{"data":{"id":"us-ky/krs-386.617","jurisdiction":"us-ky","citation":"KRS 386.617","heading":"Revocability of trusts.","body":"A qualified trust shall not be deemed revocable on account of its inclusion of one (1) or\nmore of the following:\n(1) A transferor's power to veto a distribution from the trust;\n(2) A power of appointment, other than a power to appoint to the transferor, th e\ntransferor's creditors, the transferor's estate, or the creditors of the transferor's\nestate, either exercisable by written instrument of the transferor during the\ntransferor's life or exercisable by will or other written instrument of the transferor\neffective upon the transferor's death;\n(3) The transferor's potential or actual receipt of income, including rights to the income\nretained in the trust;\n(4) The transferor's potential or actual receipt of income or principal from a charitable\nremainder unitrust or charitable remainder annuity trust as those terms are defined\nin 26 U.S.C. sec. 664 or any successor provision;\n(5) The transferor's receipt each year of an amount specified in the trust, the amount not\nto exceed five percent (5%) of the initial valu e of the trust or its value determined\nfrom time to time pursuant to the trust;\n(6) The transferor's potential or actual receipt or use of principal if the potential or\nactual receipt or use of principal would be the result of a qualified trustee's or\nqualified trustees' acting:\n(a) In the qualified trustee's or trustees' discretion. For purposes of this\nsubsection, a qualified trustee is presumed to have discretion with respect to\nthe distribution of principal unless the discretion is expressly denied to t he\ntrustee by the terms of the trust;\n(b) Pursuant to a standard that governs the distribution of principal and does not\nconfer upon the transferor a power to consume, invade, or appropriate\nproperty for the benefit of the transferor, unless the power of t he transferor is\nlimited by an ascertainable standard relating to the health, education, support,\nor maintenance within the meaning of 26 U.S.C. sec. 2041(b)(1)(A) or\n2514(c)(1), as amended; or\n(c) At the direction of an advisor described in KRS 386.611 who is acting:\n1. In the advisor's discretion; or\n2. Pursuant to a standard that governs the distribution of principal and does\nnot confer upon the transferor a power to consume, invade, or\nappropriate property for the benefit of the transferor, unless the power of\nthe transferor is limited by an ascertainable standard relating to the\nhealth, education, support, or maintenance within the meaning of 26\nU.S.C. sec. 2041(b)(1)(A) or 2514(c)(1), as amended;\n(7) The transferor's right to remove a trustee or advisor and to appoint a new trustee or\nadvisor; provided, however, that the right shall not include the appointment of a\nperson who is a related or subordinate party with respect to the transferor within  the\nmeaning of 26 U.S.C. sec. 672(c) or any successor provision;\n(8) The transferor's potential or actual use of real property held under a qualified\npersonal residence trust within the meaning of the term as described in 26 U.S.C.\nsec. 2702(c) or any successor provision;\n(9) The transferor's potential or actual receipt of income or principal to pay, in whole or\nin part, income taxes due on income of the trust if the potential or actual receipt of\nincome or principal is pursuant to a provision in the trust  instrument that expressly\npermits a distribution to the transferor as reimbursement for such taxes and if the\ndistribution would be the result of a qualified trustee's or qualified trustees' acting:\n(a) In the qualified trustee's or trustees' discretion o r pursuant to a mandatory\ndirection in the trust instrument; or\n(b) At the direction of an advisor described in KRS 386.611 who is acting in that\nadvisor's discretion;\n(10) The ability, whether pursuant to direction in the qualified trust or discretion of a\nqualified trustee to pay, after the death of the transferor, all or any part of the debts\nof the transferor outstanding at the time of the transferor's death, the expenses of\nadministering the transferor's estate, or any estate or inheritance tax imposed  on or\nwith respect to the transferor's estate; or\n(11) A qualified trustee's or qualified trustees' authority to make distributions to pay\ntaxes in lieu of or in addition to the power to make a distribution for taxes pursuant\nto subsection (3), (6), (9),  or (10) of this section by direct payment to taxing\nauthorities.","path":["KRS Chapter 386"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57731","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:17Z","sha256":"1eb8620eaeb60e799c15b81f38f3ae91a910cc453ffcbd0b92e07a89001c7076","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386.615","next":"us-ky/krs-386.619"},"notice":"GroundRules: Original legal text. Not legal advice."}