paragraph (a) of this subsection

ended on that date without causing the trust to end; or

(c) Would be a distributee or permissible distributee of trust income or principal

if the trust ended on that date;

(15) "Revocable," as applied to a trust, means revocable by the settlor without the

consent of the trustee or a person holding an adverse interest;

(16) "Settlor" means a person, including a testator, who creates or contributes property

to a trust. If more than one (1) person creates or contributes property to a trust, each

person is a settlor of the part of the trust property attributable to that person's

contribution except to the extent another person has the power to revoke or

withdraw that part;

(17) "Spendthrift provision" means a term of a trust which restrains both voluntary and

involuntary transfer of a beneficiary's interest;

(18) "State" means a state of the United States, the District of Columbia, Puerto Rico,

the United States Virgin Islands, or any territory or insular possession subject to the

jurisdiction of the United States. The term includes an Indian tribe or band

recognized by federal law or formally acknowledged by a state;

(19) "Terms of a trust" means:

(a) Except as otherwise provided in paragraph (b) of this subsection, the

manifestation of the settlor's intent regarding a trust's provisions as:

1. Expressed in the trust instrument; or

2. Established by other evidence that would be admissible in a judicial

proceeding; or

(b) The trust's provisions as established, determined, or amended by:

1. A trustee or trust director in accordance with applicable law;

2. A court order; or

3. A nonjudicial settlement agreement under KRS 386B.1-090;

(20) (a) "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 describ ed income or principal beneficiary, or both.

This definition includes oral trusts.

(b) "Trust" does not include a resulting or constructive trust, a business trust

which provides for certificates to be issued to the beneficiary, an investment

trust, a voting trust, a security instrument, a trust established by the judgment

of a court, a liquidation trust, or a trust for the primary purpose of paying

dividends, interests, interest coupons, salaries, wages, pensions or profits, or

employee benefits of any kind, an instrument in which a person is nominee or

escrowee for another, a trust established in deposits in any financial

institution, or other trust the nature of which does not admit of general trust

administration;

(21) "Trust director" means a person th at is granted power of direction by the terms of a

trust to the extent the power is exercisable while the person is not serving as a

trustee. The person is a trust director whether or not the terms of the trust refer to

the person as a trust director and whether or not the person is a beneficiary or settlor

of the trust;

(22) "Trust instrument" means an instrument signed by the settlor that contains terms of

the trust, including any amendments thereto; and

(23) "Trustee" includes an original, additional, and successor trustee, and a cotrustee.