Exceptions to application of subchapter
KRS 386B.12-040
in effect386B.12-040. Exceptions to application of subchapter
(1) As used in this section, "power of appointment" means a power that enables a person acting in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of appointment over trust property.
(2) The provisions of KRS 386B.12-010 to 386B.12-170 shall not apply to a:
(a) Power of appointment;
(b) Power to appoint or remove a trustee or trust director;
(c) Power of a settlor over a trust to the extent the settlor has a power to revoke the trust;
(d) Power of a beneficiary over a trust to the extent the exercise or nonexercise of the power affects the beneficial interest of: 1. The beneficiary; or 2. Another beneficiary represented by the beneficiary under KRS 386B.3- 010 to 386B.3-050 with respect to the exercise or nonexercise of the power; or
(e) Power over a trust if: 1. The terms of the trust provide that the power is held in a nonfiduciary capacity; and 2. The power must be held in a nonfiduciary capacity to achieve the settlor's tax objectives under the United States Internal Revenue Code of 1986, as amended, and regulations issued thereunder, as amended.
(3) Unless the terms of a trust provide otherwise, a power granted to a person to designate a recipient of an ownership interest in or power of appointment over trust property which is exercisable while the person is not serving as a trustee is a power of appointment and not a power of direction.
Effective: July 15, 2026
History: Created 2026 Ky. Acts ch. 134, sec. 73, effective July 15, 2026.
Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57736Fetched: 10/20/2026