{"data":{"id":"us-ky/krs-381.225","jurisdiction":"us-ky","citation":"KRS 381.225","heading":"Permissible period of power of alienation under trust -- Future interest.","body":"(1) (a) A future interest or trust is void if it suspends the power of alienation for\nlonger than the permissible period. The power of alienation is the power to\nconvey to another an absolute fee in possession of land, or full ownership of\npersonalty. The permissible period is within twenty -one (21) years after the\ndeath of an individual or individuals then alive.\n(b) If the settlor of an inter vivos trust has an unlimit ed power to revoke, the\npermissible period is computed from the termination of that power.\n(c) If a future property interest or trust is created by exercise of a power of\nappointment, the permissible period is computed from the time the power is\nexercised if the power is a general power exercisable in favor of the donee, the\ndonee's estate, the donee's creditors, or the creditors of the donee's estate,\nwhether or not it is exercisable in favor of others, and even if the general\npower is exercisable only by will; in the case of other powers, the permissible\nperiod is computed from the time the power is created, unless the instrument\nexercising the power provides that the period is computed from the date the\npower is irrevocably exercised, but facts at the time the power is exercised are\nconsidered in determining whether the power of alienation is suspended\nbeyond the death of an individual or individuals alive at the time of creation of\nthe power plus twenty-one (21) years.\n(2) The power of alienation is suspe nded when there are no persons who, alone or in\ncombination with others, can convey an absolute fee in possession of land, or full\nownership of personalty.\n(3) There is no suspension of the power of alienation by a trust or by equitable interests\nunder a trust if the trustee has power to sell, either expressed or implied, or if there\nis a power to terminate the trust by distributing the property subject to the trust to\nthe beneficiaries in fee simple in one (1) or more persons then living.\n(4) This section does not apply to limit any of the following:\n(a) Transfers, outright or in trust, for charitable purposes;\n(b) Transfers to one (1) or more charitable organizations as described in 26\nU.S.C. secs. 170(c), 2055(a), and 2522(a), or any similar statute;\n(c) A future interest or a power of appointment arising out of a nondonative\ntransfer, except a nonvested property interest or a power of appointment\narising out of:\n1. A premarital or post-marital agreement;\n2. A separation or divorce settlement;\n3. An arrangement similar to subparagraph 1. or 2. of this paragraph arising\nout of a prospective, existing, or previous marital relationship between\nthe parties;\n4. A contract to make or revoke a will or trust;\n5. A contract to exercise or not to exercise a power of appointment;\n6. A transfer in satisfaction of a duty of support; or\n7. A reciprocal transfer;\n(d) A transfer to a trust or other property arrangement forming part of a pension,\nprofit-sharing, stock bonus, health, disability, death benefit, income  deferral,\nor other current or deferred benefit plan for one (1) or more employees,\nindependent contractors, or their beneficiaries or spouses, to which\ncontributions are made for the purposes of distributing to or for the benefit of\nthe participants or th eir beneficiaries or spouses the property, income, or\nprincipal in the trust or other property arrangement; or\n(e) A property interest, power of appointment, or arrangement that was not\nsubject to the common law rule against perpetuities or is excluded by another\nstatute of this Commonwealth.","path":["KRS Chapter 381"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=50147","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:10Z","sha256":"687cde771c9181523a4117e00f0675e5731c23c10c33e99099eaeef362052a16","source_id":"us-ky","stale":false,"prev":"us-ky/krs-381.224","next":"us-ky/krs-381.226"},"notice":"GroundRules: Original legal text. Not legal advice."}