KRS 386B.1-090: Nonjudicial settlement agreements.

(1) For purposes of this section, "interested persons" means persons whose consent

would be required to achieve a binding settlement were the settlement to be

approved by the court.

(2) Except as otherwise provided in subsection (3) of this section, interested persons

may enter into a binding nonjudicial settlement agreement with respect to any

matter involving a trust. This procedure is not intended to foreclose or limit any

other avenue of settlement under the laws of this Commonwealth.

(3) A nonjudicial sett lement agreement is valid only to the extent it does not violate a

material purpose of the trust and includes conditions that could be properly

approved by the court under this chapter or other applicable law.

(4) Matters that may be resolved by a nonjudicial settlement agreement include:

(a) The interpretation or construction of the terms of the trust;

(b) The approval of a trustee's report or accounting;

(c) Direction to a trustee to refrain from performing a particular act or the grant to

a trustee of any necessary or desirable power;

(d) The resignation or appointment of a trustee and the determination of a trustee's

compensation;

(e) Transfer of a trust's principal place of administration; and

(f) Liability of a trustee for an action relating to the trust.

(5) Any interested person may request the court to approve a nonjudicial settlement

agreement, to determine whether the representation under Subchapter 3 of this

chapter was adequate, and to determine whether the agreement contains conditions

the court could have properly approved.

(6) The District Court shall have exclusive jurisdiction over matters under this section.