Uniform Directed Trust Act

KRS tit. XXXIII, ch. 386B, subch. 12

in effect

KRS 386B.12-010 Definitions for subchapter

386B.12-010. Definitions for subchapter As used in this subchapter: (1) "Breach of trust" includes a violation by a trust director or trustee of a duty imposed on that director or trustee by the terms of the trust, the provisions of KRS 386B.12- 010 to 386B.12-170, or other law of this Commonwealth pertaining to trusts; (2) "Directed trust" means a trust for which the terms of the trust grant a power of direction; (3) "Directed trustee" means a trustee that is subject to a trust director's power of direction; (4) "Person" has the same meaning as in KRS 386B.1-010; (5) "Power of direction" has the same meaning as in KRS 386B.1-010; (6) "Settlor" has the same meaning as in KRS 386B.1-010; (7) "State" has the same meaning as in KRS 386B.1-010; (8) "Terms of a trust" has the same meaning as in KRS 386B.1-010; (9) "Trust director" has the same meaning as in KRS 386B.1-010; and (10) "Trustee" has the same meaning as in KRS 386B.1-010. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 70, effective July 15, 2026.

KRS 386B.12-020 Application -- Principal place of administration

386B.12-020. Application -- Principal place of administration KRS 386B.12-010 to 386B.12-170 apply to a trust, whenever created, that has its principal place of administration in this Commonwealth, subject to the following rules: (1) If the trust was created before July 15, 2026, KRS 386B.12 -010 to 386B.12-170 apply only to a decision or action occurring on or after July 15, 2026; and (2) If the principal place of administration of the trust is changed to this Commonwealth on or after July 15, 2026, KRS 386B.12 -010 to 386B.12-170 apply only to a decision or action occurring on or after the date of the change. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 71, effective July 15, 2026.

KRS 386B.12-030 Common law and principles of equity

386B.12-030. Common law and principles of equity The common law and principles of equity supplement the provisions of KRS 386B.12- 010 to 386B.12-170, except to the extent modified by KRS 386B.12-010 to 386B.12-170 or another statute of this Commonwealth. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 72, effective July 15, 2026.

KRS 386B.12-040 Exceptions to application of subchapter

386B.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.

KRS 386B.12-050 Powers of trust director

386B.12-050. Powers of trust director (1) Subject to KRS 386B.12-060, the terms of a trust may grant a power of direction to a trust director. (2) Unless the terms of a trust provide otherwise: (a) A trust director may exercise any further power appropriate to the exercise or nonexercise of power of direction granted to the director under subsection (1) of this section; and (b) Trust directors with joint powers shall act by majority decision. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 74, effective July 15, 2026.

KRS 386B.12-060 Limitations on trust director

386B.12-060. Limitations on trust director A trust director is subject to the same rules as a trustee in a like position and under similar circumstances in the exercise or nonexercise of a power of direction or further power under KRS 386B.12-050(2)(a) regarding: (1) A payback provision in the terms of a trust necessary to comply with the reimbursement requirements of Medicaid law in Section 1917 of the Social Security Act, 42 U.S.C. sec. 1396p(d)(4)(A), as amended, and regulations issued thereunder, as amended; and (2) A charitable interest in the trust, including notice regarding the interest to the Attorney General. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 75, effective July 15, 2026.

KRS 386B.12-070 Duty and liability of trust director

386B.12-070. Duty and liability of trust director (1) Subject to subsection (2) of this section, with respect to a power of direction or further power under KRS 386B.12-050(2)(a): (a) A trust director has the same fiduciary duty and liability in the exercise or nonexercise of the power: 1. If the power is held individually, as a sole trustee in a like position and under similar circumstances; or 2. If the power is held jointly with a trustee or another trust director, as a cotrustee in like position and under similar circumstances; and (b) The terms of the trust may vary the director's duty or liability to the same extent the terms of the trust could vary the duty or liability of a trustee in a like position and under similar circumstances. (2) Unless the terms of a trust provide otherwise, if a trust director is licensed, certified, or otherwise authorized or permitted by law other than the provisions of KRS 386B.12-010 to 386B.12-170 to provide health care in the ordinary course of the director's business or practice of a profession, to the extent the director acts in that capacity, the director shall have no duty or liability under KRS 386B.12-010 to 386B.12-170. (3) The terms of a trust may impose a duty or liability on a trust director in addition to the duties and liabilities under this section. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 76, effective July 15, 2026.

KRS 386B.12-080 Duty and liability of directed trustee

386B.12-080. Duty and liability of directed trustee (1) Subject to subsection (2) of this section, a directed trustee shall take reasonable action to comply with a trust director's exercise or nonexercise of a power of direction or further power under KRS 386B.12-050(2)(a), and the trustee is not liable for the action. (2) A directed trustee shall not comply with a trust director's exercise or nonexercise of a power of direction or further power under KRS 386B.12-050 to the extent that by complying, the trustee would engage in willful misconduct. (3) An exercise of a power of direction under which a trust director may release a trustee or another trust director from liability for breach of trust is not effective if: (a) The breach involved the trustee's or other director's willful misconduct; (b) The release was induced by improper conduct of the trustee or other director in procuring the release; or (c) At the time of the release, the director did not know the material facts relating to the breach. (4) A directed trustee that has reasonable doubt about its duty under this section may petition a court with jurisdiction under Subchapter 2 of KRS Chapter 386B for instructions. (5) The terms of a trust may impose a duty or liability on a directed trustee in addition to the duties and liabilities under this section. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 77, effective July 15, 2026.

