KRS § 386.622 — KY Code / Title XXXIII / Chapter 386 / Section 386.622
386.622 Arrangement between spouses involving community property considered a community property trust -- Requirements for -- Provisions of written agreement -- Amendment or revocation of trust -- Consideration not required -- Classification and distribution of property
Status: in_force

386.622 Arrangement between spouses involving community property considered a

community property trust -- Requirements for -- Provisions of written

agreement -- Amendment or revocation of trust -- Consideration not required -

- Classification and distribution of property.

(1) Any arrangement between spouses involving community property shall be

considered a community property trust if one (1) or both spouses transfer property

to a trust that:

(a) Expressly declares that the trust is a Kentucky community property trust that

meets the requirements of KRS 386.620 to 386.624;

(b) Has at least one (1) trustee who is a qualified trustee whose powers include or

are limited to maintaining records for the trust, on an exclusive or a

nonexclusive basis, and preparing or arranging for the preparation of, on an

exclusive or a nonexclusive basis, any income tax returns that must be filed by

the trust. Both spouses or either spouse may be a trustee;

(c) Is signed by both spouses; and

(d) Contains the following language in capital letters at the beginning of the trust:

THE CONSEQUENCES OF THIS TRUST MAY BE VERY EXTENSIVE,

INCLUDING BUT NOT LIMITED TO YOUR RIGHTS WITH YOUR

SPOUSE BOTH DURING THE COURSE OF YOUR MARRIAGE AND AT

THE TIME OF A DIVORCE. ACCORDINGLY, THIS AGREEMENT

SHOULD ONLY BE SIGNED AFTER CAREFUL CONSIDERATION. IF

YOU HAVE ANY QUESTIONS ABOUT THIS AGREEMENT, YOU

SHOULD SEEK COMPETENT ADVICE.

(2) In the agreement establishing a community property trust, spouses may agree on and

provide in writing:

(a) The rights and obligations in the property transferred to the trust,

notwithstanding when and where the property is acquired or located;

(b) The management and control of the property transferred to the trust;

(c) The disposition of the property transferred to the trust on dissolution, death, or

the occurrence or nonoccurrence of another event;

(d) The choice of law governing the interpretation of the trust; and

(e) Any other matter that affects the property transferred to the trust and does not

violate public policy or any statute imposing a criminal penalty.

(3) Either spouse may amend a community property trust regarding the disposition of

that spouse's one-half (1/2) share of the community property in the event of a

spouse's death.

(4) Except as provided in subsection (2)(a) of this section, a community property trust

may not be amended or revoked unless the agreement itself provides for amendment

or revocation.

(5) Whether or not both, one (1), or neither spouse is domiciled in this state, spouses

may classify any or all of their property as community property by transferring

property to a community property trust and providing in the trust that the property is

community property.

(6) A community property trust shall be enforceable without consideration.

(7) All property owned by a community property trust shall be considered community

property during marriage and the right to manage and control property that is

transferred to a community property trust shall be determined by the terms of the

trust.

(8) When property is distributed from a community property trust, it shall no longer

constitute community property.