{"data":{"id":"us-ky/krs-386b.8-180","jurisdiction":"us-ky","citation":"KRS 386B.8-180","heading":"Duties of trustee upon termination or upon removal of trustee --","body":"Objection.\n(1) (a) When a trust terminates pursuant to the terms of the trust, the trustee may\nfollow the requirements for distribution upon termination as provided in KRS\n386B.8-170 or, if proceeding under this section, within a reasonable amount\nof time after such termination, the trustee shall provide to the qualified\nbeneficiaries a statement showing the fair market value of the net assets to be\ndistributed, a trust acco unting for the prior five (5) years and an estimate for\nany items reasonably anticipated but not yet received or disbursed, the amount\nof any fees, including trustee fees, remaining to be paid, and notice that the\ntrust is terminating. The trustee may also provide such statement and notice to\nany other person whom the trustee reasonably believes may have an interest in\nthe trust.\n(b) If, after receiving the notice and trust information described in paragraph (a)\nof this subsection, a qualified beneficiary o bjects to an action or omission\ndisclosed, he or she shall provide written notice of the objection to the trustee\nwithin forty-five (45) days of the notice having been sent by the trustee. If no\nwritten objection is provided within the forty -five (45) day time period, the\ninformation provided pursuant to paragraph (a) of this subsection shall be\nconsidered approved by the recipient and the trustee shall, within a reasonable\nperiod of time following the expiration of such period, distribute the assets as\nprovided in the trust. If the trustee receives a written objection within the\napplicable forty-five (45) day time period, the trustee may:\n1. Submit the written objection to the District Court for resolution and\ncharge the expense of commencing such a proceeding to the trust; or\n2. Resolve the objection with the qualified beneficiary, whether by\nnonjudicial settlement agreement or otherwise. Any agreement entered\ninto pursuant to this paragraph may include a release, an indemnity\nclause, or both on the part of  the beneficiary against the trustee relating\nto the trust. If the parties agree to a nonjudicial settlement agreement,\nany related expenses shall be charged to the trust.\nUpon a resolution of an objection pursuant to subparagraph 1. or 2. of this\nparagraph, within a reasonable period of time thereafter the trustee shall\ndistribute the remaining trust assets as provided in the trust.\n(c) The trustee may rely upon the written statement of a person receiving notice\nthat such person does not object.\n(2) (a) When a trustee is removed or resigns pursuant to the terms of the trust, the\ntrustee may follow the requirements for distribution upon termination as\nprovided in KRS 386B.8 -170 or, if proceeding under this section, the trustee,\nwithin a reasonable time afte r such removal or resignation, shall provide to\nthe successor trustee a statement showing the net assets to be distributed, a\ntrust accounting for the prior five (5) years, an estimate for any items\nreasonably anticipated but not yet received or disbursed,  the amount of any\nfees, including trustee fees, remaining to be paid, and notice that the trustee\nhas resigned or been removed. The trustee may also provide such statement\nand notice to any other person whom trustee reasonably believes may have an\ninterest in the trust.\n(b) Any person provided notice and trust information as described in paragraph\n(a) of this subsection who objects to an action or omission disclosed shall\nprovide written notice of the objection to the trustee within forty -five (45)\ndays of the notice having been sent by the trustee. If no written objection is\nprovided within the forty -five (45) day time period, the information provided\npursuant to paragraph (a) of this subsection will be considered approved, and\nthe trustee shall, within a reasonable period following the expiration of such\nforty-five (45) day period, distribute the assets to the successor trustee. If the\ntrustee receives a written objection within the applicable forty -five (45) day\ntime period, the trustee may:\n1. Submit the written objection to the District Court for resolution and\ncharge the expense of commencing such a proceeding to the trust; or\n2. Resolve the objection with the opposing party, whether by nonjudicial\nsettlement agreement or otherwise. Any agreement entered into pursuant\nto this paragraph may include a release, an indemnity clause, or both on\nthe part of the opposing party against the trustee relating to the trust. If\nthe parties agree to a nonjudicial settlement agreement, any related\nexpenses shall be charged to the trust.\nUpon a resolution of any objection raised by an opposing party pursuant to\nsubparagraph 1. or 2. of this paragraph, within a reasonable period of time\nthereafter the trustee shall distribute the remaining trust assets as provi ded in\nthe trust.\n(c) The trustee may rely upon the written statement of a person receiving notice\nthat such person does not object.\n(3) When a trustee distributes assets of the trust pursuant to subsection (1) or (2) of this\nsection, the limitations in KR S 386B.6 -040 and 386B.10 -050 are waived by each\nperson who received notice and either consented or failed to object pursuant to this\nsection, and any such person is barred from bringing a claim against the trustee for\nbreach of trust or challenging the val idity of the trust, to the same extent and with\nthe same preclusive effect as if the court had entered a final order approving the\ntrustee's final account.\n(4) Notice provided under subsection (1) or (2) of this section shall clearly warn of the\nimpending bar of claims against a trustee under KRS 386B.6 -040 and 386B.10-050\nthat will result if an objection is not timely made.\n(5) No trustee trust shall request that any beneficiary indemnify the trustee against loss\nin exchange for the trustee forgoing a requ est to the court to approve its accounts at\nthe time the trust terminates or at the time the trustee is removed or resigns, except\nas agreed upon by the parties pursuant to paragraph (b)1. or 2. of subsections (1)\nand (2) of this section.\n(6) For purposes of this section, a termination of a trust under Subchapter 4 of KRS\nChapter 386B shall be considered a termination pursuant to the trust terms.\n(7) The District Court shall have exclusive jurisdiction over matters under this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57785","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:19Z","sha256":"b21c81f7b5477ce955b04ec43f31463ae2ba116f2f6c51abc6d8964af78ddf97","source_id":"us-ky","stale":false,"prev":"us-ky/krs-386b.8-170","next":"us-ky/krs-386b.9-010"},"notice":"GroundRules: Original legal text. Not legal advice."}