{"data":{"id":"us-ky/krs-386b.8-140","jurisdiction":"us-ky","citation":"KRS 386B.8-140","heading":"Discretionary powers -- Tax savings.","body":"(1) The judicial standard of review for a discretionary power is that the trustee shall\nexercise the power reasonably, in good faith, and in accordance with the terms and\npurposes of the trust and the interests of the beneficiaries, except that a\nreasonableness standard shall not be applied to the exercise of discretion by the\ntrustee if the terms of the trust so provide. The words \"sole,\" \"absolute,\"\n\"uncontrolled,\" or words of similar import in the absence of any standards to guide\nthe trustee in exercising i ts discretion mean that a reasonableness standard will not\napply. The greater the grant of discretion by the settlor to the trustee, the broader the\nrange of permissible conduct by the trustee in exercising it.\n(2) Subject to subsection (4) of this section , and unless the terms of the trust expressly\nindicate that a rule in this subsection shall not apply:\n(a) A person other than a settlor who is a beneficiary and trustee of a trust that\nconfers on the trustee a power to make discretionary distributions to or for the\ntrustee's personal benefit may exercise the power only in accordance with an\nascertainable standard; and\n(b) A trustee may not exercise a power to make discretionary distributions to\nsatisfy a legal obligation of support that the trustee persona lly owes another\nperson.\n(3) A power whose exercise is limited or prohibited by subsection (2) of this section\nmay be exercised by a majority of the remaining trustees whose exercise of the\npower is not so limited or prohibited. If the power of all trustee s is so limited or\nprohibited, the court may appoint a special fiduciary with authority to exercise the\npower.\n(4) Subsection (2) of this section shall not apply to:\n(a) A power held by the settlor's spouse who is the trustee of a trust for which a\nmarital deduction, as defined in 26 U.S.C. sec. 2056(b)(5) or 2523(e), as in\neffect on July 15, 2014, or as later amended, was previously allowed;\n(b) Any trust during any period that the trust may be revoked or amended by its\nsettlor; or\n(c) A trust if contribut ions to the trust qualify for the annual exclusion under 26\nU.S.C. sec. 2503(c), as in effect on July 15, 2014, or as later amended.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43136","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:19Z","sha256":"bbdbde0148862772155bb4dc041cc6690488dbc28173f5c6c5da2c33c79e19b0","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386b.8-130","next":"us-ky/krs-386b.8-150"},"notice":"GroundRules: Original legal text. Not legal advice."}