KRS 386B.12-090 Duty to provide information to trust director and trustee

386B.12-090. Duty to provide information to trust director and trustee (1) Subject to KRS 386B.12-100, a trustee shall provide information to a trust director to the extent the information is reasonably related to both: (a) The powers or duties of the trustee; and (b) The powers or duties of the director. (2) Subject to KRS 386B.12-100, a trust director shall provide information to a trustee or another trust director to the extent the information is reasonably related to both: (a) The powers or duties of the director; and (b) The powers or duties of the trustee or other director. (3) A trustee that acts in reliance on information provided by a trust director is not liable for breach of trust to the extent the breach resulted from the reliance, unless by so acting the trust director engages in willful misconduct. (4) A trust director that acts in reliance on information provided by a trustee or another trust director is not liable for a breach of trust to the extent the breach resulted from the reliance, unless by so acting the trust director engages in willful misconduct. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 78, effective July 15, 2026.

KRS 386B.12-100 No duty to monitor, inform, or advise

386B.12-100. No duty to monitor, inform, or advise (1) Unless the terms of a trust provide otherwise: (a) The trustee shall not have a duty to: 1. Monitor a trust director; or 2. Inform or give advice to a settlor, beneficiary, trustee, or trust director concerning an instance in which the trustee might have acted differently than the director; and (b) By taking an action described in paragraph (a) of this subsection, a trustee does not assume the duty excluded by paragraph (a) of this subsection. (2) Unless the terms of a trust provide otherwise: (a) The trust director shall not have a duty to: 1. Monitor a trustee or another trust director; or 2. Inform or give advice to a settlor, beneficiary, trustee, or another trust director concerning an instance in which the director might have acted differently than a trustee or another director; and (b) By taking an action described in paragraph (a) of this subsection, a trust director does not assume the duty excluded by paragraph (a) of this subsection. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 79, effective July 15, 2026.

KRS 386B.12-110 Application to cotrustee

386B.12-110. Application to cotrustee The terms of a trust may relieve a cotrustee from duty and liability with respect to another cotrustee's exercise or nonexercise of a power of the other cotrustee to the same extent that in a directed trust a directed trustee is relieved from duty and liability with respect to a trust director's power under KRS 386B.12-080, 386B.12-090, and 386B.12-100. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 80, effective July 15, 2026.

KRS 386B.12-120 Limitation of action against trust director

386B.12-120. Limitation of action against trust director (1) An action against a trust director for breach of trust shall be commenced within the same limitation period as under KRS 386B.10-050 for an action for breach of trust against a trustee in a like position and under similar circumstances. (2) A report or accounting has the same effect on the limitation period for an action against a trust director for breach of trust that the report or accounting would have under KRS 386B.10-050 in an action for breach of trust against a trustee in a like position and under similar circumstances. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 81, effective July 15, 2026.

KRS 386B.12-130 Defenses in action against trust director

386B.12-130. Defenses in action against trust director In an action against a trust director for breach of trust, the director may assert the same defenses a trustee in a like position and under similar circumstances could assert in an action for breach of trust against the trustee. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 82, effective July 15, 2026.

KRS 386B.12-140 Jurisdiction over trust director

386B.12-140. Jurisdiction over trust director (1) By accepting appointment as a trust director of a trust subject to the provisions of KRS 386B.12-010 to 386B.12-170, the director submits to personal jurisdiction of the courts of this Commonwealth regarding any matter related to a power or duty of the director. (2) This section shall not preclude other methods of obtaining jurisdiction over a trust director. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 83, effective July 15, 2026.

KRS 386B.12-150 Rules applicable to trust director

386B.12-150. Rules applicable to trust director Unless the terms of a trust provide otherwise, the rules applicable to a trustee apply to a trust director regarding the following matters: (1) Acceptance under KRS 386B.7-010; (2) Giving of bond to secure performance under KRS 386B.7-020; (3) Reasonable compensation under KRS 386B.7-080; (4) Resignation under KRS 386B.7-050; (5) Removal under KRS 386B.7-060; and (6) Vacancy and appointment of successor under KRS 386B.7-040. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 84, effective July 15, 2026.

KRS 386B.12-160 Uniformity of application and construction

386B.12-160. Uniformity of application and construction In applying and construing KRS 386B.12-010 to 386B.12-170, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 85, effective July 15, 2026.

KRS 386B.12-170 Relation of subchapter to Electronic Signatures in Global and National Commerce Act

386B.12-170. Relation of subchapter to Electronic Signatures in Global and National Commerce Act The provisions of KRS 386B.12-010 to 386B.12-170 modify, limit, or supersede the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. sec. 7001 et seq., but do not modify, limit, or supersede 15 U.S.C. sec. 7001(c) or authorize electronic delivery of any of the notices described in 15 U.S.C. sec. 7003(b). Effective: July 15, 2026 History: Created 2026 Ky. Acts ch. 134, sec. 86, effective July 15, 2026.

Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=56745Fetched: 10/20/2026