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386B.8-160 Specific powers of trustee.
Without limiting the authority conferred by KRS 386B.8-150, a trustee may:
(1) Collect trust property and accept or reject additions to the trust property from a
settlor or any other person;
(2) Acquire or sell property, for cash or on credit, at public or private sale;
(3) Exchange, partition, or otherwise change the character of trust property, including
acquiring an undivided interest;
(4) Deposit trust money in an account in a regulated financial institution;
(5) Borrow money, with or without security, and mortgage or pledge trust property for a
period within or extending beyond the duration of the trust, 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;
(6) With respect to an interest in a proprietorship, partnership, limited liability
company, business trust, corporation, or other form of business or enterprise,
continue the business or other enterprise and take any action that may be taken by
shareholders, members, or property owners, including merging, dissolving, or
otherwise changing the form of business organization or contributing additional
capital;
(7) With respect to stocks or other securities, exercise the rights of an absolute owner,
including the right to:
(a) Vote, or give proxies to vote, with or without power of substitution, or enter
into or continue a voting trust agreement;
(b) Hold a security in the name of a nominee or in other form without disclosure
of the trust so that title may pass by delivery;
(c) Pay calls, assessments, and other sums chargeable or accruing against the
securities, and sell or exercise stock subscription or conversion rights;
(d) Deposit the securities with a depositary or other regulated financial institution;
(e) Sell or exchange stock subscription or conversion rights; and
(f) Consent directly or through a committee or other agent, to the reorganization,
consolidation, merger, dissolution, or liquidation of a corporation or other
business enterprise;
(8) With respect to an interest in real property, construct or make ordinary or
extraordinary repairs to, alterations to, or improvements in, buildings or other
structures, demolish improvements, raze existing or erect new party walls or
buildings, subdivide or develop land, dedicate land to public use or grant public or
private easements, and make or vacate plats and adjust boundaries;
(9) Enter into a lease for any purpose as lessor or lessee, including a lease or other
arrangement for exploration and removal of natural resources, with or without the
option to purchase or renew, for a period within or extending beyond the duration of
the trust;
(10) Grant an option involving a sale, lease, or other disposition of trust property or
acquire an option for the acquisition of property, including an option exercisable
beyond the duration of the trust, and exercise an option so acquired;
(11) Insure the property of the trust against damage or loss and insure the trustee, the
trustee's agents, and beneficiaries against liability arising from the administration of
the trust;
(12) Abandon or decline to administer property of no value or of insufficient value to
justify its collection or continued administration;
(13) With respect to possible liability for violation of environmental law:
(a) Inspect or investigate property the trustee holds or has been asked to hold, or
property owned or operated by an organization in which the trustee holds or
has been asked to hold an interest, for the purpose of determining the
application of environmental law with respect to the property;
(b) Take action to prevent, abate, or otherwise remedy any actual or potential
violation of any environmental law affecting property held directly or
indirectly by the trustee, whether taken before or after the assertion of a claim
or the initiation of governmental enforcement;
(c) Decline to accept property into trust or disclaim any power with respect to
property that is or may be burdened with liability for violation of
environmental law;
(d) Compromise claims against the trust which may be asserted for an alleged
violation of environmental law; and
(e) Pay the expense of any inspection, review, abatement, or remedial action to
comply with environmental law;
(14) Pay or contest any claim, settle a claim by or against the trust, and release, in whole
or in part, a claim belonging to the trust;
(15) Pay taxes, assessments, compensation of the trustee and of employees and agents of
the trust, and other expenses incurred in the administration of the trust;
(16) Exercise elections with respect to federal, state, and local taxes;
(17) Select a mode of payment under any employee benefit or retirement plan, annuity,
or life insurance payable to the trustee, exercise rights thereunder, including
exercise of the right to indemnification for expenses and against liabilities, and take
appropriate action to collect the proceeds;
(18) Make loans out of trust property, including loans to a beneficiary on terms and
conditions the trustee considers to be fair and reasonable under the circumstances,
and the trustee has a lien on future distributions for repayment of those loans;
(19) Pledge trust property to guarantee loans made by others to the beneficiary;
(20) Appoint a trustee to act in another jurisdiction with respect to trust property located
in the other jurisdiction, confer upon the appointed trustee all of the powers and
duties of the appointing trustee, require that the appointed trustee furnish security,
and remove any trustee so appointed;
(21) Pay an amount distributable to a beneficiary who is under a legal disability or who
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the trustee reasonably believes is incapacitated, by paying it directly to the
beneficiary or applying it for the beneficiary's benefit, or by:
(a) Paying it to the beneficiary's conservator or, if the beneficiary does not have a
conservator, the beneficiary's guardian;
(b) Paying it to the beneficiary's custodian under KRS 385.022 to 385.242, the
Kentucky Uniform Transfers to Minors Act or custodial trustee under the
Uniform Custodial Trust Act, if that Act is subsequently adopted by the
Commonwealth, and, for that purpose, creating a custodianship or custodial
trust;
(c) If the trustee does not know of a conservator, guardian, custodian, or custodial
trustee, paying it to an adult relative or other person having legal or physical
care or custody of the beneficiary, to be expended on the beneficiary's behalf;
or
(d) Managing it as a separate fund on the beneficiary's behalf, subject to the
beneficiary's continuing right to withdraw the distribution;
On distribution of trust property or the division or termination of a trust, make
distributions in divided or undivided interests, allocate particular assets in
proportionate or disproportionate shares, value the trust property for those purposes,
and adjust for resulting differences in valuation;
Resolve a dispute concerning the interpretation of the trust or its administration by
mediation, arbitration, or other procedure for alternative dispute resolution;
Prosecute or defend an action, claim, or judicial proceeding in any jurisdiction to
protect trust property and the trustee in the performance of the trustee's duties;
Sign and deliver contracts and other instruments that are useful to achieve or
facilitate the exercise of the trustee's powers;
Take such actions as are necessary to cause gains from the sale or exchange of trust
assets, as determined for federal income tax purposes, to be taxed for federal
income tax purposes as a part of a distribution of income, including the power to:
(a) Allocate such gains to income for the purpose of making discretionary
distributions; and
(b) Allocate such gains to income that has been increased by an adjustment from
principal to income pursuant to KRS 386.454, to a unitrust distribution, or to a
distribution of principal to a beneficiary;
Invest and reinvest trust assets in accordance with the provisions of the trust or as
provided by law;
Allocate items of income or expense to either trust income or principal, as provided
by law;
In addition to the power to delegate under KRS 386B.8-070, employ persons,
including attorneys, auditors, investment advisors, or agents, to:
(a) Advise or assist the trustee in the performance of his administrative duties;
(b) Act without independent investigation upon their recommendations; and
(c) Instead of acting personally, to employ one (1) or more agents to perform any
act of administration, whether or not discretionary; and
(30) On termination of the trust, exercise the powers appropriate to wind up the
administration of the trust and distribute the trust property to the persons entitled to
it within a reasonable amount of time.
Effective: July 15, 2014
History: Created 2014 Ky. Acts ch. 25, sec. 75, effective July 15, 2014.
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