2011 Kentucky Revised Statutes CHAPTER 386 ADMINISTRATION OF TRUSTS -- LEGAL INVESTMENTS -- UNIFORM PRINCIPAL AND INCOME ACT 386.810 Powers of trustees conferred by this chapter.
KY Rev Stat § 386.810 (1996 through Reg Sess) What's This?
386.810 Powers of trustees conferred by this chapter.
(1)
(2)
(3)
From time of creation of the trust until final distribution of the assets of the trust, a
trustee has the power to perform, without court authorization, every act which a
prudent man would perform for the purposes of the trust including but not limited to
the powers specified in subsection (3).
In the exercise of his powers including the powers granted by this chapter, a trustee
has a duty to act with due regard to his obligation as a fiduciary, including a duty to
give consideration to available tax exemptions, deductions, or credits for tax
purposes. "Tax" includes, but is not limited to, any federal, state, or local income,
gift, estate, or inheritance tax.
A trustee has the power, subject to subsections (1) and (2) of this section:
(a) To collect, hold, and retain trust assets received from a trustor until, in the
judgment of the trustee, disposition of the assets should be made; and the
assets may be retained even though they include an asset in which the trustee
is personally interested;
(b) To receive additions to the assets of the trust;
(c) To continue or participate in the operation of any business or other enterprise,
and to effect incorporation, dissolution, or other change in the form of the
organization of the business or enterprise;
(d) To acquire an undivided interest in a trust asset in which the trustee, in any
trust capacity, holds an undivided interest;
(e) To invest and reinvest trust assets in accordance with the provisions of the
trust or as provided by law;
(f) To deposit trust funds in a bank, including a bank operated by the trustee;
(g) To acquire or dispose of an asset, for cash or on credit, at public or private
sale; and to manage, develop, improve, exchange, partition, change the
character of, or abandon a trust asset or any interest therein; and to encumber,
mortgage, or pledge a trust asset for a term within or extending beyond the
term of the trust, in connection with the exercise of any power vested in the
trustee;
(h) To make ordinary or extraordinary repairs or alterations in buildings or other
structures, to demolish any improvements, to raze existing or erect new party
walls or buildings;
(i) To subdivide, develop, or dedicate land to public use; or to make or obtain the
vacation of plats and adjust boundaries; or to adjust differences in valuation
on exchange or partition by giving or receiving consideration; or to dedicate
easements to public use without consideration;
(j) To enter for any purpose into a lease as lessor or lessee with or without option
to purchase or renew for a term within or extending beyond the term of the
trust;
(k) To enter into a lease or arrangement for exploration and removal of minerals
or other natural resources or enter into a pooling or unitization agreement;
(l)
To grant an option involving disposition of a trust asset, or to take an option
for the acquisition of any asset;
(m) To vote a security, in person or by general or limited proxy;
(n) To pay calls, assessments, and any other sums chargeable or accruing against
or on account of securities;
(o) To sell or exercise stock subscription or conversion rights; to consent, directly
or through a committee or other agent, to the reorganization, consolidation,
merger, dissolution, or liquidation of a corporation or other business
enterprise;
(p) To hold a security in the name of a nominee or in other form without
disclosure of the trust, so that title to the security may pass by delivery, but the
trustee is liable for any act of the nominee in connection with the stock so
held;
(q) To insure the assets of the trust against damage or loss, and the trustee against
liability with respect to third persons;
(r) To borrow money to be repaid from trust assets or otherwise; to advance
money for the protection of the trust, and for all expenses, losses, and liability
sustained in the administration of the trust or because of the holding or
ownership of any trust assets, for which advances with any interest the trustee
has a lien on the trust assets as against the beneficiary;
(s) To pay or contest any claim; to settle a claim by or against the trust by
compromise, arbitration, or otherwise; and to release, in whole or in part, any
claim belonging to the trust to the extent that the claim is uncollectible;
(t) To pay taxes, assessments, compensation of the trustee, and other expenses
incurred in the collection, care, administration, and protection of the trust;
(u) To allocate items of income or expense to either trust income or principal, as
provided by law, including creation of reserves out of income for depreciation,
obsolescence, or amortization, or for depletion in mineral or timber properties;
(v) To pay any sum distributable to a beneficiary under legal disability, without
liability to the trustee, by paying the sum to the beneficiary or by paying the
sum for the use of the beneficiary either to a legal representative appointed by
the court, or if none, to a relative;
(w) To effect distribution of property and money in divided or undivided interests
and to adjust resulting differences in valuation;
(x) To employ persons, including attorneys, auditors, investment advisors, or
agents to advise or assist the trustee in the performance of his administrative
duties; to act without independent investigation upon their recommendations;
and instead of acting personally, to employ one (1) or more agents to perform
any act of administration, whether or not discretionary;
(y) To prosecute or defend actions, claims, or proceedings for the protection of
trust assets and of the trustee in the performance of his duties;
(z)
To execute and deliver all instruments which will accomplish or facilitate the
exercise of the powers vested in the trustee.
History: Created 1976 Ky. Acts ch. 218, sec. 46.
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