KRS 386B.13-010: Definitions for subchapter.

As used in this subchapter:

(1) "Appointive property" means the property or property interest subject to a power of

appointment;

(2) "Ascertainable standard" means the same as in KRS 386B.1-010;

(3) "Authorized fiduciary" means:

(a) A trustee or other fiduciary, other than a settlor, tha t has discretion to

distribute or direct a trustee to distribute part or all of the principal of the first

trust to one (1) or more current beneficiaries;

(b) A special fiduciary appointed under KRS 386B.13-080; or

(c) A special needs fiduciary under KRS 386B.13-120;

(4) "Beneficiary" means a person that:

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

(b) Holds a power of appointment over trust property; or

(c) Is an identified charitable organization that will or may receive distributions

under the terms of the trust;

(5) "Charitable interest" means an interest in a trust which:

(a) Is held by an identified charitable organization and makes the organization a

qualified beneficiary;

(b) Benefits only charitable organizations and, if the interest were held by an

identified charitable organization, would make the organization a qualified

beneficiary; or

(c) Is held solely for charitable purposes and, if the interest were held by an

identified charitable organization, would make the organization a qualified

beneficiary;

(6) "Charitable organization" means:

(a) A person, other than an individual, organized and operated exclusively for

charitable purposes; or

(b) A government or governmental subdivision, agency, or instrumentality, to the

extent it holds funds exclusively for a charitable purpose;

(7) "Charitable purpose" means the relief of poverty, the advancement of education or

religion, the promotion of health, a mu nicipal or other governmental purpose, or

another purpose the achievement of which is beneficial to the community;

(8) "Court" means a court in this Commonwealth having jurisdiction in matters relating

to trusts under Subchapter 2 of this chapter;

(9) "Current beneficiary":

(a) Means a beneficiary that on the date of the beneficiary's qualification is

determined is a distributee or permissible distributee of trust income or

principal; and

(b) Includes the holder of a presently exercisable general power of a ppointment

but does not include a person that is a beneficiary only because the person

holds any other power of appointment;

(10) "Decanting power" or "the decanting power" means the power of an authorized

fiduciary under KRS 386B.12 -010 to 386B.12 -170 to distribute property of a first

trust to one (1) or more second trusts or to modify the terms of the first trust;

(11) "Expanded distributive discretion" means a discretionary power of distribution that

is not limited to an ascertainable standard or a reasonably definite standard;

(12) "First trust" means a trust over which an authorized fiduciary may exercise the

decanting power;

(13) "First-trust instrument" means the trust instrument for a first trust;

(14) "General power of appointment" means a power of appointment exercisable in

favor of a powerholder, the powerholder's estate, a creditor of the powerholder, or a

creditor of the powerholder's estate;

(15) "Jurisdiction" has the same meaning as in KRS 386B.1-010;

(16) "Person" has the same meaning as in KRS 386B.1-010;

(17) "Power of appointment":

(a) Means a power that enables a powerholder acting in a nonfiduciary capacity

to designate a recipient of an ownership interest in or another power of

appointment over the appointive property; and

(b) Does not include a power of attorney;

(18) "Powerholder" means a person in which a donor creates a power of appointment;

(19) "Presently exercisable power of appointment" means a power of appointment

exercisable by the powerholder at the relevant time and:

(a) Includes a power of appointment exercisable only after the occurrence of a

specified event, the satisfaction of an ascertainable standard, or the passage of

a specified time only after:

1. The occurrence of the specified event;

2. The satisfaction of the ascertainable standard; or

3. The passage of the specified time; and

(b) Does not include a power exercisable only at the powerholder's death;

(20) "Qualified beneficiary" has the same meaning as in KRS 386B.1-010;

(21) "Reasonably definite standard" means a clearly measurable standard under which a

holder of a power of distribution is legally accountable within the meaning of 26

U.S.C. sec. 674(b)(5)(A), as amended, and any applicable regulations;

(22) "Record" has the same meaning as in KRS 394.700;

(23) "Second-trust instrument" means the trust instrument for a second trust;

(24) "Settlor," except as otherwise provided in KRS 386B.13-240, has the same meaning

as in KRS 386B.1-010;

(25) "Sign" has the same meaning as in KRS 394.700;

(26) "State" has the same meaning as in KRS 386B.1-010;

(27) "Terms of the trust" has the same meaning as in KRS 386B.1-010; and

(28) "Trust instrument" has the same meaning as in KRS 386B.1-010.