2014 Kentucky Revised Statutes CHAPTER 381 - TITLE TO PROPERTY AND RESTRICTIONS ON USE, OWNERSHIP, AND ALIENATION 381.226 Applicability of KRS 381.224 and 381.225 to property interests and powers of appointment -- Construction of provisions requiring vesting within period provided by common law rule against perpetuities.
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381.226 Applicability of KRS 381.224 and 381.225 to property interests and
powers of appointment -- Construction of provisions requiring vesting
within period provided by common law rule against perpetuities.
(1)
(2)
(3)
(4)
Except as provided in subsection (2) of this section, KRS 381.224 and 381.225
shall apply to:
(a) A future property interest or a power of appointment that is created on or
after July 15, 2010, including a property interest or power of appointment
created pursuant to the exercise of a power of appointment under an
instrument executed prior to July 15, 2010; or
(b) A future property interest or a power of appointment:
1.
That is created pursuant to the laws of any state that does not have
a rule against perpetuities in force;
2.
That is not covered by any previously existing rule against
perpetuities; and
3.
To which, after July 15, 2010, the laws of this state are made
applicable by transfer of the situs of a trust to Kentucky, by a change
in the law governing a trust instrument to Kentucky law, or
otherwise.
With respect to a nonvested property interest or a power of appointment
created either before or after July 15, 2010, which is determined in a judicial
proceeding commenced on or after July 15, 2010, to violate Kentucky's rule
against perpetuities as that rule existed at the time the interest or power was
created, a court upon the petition of an interested person may reform the
disposition in the manner that most closely approximates the transferor's
manifested plan of disposition and is within the limits of the rule against
perpetuities applicable when the nonvested property interest or power of
appointment was created.
For purposes of this section only, a future property interest or a power of
appointment is created when the power is irrevocably exercised or when a
revocable exercise becomes irrevocable.
An instrument which contains a provision requiring the vesting of all interests
created by the instrument within the period provided by the common law rule
against perpetuities shall be construed as requiring the interests to vest within
the period specified by this section and KRS 381.224 and 381.225, unless the
provision is determined by a court to have been included in the instrument for
reasons other than protecting the interest against a violation of the common
law rule against perpetuities. For purposes of this subsection, the term
"common law rule against perpetuities" shall include KRS 381.215, 381.216,
and 381.217 prior to their repeal on July 15, 2010.
Effective:July 15, 2010
History: Created 2010 Ky. Acts ch. 21, sec. 3, effective July 15, 2010.
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