KRS 386B.4-110: Modification or termination of noncharitable irrevocable trust by

consent.

(1) Except as otherwise provided in the terms of the trust, a noncharitable irrevocable

trust may be modified or terminated upon consent of the settlor and all

beneficiaries, without court approval, even if the modification or termination is

inconsistent with a material purpose of the trust. A settlor's power to consent to a

trust's modification or termination may be exercised:

(a) By an agent under a power of attorney only t o the extent expressly authorized

by the power of attorney and not prohibited by the terms of the trust;

(b) By the settlor's conservator with the approval of the court supervising the

conservatorship if an agent is not so authorized and the conservator is not

prohibited by the terms of the trust; or

(c) By the settlor's guardian with the approval of the court supervising the

guardianship if an agent is not so authorized and a conservator has not been

appointed and the guardian is not prohibited by the terms of the trust.

(2) A noncharitable irrevocable trust may be terminated upon consent of all of the

beneficiaries if the court concludes that continuance of the trust is not necessary to

achieve any material purpose of the trust. A noncharitable irrevocable trust may be

modified upon consent of all of the beneficiaries if the court concludes that

modification is not inconsistent with a material purpose of the trust.

(3) A spendthrift provision in the terms of the trust is not presumed to constitute a

material purpose of the trust.

(4) Upon termination of a trust under subsection (1) or (2) of this section, the trustee

shall distribute the trust property as agreed by the beneficiaries.

(5) If not all of the beneficiaries consent to a proposed modification or t ermination of

the trust under subsection (1) or (2) of this section, the modification or termination

may be approved by the court if the court is satisfied that:

(a) If all of the beneficiaries had consented, the trust could have been modified or

terminated under this section; and

(b) The interests of a beneficiary who does not consent will be adequately

protected.

(6) Subsection (1) of this section shall not apply to the following types of trusts:

(a) First-party special needs or supplemental trusts created under KRS 387.855 to

387.910;

(b) Trusts created under 42 U.S.C. sec. 1396p(d)(4)(A);

(c) Trusts created under 42 U.S.C. sec. 1396p(d)(4)(C);

(d) Trusts created under 42 U.S.C. sec. 1396p(c)(2)(B); and

(e) Third-party special needs or supplemental trusts established by a will, trust, or

similar document and created under the common law or any other law of the

Commonwealth.

(7) The District Court shall have exclusive jurisdiction over matters under subsection

(2) of this section.