AN ACT relating to the disposition of property.

Amend KRS 391.010 to specify the share of the surviving spouse in real property in an intestate estate; amend KRS 392.020 to identify surplus personalty and surplus real estate and the share of the surviving spouse to surplus personalty and surplus real estate in an intestate estate; amend KRS 394.300 to set the period of time a county clerk is required to hold a recorded will and to whom the will shall be returned upon expiration of the time period; amend various sections of KRS Chapter 395 to establish requirements for appointment as a fiduciary, confidentiality protections of assets of an estate, and when a hearing for appointment may be waived; amend various sections of KRS Chapter 395 to establish a written declaration under penalty of perjury in lieu of a sworn oath when accepted by the court; amend KRS 395.130 to establish that no bond shall be required of a personal representative unless a surety bond is ordered by the court or required by statute; amend various sections of KRS Chapter 395 to set the requirements for filing an inventory, including penalties for failure to timely comply with the statutory requirements; amend KRS 395.255 to require the clerk of the court to report to the judge on a monthly basis all filings that are not timely filed; amend KRS 395.380, 395.390, and 395.400 to change requirements for the appointment of a public administrator or guardian; remove the sheriff as a public administrator; amend various sections of KRS Chapter 395 to establish procedures to dispense with administration of testate and intestate estates; amend various sections of KRS Chapter 395 to establish procedures for the filing of periodic and final settlements; amend KRS 395.990 to increase the penalty from $10 to $100 for a fiduciary failing to file an inventory or account; amend KRS 199.520 to deem a child of adoption to be a child of the petitioners for purposes of inheritance and succession if the child was adopted and resided with the petitioners prior to the age of 18; amend KRS 140.070 and 140.080 to identify Class A and Class B beneficiaries for purposes of inheritance tax and provide exemptions; amend KRS 64.012 to establish a flat fee of $33 for the recording of a will or other probate document or a court-ordered name change with the county clerk; amend KRS 142.010 to establish a tax of $4 for each recorded will to be collected by the clerk of the court and paid to the county clerk; amend KRS 401.040 to authorize the clerk of the court to collect the fee on behalf of the county clerk for filing a name change order; create a new section of KRS Chapter 186A to set a procedure for the transfer of a motor vehicle upon death; amend KRS 138.470 to include the transfer on death of a motor vehicle as an exemption from the tax imposed by KRS 138.460; 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 nontestamentary estate planning document or a signature on a nontestamentary 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 nontestamentary 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; specify 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 the 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 trust; 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; 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 various sections of the Kentucky Revised Statutes to conform; repeal KRS 395.635, relating to certification of list of delinquent fiduciaries; repeal KRS 386B.8-080, relating to a settlor's power to direct a trust; repeal KRS 386.175, relating to second trusts; establish short titles.