386.458 Distribution to residuary and remainder beneficiaries.

356 words·~2 min read·/ky/chapter-386/386-458

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

(1)Each beneficiary described in KRS 386.456(4) is entitled to receive a portion of the

net income equal to the beneficiary's fractional interest in undistributed principal

assets, using values as of the distribution date. If a fiduciary makes more than one

(1)distribution of assets to beneficiaries to whom this section applies, each

beneficiary, including one

(1)who shall not receive part of the distribution, is

entitled, as of each distribution date, to the net income the fiduciary has received

after the date of the death or terminating event or earlier distribution date but has

not distributed as of the current distribution date.

(2)In determining a beneficiary's share of net income, the following rules apply:

(a)The beneficiary is entitled to receive a portion of the net income equal to the

beneficiary's fractional interest in the undistributed principal assets

immediately before the distribution date, including assets that later may be

sold to meet principal obligations.

(b)The beneficiary's fractional interest in the undistributed principal assets shall

be calculated without regard to property specifically given to a beneficiary and

property required to pay pecuniary amounts not in trust.

(c)The beneficiary's fractional interest in the undistributed principal assets shall

be calculated on the basis of the aggregate value of those assets as of the

distribution date without reducing the value by an unpaid principal obligation.

(d)The distribution date for purposes of this section may be the date as of which

the fiduciary calculates the value of the assets if that date is reasonably near

the date on which assets are actually distributed.

(3)If a fiduciary does not distribute all of the collected but undistributed net income to

each person as of a distribution date, the fiduciary shall maintain appropriate

records showing the interest of each beneficiary in that net income.

(4)A fiduciary may apply the rules in this section, to the extent that the fiduciary

considers it appropriate, to net gain or loss realized after the date of death or

terminating event or earlier distribution date from the disposition of a principal

asset if this section applies to the income from the asset.