386.452 Fiduciary duties.

308 words·~1 min read·/ky/chapter-386/386-452

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)In allocating receipts and disbursements to or between principal and income, and

with respect to any matter within the scope of Articles 2 and 3 of the Kentucky

Principal and Income Act, a fiduciary:

(a)Shall administer a trust or estate in accordance with the terms of the trust or

the will, even if there is a different provision in KRS 386.450 to 386.504;

(b)May administer a trust or estate by the exercise of a discretionary power of

administration given to the fiduciary by the terms of the trust or the will, even

if the exercise of the power produces a result different from a result required

or permitted by KRS 386.450 to 386.504;

(c)Shall administer a trust or estate in accordance with KRS 386.450 to 386.504

if the terms of the trust or the will do not contain a different provision or do

not give the fiduciary a discretionary power of administration; and

(d)Shall add a receipt or charge a disbursement to principal to the extent that

neither the terms of the trust nor KRS 386.450 to 386.504 provide a rule for

allocating the receipt or disbursement to or between principal and income.

(2)In exercising the power to adjust under KRS 386.454(1) or

(2)or a discretionary

power of administration regarding a matter within the scope of KRS 386.450 to

386.504, whether granted by the terms of a trust, a will, or KRS 386.450 to 386.504,

a fiduciary shall administer a trust or estate impartially, based on what is fair and

reasonable to all of the beneficiaries, except to the extent that the terms of the trust

or the will clearly manifest a contrary intention. Except as provided in this

subsection, determination in accordance with KRS 386.450 to 386.504 shall be

presumed to be fair and reasonable to all of the beneficiaries.