{"data":{"id":"us-ky/krs-386.622","jurisdiction":"us-ky","citation":"KRS 386.622","heading":"Arrangement between spouses involving community property considered a","body":"community property trust -- Requirements for -- Provisions of written\nagreement -- Amendment or revocation of trust -- Consideration not required -\n- Classification and distribution of property.\n(1) Any arrangement between spouses involving community property shall be\nconsidered a community property trust if one (1) or both spouses transfer property\nto a trust that:\n(a) Expressly declares that the trust is a Kentucky communit y property trust that\nmeets the requirements of KRS 386.620 to 386.624;\n(b) Has at least one (1) trustee who is a qualified trustee whose powers include or\nare limited to maintaining records for the trust, on an exclusive or a\nnonexclusive basis, and prepa ring or arranging for the preparation of, on an\nexclusive or a nonexclusive basis, any income tax returns that must be filed by\nthe trust. Both spouses or either spouse may be a trustee;\n(c) Is signed by both spouses; and\n(d) Contains the following language in capital letters at the beginning of the trust:\nTHE CONSEQUENCES OF THIS TRUST MAY BE VERY EXTENSIVE,\nINCLUDING BUT NOT LIMITED TO YOUR RIGHTS WITH YOUR\nSPOUSE BOTH DURING THE COURSE OF YOUR MARRIAGE AND AT\nTHE TIME OF A DIVORCE. ACCORDINGLY, THIS AGR EEMENT\nSHOULD ONLY BE SIGNED AFTER CAREFUL CONSIDERATION. IF\nYOU HAVE ANY QUESTIONS ABOUT THIS AGREEMENT, YOU\nSHOULD SEEK COMPETENT ADVICE.\n(2) In the agreement establishing a community property trust, spouses may agree on and\nprovide in writing:\n(a) The r ights and obligations in the property transferred to the trust,\nnotwithstanding when and where the property is acquired or located;\n(b) The management and control of the property transferred to the trust;\n(c) The disposition of the property transferred to the trust on dissolution, death, or\nthe occurrence or nonoccurrence of another event;\n(d) The choice of law governing the interpretation of the trust; and\n(e) Any other matter that affects the property transferred to the trust and does not\nviolate public policy or any statute imposing a criminal penalty.\n(3) Either spouse may amend a community property trust regarding the disposition of\nthat spouse's one -half (1/2) share of the community property in the event of a\nspouse's death.\n(4) Except as provided in s ubsection (2)(a) of this section, a community property trust\nmay not be amended or revoked unless the agreement itself provides for amendment\nor revocation.\n(5) Whether or not both, one (1), or neither spouse is domiciled in this state, spouses\nmay classify any or all of their property as community property by transferring\nproperty to a community property trust and providing in the trust that the property is\ncommunity property.\n(6) A community property trust shall be enforceable without consideration.\n(7) All property owned by a community property trust shall be considered community\nproperty during marriage and the right to manage and control property that is\ntransferred to a community property trust shall be determined by the terms of the\ntrust.\n(8) When property is distributed from a community property trust, it shall no longer\nconstitute community property.","path":["KRS Chapter 386"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=49989","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:17Z","sha256":"56e854a3db708e1f05ceece5f01da9f6695bc74607cdee4378b7b187b979c3ff","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386.620","next":"us-ky/krs-386.624"},"notice":"GroundRules: Original legal text. Not legal advice."}