{"data":{"id":"us-ky/krs-386b.13-100","jurisdiction":"us-ky","citation":"KRS 386B.13-100","heading":"Definitions for section -- Decanting power under expanded","body":"distributive discretion.\n(1) As used in this section:\n(a) \"Noncontingent right\" means a right that is not subject to the exercise of\ndiscretion or the occurrence of a specified eve nt that is not certain to occur.\nThe term does not include a right held by a beneficiary if any person has\ndiscretion to distribute property subject to the right to any person other than\nthe beneficiary or the beneficiary's estate;\n(b) \"Presumptive remainder beneficiary\" means a qualified beneficiary other than\na current beneficiary;\n(c) \"Successor beneficiary\" means a beneficiary that is not a qualified beneficiary\non the date the beneficiary's qualification is determined. The term does not\ninclude a perso n that is a beneficiary only because the person holds a\nnongeneral power of appointment; and\n(d) \"Vested interest\" means:\n1. A right to a mandatory distribution that is a noncontingent right as of the\ndate of the exercise of the decanting power;\n2. A curre nt and noncontingent right, annually or more frequently, to a\nmandatory distribution of income, a specified dollar amount, or a\npercentage of value of some or all of the trust property;\n3. A current and noncontingent right, annually or more frequently, to\nwithdraw income, a specified dollar amount, or a percentage of value of\nsome or all of the trust property;\n4. A presently exercisable general power of appointment; or\n5. A right to receive an ascertainable part of the trust property on the trust's\ntermination which is not subject to the exercise of discretion or to the\noccurrence of a specified event that is not certain to occur.\n(2) Subject to subsection (3) of this section and KRS 386B.13 -130, an a uthorized\nfiduciary that has expanded distributive discretion over the principal of a first trust\nfor the benefit of one (1) or more current beneficiaries may exercise the decanting\npower over the principal of the first trust.\n(3) Subject to KRS 386B.13 -120, in an exercise of the decanting power under this\nsection, a second trust shall not:\n(a) Include as a current beneficiary a person that is not a current beneficiary of\nthe first trust, except as otherwise provided in subsection (4) of this section;\n(b) Include as a presumptive remainder beneficiary or successor beneficiary a\nperson that is not a current beneficiary, presumptive remainder beneficiary, or\nsuccessor beneficiary of the first trust, except as otherwise provided in\nsubsection (4) of this section; or\n(c) Reduce or eliminate a vested interest.\n(4) Subject to subsection (3)(c) of this section and KRS 386B.13 -130, in an exercise of\nthe decanting power under this section, a second trust may be a trust created or\nadministered under the law of any jurisdiction and may:\n(a) Retain a power of appointment granted in the first trust;\n(b) Omit a power of appointment granted in the first trust, other than a presently\nexercisable general power of appointment;\n(c) Create or modify a power of appointment if the powerholder is a current\nbeneficiary of the first trust and the authorized fiduciary has expanded\ndistributive discretion to distribute principal to the beneficiary; and\n(d) Create or modify a power of appointment if the powerholder is a presumptive\nremainder beneficiary or successor beneficiary of the first trust, but the\nexercise of the power may take effect only after the powerholder becomes, or\nwould have become if then living, a current beneficiary.\n(5) A power of appointment described in subsection ( 4)(a) to (d) of this section may be\ngeneral or nongeneral. The class of permissible appointees in favor of which the\npower may be exercised may be broader than or different from the beneficiaries of\nthe first trust.\n(6) If an authorized fiduciary has expan ded distributive discretion over part but not all\nof the principal of a first trust, the fiduciary may exercise the decanting power\nunder this section over that part of the principal over which the authorized fiduciary\nhas expanded distributive discretion.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57759","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:20Z","sha256":"bfb9b5ae067f154f88e050377388e1d7374d7d20b409ac8277fa3730c4601a06","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386b.13-090","next":"us-ky/krs-386b.13-110"},"notice":"GroundRules: Original legal text. Not legal advice."}