KRS 386B.8-180: Duties of trustee upon termination or upon removal of trustee --

Objection.

(1) (a) When a trust terminates pursuant to the terms of the trust, the trustee may

follow the requirements for distribution upon termination as provided in KRS

386B.8-170 or, if proceeding under this section, within a reasonable amount

of time after such termination, the trustee shall provide to the qualified

beneficiaries a statement showing the fair market value of the net assets to be

distributed, a trust acco unting for the prior five (5) years and an estimate for

any items reasonably anticipated but not yet received or disbursed, the amount

of any fees, including trustee fees, remaining to be paid, and notice that the

trust is terminating. The trustee may also provide such statement and notice to

any other person whom the trustee reasonably believes may have an interest in

the trust.

(b) If, after receiving the notice and trust information described in paragraph (a)

of this subsection, a qualified beneficiary o bjects to an action or omission

disclosed, he or she shall provide written notice of the objection to the trustee

within forty-five (45) days of the notice having been sent by the trustee. If no

written objection is provided within the forty -five (45) day time period, the

information provided pursuant to paragraph (a) of this subsection shall be

considered approved by the recipient and the trustee shall, within a reasonable

period of time following the expiration of such period, distribute the assets as

provided in the trust. If the trustee receives a written objection within the

applicable forty-five (45) day time period, the trustee may:

1. Submit the written objection to the District Court for resolution and

charge the expense of commencing such a proceeding to the trust; or

2. Resolve the objection with the qualified beneficiary, whether by

nonjudicial settlement agreement or otherwise. Any agreement entered

into pursuant to this paragraph may include a release, an indemnity

clause, or both on the part of the beneficiary against the trustee relating

to the trust. If the parties agree to a nonjudicial settlement agreement,

any related expenses shall be charged to the trust.

Upon a resolution of an objection pursuant to subparagraph 1. or 2. of this

paragraph, within a reasonable period of time thereafter the trustee shall

distribute the remaining trust assets as provided in the trust.

(c) The trustee may rely upon the written statement of a person receiving notice

that such person does not object.

(2) (a) When a trustee is removed or resigns pursuant to the terms of the trust, the

trustee may follow the requirements for distribution upon termination as

provided in KRS 386B.8 -170 or, if proceeding under this section, the trustee,

within a reasonable time afte r such removal or resignation, shall provide to

the successor trustee a statement showing the net assets to be distributed, a

trust accounting for the prior five (5) years, an estimate for any items

reasonably anticipated but not yet received or disbursed, the amount of any

fees, including trustee fees, remaining to be paid, and notice that the trustee

has resigned or been removed. The trustee may also provide such statement

and notice to any other person whom trustee reasonably believes may have an

interest in the trust.

(b) Any person provided notice and trust information as described in paragraph

(a) of this subsection who objects to an action or omission disclosed shall

provide written notice of the objection to the trustee within forty -five (45)

days of the notice having been sent by the trustee. If no written objection is

provided within the forty -five (45) day time period, the information provided

pursuant to paragraph (a) of this subsection will be considered approved, and

the trustee shall, within a reasonable period following the expiration of such

forty-five (45) day period, distribute the assets to the successor trustee. If the

trustee receives a written objection within the applicable forty -five (45) day

time period, the trustee may:

1. Submit the written objection to the District Court for resolution and

charge the expense of commencing such a proceeding to the trust; or

2. Resolve the objection with the opposing party, whether by nonjudicial

settlement agreement or otherwise. Any agreement entered into pursuant

to this paragraph may include a release, an indemnity clause, or both on

the part of the opposing party against the trustee relating to the trust. If

the parties agree to a nonjudicial settlement agreement, any related

expenses shall be charged to the trust.

Upon a resolution of any objection raised by an opposing party pursuant to

subparagraph 1. or 2. of this paragraph, within a reasonable period of time

thereafter the trustee shall distribute the remaining trust assets as provi ded in

the trust.

(c) The trustee may rely upon the written statement of a person receiving notice

that such person does not object.

(3) When a trustee distributes assets of the trust pursuant to subsection (1) or (2) of this

section, the limitations in KR S 386B.6 -040 and 386B.10 -050 are waived by each

person who received notice and either consented or failed to object pursuant to this

section, and any such person is barred from bringing a claim against the trustee for

breach of trust or challenging the val idity of the trust, to the same extent and with

the same preclusive effect as if the court had entered a final order approving the

trustee's final account.

(4) Notice provided under subsection (1) or (2) of this section shall clearly warn of the

impending bar of claims against a trustee under KRS 386B.6 -040 and 386B.10-050

that will result if an objection is not timely made.

(5) No trustee trust shall request that any beneficiary indemnify the trustee against loss

in exchange for the trustee forgoing a requ est to the court to approve its accounts at

the time the trust terminates or at the time the trustee is removed or resigns, except

as agreed upon by the parties pursuant to paragraph (b)1. or 2. of subsections (1)

and (2) of this section.

(6) For purposes of this section, a termination of a trust under Subchapter 4 of KRS

Chapter 386B shall be considered a termination pursuant to the trust terms.

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