2011 Kentucky Revised Statutes CHAPTER 386 ADMINISTRATION OF TRUSTS -- LEGAL INVESTMENTS -- UNIFORM PRINCIPAL AND INCOME ACT 386.492 Disbursement from principal.
KY Rev Stat § 386.492 (1996 through Reg Sess) What's This?
386.492 Disbursement from principal.
(1)
(2)
A trustee shall make the following disbursements from principal:
(a) That portion of the regular compensation of the trustee and any person
providing investment advisory or custodial services to the trustee not paid
from income under KRS 386.490(1);
(b) The remaining one-half (1/2) of the disbursements described in KRS
386.490(2);
(c) All of the trustee's compensation calculated on principal as a fee for
acceptance, distribution, or termination, and disbursements made to prepare
property for sale;
(d) Payments on the principal of a trust debt;
(e) Expenses of a proceeding that concerns primarily principal, including a
proceeding to construe the trust or to protect the trust or its property;
(f) Premiums paid on a policy of insurance not described in KRS 386.490(4) of
which the trust is the owner and beneficiary;
(g) Estate, inheritance, and other transfer taxes, including penalties, apportioned
to the trust; and
(h) Disbursements related to environmental matters, including reclamation,
assessing environmental conditions, remedying and removing environmental
contamination, monitoring remedial activities and the release of substances,
preventing future releases of substances, collecting amounts from persons
liable or potentially liable for the costs of those activities, penalties imposed
under environmental laws or regulations and other payments made to comply
with those laws or regulations, statutory or common law claims by third
parties, and defending claims based on environmental matters.
If a principal asset is encumbered with an obligation that requires income from that
asset to be paid directly to the creditor, the trustee shall transfer from principal to
income an amount equal to the income paid to the creditor in reduction of the
principal balance of the obligation.
Effective: January 1, 2005
History: Created 2004 Ky. Acts ch. 158, sec. 22, effective January 1, 2005.
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