{"data":{"id":"us-ky/krs-386a.6-040","jurisdiction":"us-ky","citation":"KRS 386A.6-040","heading":"Distribution to beneficial owner.","body":"(1) Any distribution by a statutory trust before dissolution shall be made in proportion\nto the beneficial interests.\n(2) When a beneficial owner becomes entitled to receive a distribution, the trust's\nindebtedness to a beneficial owner shall be at parity with  the trust's indebtedness to\nits general creditors except to the extent subordinated by agreement.\n(3) When a beneficial owner associated with a series becomes entitled to a distribution,\nthe series's indebtedness to a beneficial owner shall be at parity w ith the series's\nindebtedness to its general creditors except as subordinated by agreement.\n(4) Unless otherwise provided in a governing instrument:\n(a) A beneficial owner, regardless of the nature of the beneficial owner's\ncontribution, shall not have a right to demand and receive a distribution in any\nform other than cash; and\n(b) A beneficial owner shall not be compelled to accept a distribution of any asset\nin kind to the extent that the percentage of the asset distributed to the\nbeneficial owner exceeds the percentage that the beneficial owner would have\nshared in cash distribution equal to the value of the property at the time of\ndistribution.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=42385","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:18Z","sha256":"79d3992c26e67b7c4105af4fd869b9efa0b25f99a34f1ed34b7f4f9327e52775","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386a.6-030","next":"us-ky/krs-386a.6-050"},"notice":"GroundRules: Original legal text. Not legal advice."}