457.400 Gifts.
347 words·~2 min read·
/ky/chapter-457/457-400A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)In this section, a gift "for the benefit of" a person includes a gift to a trust, an
account under the Uniform Transfers to Minors Act (1983/1986), and a tuition
savings account or prepaid tuition plan as defined under Internal Revenue Code
Section 529, 26 U.S.C. sec. 529, as amended.
(2)Unless the power of attorney otherwise provides, language in a power of attorney
granting general authority with respect to gifts authorizes the agent only to:
(a)Make outright to, or for the benefit of, a person, a gift of any of the principal’s
property, including by the exercise of a presently exercisable general power of
appointment held by the principal, in an amount per donee not to exceed the
annual dollar limits of the federal gift tax exclusion under Internal Revenue
Code Section 2503(b), 26 U.S.C. sec. 2503(b), as amended, without regard to
whether the federal gift tax exclusion applies to the gift, or if the principal’s
spouse agrees to consent to a split gift pursuant to Internal Revenue Code
Section 2513, 26 U.S.C. sec. 2513, as amended, in an amount per donee not to
exceed twice the annual federal gift tax exclusion limit; and
(b)Consent, pursuant to Internal Revenue Code Section 2513, 26 U.S.C. sec.
2513, as amended, to the splitting of a gift made by the principal’s spouse in
an amount per donee not to exceed the aggregate annual gift tax exclusions for
both spouses.
(3)An agent may make a gift of the principal’s property only as the agent determines is
consistent with the principal’s objectives if actually known by the agent and, if
unknown, as the agent determines is consistent with the principal’s best interest
based on all relevant factors, including:
(a)The value and nature of the principal’s property;
(b)The principal’s foreseeable obligations and need for maintenance;
(c)Minimization of taxes, including income, estate, inheritance, generation-
skipping transfer, and gift taxes;
(d)Eligibility for a benefit, a program, or assistance under a statute or regulation;
and
(e)The principal’s personal history of making or joining in making gifts.