{"data":{"id":"us-ky/krs-386.492","jurisdiction":"us-ky","citation":"KRS 386.492","heading":"Disbursement from principal.","body":"(1) A trustee shall make the following disbursements from principal:\n(a) That portion of the regular compensation of the trustee and any person\nproviding investment advisory or custodial services to the trustee not paid\nfrom income under KRS 386.490(1);\n(b) The remaining one -half (1/2) of the disbursements described in KRS\n386.490(2);\n(c) All of the trustee's compensation calculated on principal as a fee for\nacceptance, distribution, or termination, and disbursements made to prepare\nproperty for sale;\n(d) Payments on the principal of a trust debt;\n(e) Expenses of a proceeding that concerns primarily principal, including a\nproceeding to construe the trust or to protect the trust or its property;\n(f) Premiums paid on a policy of insurance not described in KRS 386. 490(4) of\nwhich the trust is the owner and beneficiary;\n(g) Estate, inheritance, and other transfer taxes, including penalties, apportioned\nto the trust; and\n(h) Disbursements related to environmental matters, including reclamation,\nassessing environmental conditions, remedying and removing environmental\ncontamination, monitoring remedial activities and the release of substances,\npreventing future releases of substances, collecting amounts from persons\nliable or potentially liable for the costs of those act ivities, penalties imposed\nunder environmental laws or regulations and other payments made to comply\nwith those laws or regulations, statutory or common law claims by third\nparties, and defending claims based on environmental matters.\n(2) If a principal asset is encumbered with an obligation that requires income from that\nasset to be paid directly to the creditor, the trustee shall transfer from principal to\nincome an amount equal to the income paid to the creditor in reduction of the\nprincipal balance of the obligation.","path":["KRS Chapter 386"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=35938","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:16Z","sha256":"fe47284246b1ce39dc8d861d2df8575fb78ec2e937b90ea1aebb77d06aa034ca","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386.490","next":"us-ky/krs-386.494"},"notice":"GroundRules: Original legal text. Not legal advice."}