381.226 Applicability of KRS 381.224 and 381.225 to property interests and powers
437 words·~2 min read·
/ky/381-226A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
of appointment -- Construction of provisions requiring vesting within period
provided by common law rule against perpetuities.
(1)Except as provided in subsection
(2)of this section, KRS 381.224 and 381.225 shall
apply to:
(a)A future property interest or a power of appointment that is created on or after
July 15, 2010, including a property interest or power of appointment created
pursuant to the exercise of a power of appointment under an instrument
executed prior to July 15, 2010; or
(b)A future property interest or a power of appointment:
1. That is created pursuant to the laws of any state that does not have a rule
against perpetuities in force;
2. That is not covered by any previously existing rule against perpetuities;
and
3. To which, after July 15, 2010, the laws of this state are made applicable
by transfer of the situs of a trust to Kentucky, by a change in the law
governing a trust instrument to Kentucky law, or otherwise.
(2)With respect to a nonvested property interest or a power of appointment created
either before or after July 15, 2010, which is determined in a judicial proceeding
commenced on or after July 15, 2010, to violate Kentucky's rule against perpetuities
as that rule existed at the time the interest or power was created, a court upon the
petition of an interested person may reform the disposition in the manner that most
closely approximates the transferor's manifested plan of disposition and is within
the limits of the rule against perpetuities applicable when the nonvested property
interest or power of appointment was created.
(3)For purposes of this section only, a future property interest or a power of
appointment is created when the power is irrevocably exercised or when a revocable
exercise becomes irrevocable.
(4)An instrument which contains a provision requiring the vesting of all interests
created by the instrument within the period provided by the common law rule
against perpetuities shall be construed as requiring the interests to vest within the
period specified by this section and KRS 381.224 and 381.225, unless the provision
is determined by a court to have been included in the instrument for reasons other
than protecting the interest against a violation of the common law rule against
perpetuities. For purposes of this subsection, the term "common law rule against
perpetuities" shall include KRS 381.215, 381.216, and 381.217 prior to their repeal
on July 15, 2010. This subsection does not apply to any interest in property created
by the exercise of the special power of appointment granted by an instrument that
was irrevocable on September 25, 1985.