Kentucky Adopts Uniform Trust Code

April 17, 2014

On April 7, 2014, Governor Beshear signed into law HB 78, which caused Kentucky to join twenty-seven other states and the District of Columbia in the adoption of the Uniform Trust Code (the "UTC"). Kentucky's adoption of the UTC makes the rules related to trust administration more similar to those in surrounding states (e.g., Ohio, Tennessee, West Virginia and Indiana, which have adopted various portions of the UTC in recent years), and it represents a substantial change to the trust law in Kentucky. In general, the UTC, among other things, (i) contains specific in-court and out-of-court procedures for terminating/modifying outdated or inflexible irrevocable trusts, (ii) more specifically defines the respective rights and duties of trustees and beneficiaries, (iii) provides statutory authority for the principles of virtual representation, and (iv) provides an extensive list of definitions applicable to the new Chapter 386B of the Kentucky Revised Statutes.

Following are a few of the specific changes to Kentucky trust law that will occur when Kentucky's version of the UTC becomes effective on July 15, 2014:

Please contact Todd Lewis or any member of the Frost Brown Todd Estates, Trusts and Wills service team with any questions regarding Kentucky's adoption of the UTC.