KRS 386B.5-030: Discretionary trusts -- Effect of standard.

(1) As used in this section, "child" includes any person for whom an order or judgment

for child support has been entered in this Commonwealth or another state.

(2) Except as otherwise provided in subsection (3) of this subsection, whether or not a

trust contains a spendthrift provision, a creditor of a beneficiary may not compel a

distribution that is subject to the trustee's discretion, even if:

(a) The discretion is expressed in the form of a standard of distribution; or

(b) The trustee has abused the discretion.

(3) To the extent a trustee has not complied with a standard of distribution or has

abused a discretion:

(a) A distribution may be ordered by the court to satisfy a judgment or court order

against the beneficiary for support or maintenance of the ben eficiary's child or

spouse; and

(b) The court shall direct the trustee to pay to the child or spouse such amount as

is equitable under the circumstances, but not more than the amount the trustee

would have been required to distribute to or for the benefit of the beneficiary

had the trustee complied with the standard or not abused the discretion.

(4) This section shall not limit the right of a beneficiary to maintain a judicial

proceeding against a trustee for an abuse of discretion or failure to comply with a

standard for distribution.

(5) If the trustee's or cotrustee's discretion to make distributions for the trustee's or

cotrustee's own benefit is limited by an ascertainable standard, a creditor may not

reach or compel distribution of the beneficial inter est, except to the extent the

interest would be subject to the creditor's claim were the beneficiary not acting as

trustee or cotrustee.