25RS HB 720

House Bill 720

Actions

Last Action	02/19/25: to Committee on Committees (H)
Title	AN ACT relating to disposition of property.
Bill Documents	Introduced
Bill Request Number	987
Sponsor	M. Lockett
Summary of Original Version	Create new sections of KRS Chapter 394 to enact the Uniform Electronic Wills Act; define terms; establish the applicability of electronic wills; address the effect of a will electronically executed in another jurisdiction; establish requirements for executing and revoking an electronic will; address records that are not executed in compliance with the requirements for an electronic will; provide requirements for an electronic will to be self-proving; allow for certified paper copies of an electronic will; create new sections of KRS Chapter 394 to enact the Uniform Electronic Estate Planning Documents Act; define terms; establish that a non-testamentary estate planning document or a signature on a non-testamentary estate planning document may not be denied legal effect or enforceability solely because it is in electronic form; provide that an electronic record of a document satisfies a requirement for a non-testamentary estate planning document to be in writing; establish notarization, acknowledgment, and verification requirements; create new sections of KRS Chapter 386 to enact the Kentucky Qualified Dispositions in Trust Act; define terms; establish requirements for qualified affidavit; prohibit claims by creditors against property subject to a qualified disposition to a qualified trust except under limited circumstances; provide that limitations on actions by creditors do not apply to past due child support, past due maintenance to a spouse or former spouse, or a written agreement, judgment, or order of a court for division of marital property of a spouse or former spouse; limit powers and rights of transferor to those conferred by the qualified trust; establish rules for avoiding a qualified disposition to a qualified trust; address rights of trustee and beneficiary when a qualified disposition has been avoided; provide that a spendthrift provision acts as a restriction on the transferor's beneficial interest in the trust under law other than bankruptcy law; enumerate persons who may not act as a qualified trustee; allow a transferor to appoint trust advisors; provide for the appointment of a successor trustee in certain circumstances; provide that the inclusion of certain provisions in the qualified trust instrument does not deem the trust to be revocable; application to trusts and dispositions of property on or after effective date of Act; establish a new subchapter of KRS Chapter 386B and create new sections to enact the Uniform Directed Trust Act; define terms; establish that Act does not apply to powers of appointment; subject trust directors to same rules, liabilities, and fiduciary duties as trustees; enumerate powers of trust director and responsibilities of trustee in a trust under direction; provide for liability of trust director for breach of trust; time limitation for breach of trust action; require communication of information between trustees and trust directors; establish a new subchapter of KRS Chapter 386B and create new sections to enact the Uniform Trust Decanting Act; define terms; applicability of provisions; require fiduciaries to act in accordance with fiduciary duties in exercising trust decanting power; specify notice requirements prior to exercise of the decanting power; address authority to represent and bind or another person under a first-trust instrument; allow court intervention in disputes regarding the exercise of the decanting power; require an exercise of the decanting power to be made in a record signed by an authorized fiduciary; allow an authorized fiduciary with expanded distributive discretion over the principal of a first trust to exercise decanting power over the principal of the first trust; specify trust provisions and actions permissible when property is decanted to a second trust by such a fiduciary; allow an authorized fiduciary with limited distributive discretion over the principal of a first trust to exercising decanting power over the principal of the first rust; specify trust provisions and actions permissible when property is decanted to a second trust by such a fiduciary; establish rules for decanting to a special needs trust; establish rules to protect charitable trust interests; provide for limitations on decanting power through restrictions in a first-trust instrument; prohibit decanting to a second trust to increase fiduciary compensation unless beneficiaries of the second trust agree to the increase or it is approved by a court; address fiduciary compensation and liability in a second-trust instrument; provide for limitations on authority of authorized fiduciary to exercise decanting power to modify provisions relating to removal or replacement of the fiduciary; set limitations for exercise of the decanting power with respect to transfers of property affecting tax liability; specify requirements for duration of a second trust; allow authorized fiduciary to exercise decanting power regardless of whether the fiduciary could have made or would have been compelled to make a discretionary distribution under discretionary distribution standard of the first trust; provide for circumstances where decanting power is effective even if second trust does not comply in part with the provisions of the Act; provide for decanting powers to an animal trust; provide that a settlor of a first trust is deemed to be settlor of first trust; establish rules for disposition of later-discovered property; provide that obligations enforceable against first trust are enforceable to same extent against second trust; require provisions to be applied and construed so as to promote uniformity among states; conform to federal requirements related to electronic signatures and records; amend and repeal various sections of the Kentucky Revised Statutes to conform; establish short titles.
Index Headings of Original Version	Fiduciaries - Trusts, asset protection, qualification requirements Fiduciaries - Uniform Directed Trust Act, adoption Fiduciaries - Uniform Electronic Estate Planning Documents Act, adoption Fiduciaries - Uniform Electronic Wills Act, adoption Fiduciaries - Uniform Trust Decanting Act, adoption Taxation, Inheritance and Estate - Trusts, asset protection, qualification requirements Taxation, Inheritance and Estate - Uniform Directed Trust Act, adoption Taxation, Inheritance and Estate - Uniform Electronic Estate Planning Documents Act, adoption Taxation, Inheritance and Estate - Uniform Electronic Wills Act, adoption Taxation, Inheritance and Estate - Uniform Trust Decanting Act, adoption Uniform Laws - Uniform Directed Trust Act, adoption Uniform Laws - Uniform Electronic Estate Planning Documents Act, adoption Uniform Laws - Uniform Electronic Wills Act, adoption Uniform Laws - Uniform Trust Decanting Act, adoption Wills and Estates - Trusts, asset protection, qualification requirements Wills and Estates - Uniform Directed Trust Act, adoption Wills and Estates - Uniform Electronic Estate Planning Documents Act, adoption Wills and Estates - Uniform Electronic Wills Act, adoption Wills and Estates - Uniform Trust Decanting Act, adoption Banks and Financial Institutions - Trusts, asset protection, qualification requirements Banks and Financial Institutions - Uniform Directed Trust Act, adoption Banks and Financial Institutions - Uniform Electronic Wills Act, adoption Banks and Financial Institutions - Uniform Estate Planning Documents Act, adoption Banks and Financial Institutions - Uniform Trust Decanting Act, adoption Short Titles and Popular Names - Uniform Electronic Wills Act, adoption Short Titles and Popular Names - Uniform Directed Trust Act, adoption Short Titles and Popular Names - Uniform Trust Decanting Act, adoption Short Titles and Popular Names - Uniform Electronic Estate Planning Documents Act, adoption Short Titles and Popular Names - Kentucky Qualified Dispositions in Trust Act