Declaration of Trust — Kentucky UTC Adopted
State-specific requirements for creating a Declaration of Trust in Kentucky.Create yours now →
Certificate of Trust · At a glance
Kentucky · summary of the record on file
KRS Chapter 386B (Kentucky Uniform Trust Code), enacted 2014 Ky. Acts ch. 25, effective July 15, 2014. Certification of trust at KRS 386B.10-120. Rule against perpetuities at KRS 381.215-381.226. Business trust provisions at KRS 386.370-386.440.Citation text is shown as currently recorded. No source URL is on file for this state.Source URL missing · unverified- Notary: Kentucky does not require a notary or witnesses for a trust under the Kentucky Uniform Trust Code.
- Witnesses: Kentucky does not require a notary or witnesses for a trust under the Kentucky Uniform Trust Code.
- Recording: Notarization is recommended for practical purposes (bank acceptance, recording) but is not a statutory requirement for trust validity.
- Source URL: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43153
- Last verified: 2026-09-17
- Legal review: Not performed
Governing Statute
KRS Chapter 386B (Kentucky Uniform Trust Code), enacted 2014 Ky. Acts ch. 25, effective July 15, 2014. Certification of trust at KRS 386B.10-120. Rule against perpetuities at KRS 381.215-381.226. Business trust provisions at KRS 386.370-386.440.
Execution Requirements
Kentucky does not require a notary or witnesses for a trust under the Kentucky Uniform Trust Code. The trust is created if the settlor has capacity, indicates intention to create the trust, there is a definite beneficiary (or charitable/animal/purpose trust), the trustee has duties, and the same person is not sole trustee and sole beneficiary. The trust instrument may be signed electronically and executed entirely remotely. Notarization is recommended for practical purposes (bank acceptance, recording) but is not a statutory requirement for trust validity. For recording real property held in trust, notarization/acknowledgment of deeds is required separately under Kentucky deed recording statutes.
Business Trust Treatment
Kentucky recognizes business trusts under KRS 386.370-386.440. KRS 386.370 defines 'business trust' and 'business entity' to include Real Estate Investment Trusts (REITs) and similar entities. Foreign business trusts valid in their state of origin are valid in Kentucky if they comply with KRS 386.390-386.440. Business trusts are treated as separate legal entities for most purposes, including suing and being sued in the trust name. Kentucky's business trust statutes provide for the formation, operation, and governance of business trusts, including provisions on trustees, beneficial interests, and liability protections similar to corporate shield principles.
Favorable Trust Laws
Kentucky repealed its common law rule against perpetuities effective July 15, 2010 (KRS 381.215-381.217 repealed), replacing it with KRS 381.224 and 381.225, which permit a permissible period of power of alienation under trust for up to 360 years (a very long but finite period), making Kentucky favorable for dynasty trusts of substantial duration. KRS 381.226 governs applicability and construction of these perpetuities provisions. Kentucky does not impose a state income tax on trusts if the trust has no Kentucky-source income and no Kentucky resident beneficiaries. Kentucky offers spendthrift trust protections under the UTC. Self-settled asset protection trusts are not expressly authorized, so Kentucky is not a DAPT state. Kentucky does not have a state estate or inheritance tax.
Unique Factors
Kentucky adopted the Uniform Trust Code relatively recently (2014), making it one of the later UTC adopters. The 360-year perpetuities period under KRS 381.224 is notably long, positioning Kentucky as a moderately favorable dynasty trust jurisdiction. Kentucky is the only state that requires District Court to have exclusive jurisdiction over certification of trust matters (KRS 386B.10-120(10)). Kentucky's business trust statutes (KRS Chapter 386) are separate from and predate the UTC adoption, creating a dual statutory framework for trust-type entities.
Certification of Trust in Kentucky
KRS 386B.10-120 provides that instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish a certification of trust containing the following information: (1) that the trust exists and the date the trust instrument was signed; (2) the identity of the settlor; (3) the identity and address of the currently acting trustee; (4) the powers of the trustee; (5) the revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust; (6) the authority of cotrustees to sign or otherwise authenticate and whether all or less than all are required in order to exercise powers of the trustee; (7) the manner of taking title to trust property. The certification must state that the trust has not been revoked, modified, or amended in any manner that would cause the representations to be incorrect. It need not contain the dispositive terms of a trust. A recipient may require the trustee to furnish copies of excerpts from the original trust instrument and later amendments which designate the trustee and confer powers for the pending transaction. A person acting in reliance without knowledge of incorrectness is not liable and may assume the facts. Good-faith reliance allows enforcement against trust property. Bad-faith demands for the full trust instrument may result in damages. The District Court has exclusive jurisdiction over matters under this section.
Already have a trust? You may also need a Certificate of Trust for Kentucky to prove its existence to banks and institutions.
How a Declaration of Trust works in Kentucky
A declaration of trust under Kentucky law is created when the settlor signs the instrument with the intent to create a trust, identifies beneficiaries, and assigns duties to a trustee. Kentucky adopted the Uniform Trust Code as KRS Chapter 386B, effective July 15, 2014. The trust instrument does not require notarization or witnesses, and it may be signed electronically and executed remotely. Once executed, the trust becomes active when property is transferred to the trustee. Real property must be conveyed by a new deed, and financial accounts must be retitled in the trust name. A successor trustee named in the document steps in if the acting trustee is unable to serve. When a third party requests proof of the trust, KRS 386B.10-120 specifies what a certification of trust may contain, and the District Court has exclusive jurisdiction over matters under this section. A third party may require the trustee to furnish excerpts from the trust instrument designating the trustee and conferring powers for the pending transaction.
Frequently asked questions
Does a Kentucky declaration of trust need to be notarized or witnessed?
Under the Kentucky Uniform Trust Code (KRS Chapter 386B), the trust instrument does not require notarization or witnesses. The trust is validly created when the settlor has capacity, indicates intent, and the instrument is signed. Notarization is not a statutory requirement for trust validity, though it is recommended for practical purposes such as bank acceptance and real property recording. For real property held in trust, deeds must be notarized and recorded separately. Kentucky also recognizes electronic signatures and remote execution, making the process flexible for modern estate planning.
Can a Kentucky trust last for 1,000 years?
Kentucky repealed its common law rule against perpetuities and replaced it with KRS 381.224, which permits a permissible period of power of alienation under trust for up to 360 years. This allows for substantial multi-generational wealth transfers, though it is not unlimited. Kentucky also offers spendthrift trust protections under the Uniform Trust Code. However, Kentucky does not authorize self-settled asset protection trusts, so the settlor cannot shield trust assets from personal creditors. The 360-year period makes Kentucky a moderately favorable jurisdiction for dynasty trust planning.
What goes in a certification of trust under KRS 386B.10-120?
KRS 386B.10-120 lists what a certification of trust may contain: that the trust exists and the date the instrument was signed, the identity of the settlor, the identity and address of the currently acting trustee, the trustee's powers, whether the trust is revocable and who holds the power to revoke, cotrustee signing authority, and the manner of taking title to trust property. It need not contain dispositive terms, and a recipient may require excerpts designating the trustee and conferring powers for the pending transaction.
How does Kentucky treat business trusts?
Kentucky recognizes business trusts under KRS 386.370 through KRS 386.440. KRS 386.370 defines business trust and business entity to include Real Estate Investment Trusts and similar entities. Foreign business trusts valid in their state of origin are valid in Kentucky if they comply with KRS 386.390 through KRS 386.440. Business trusts are treated as separate legal entities for most purposes, including suing and being sued in the trust name, with liability protections similar to corporate shield principles.
Common mistakes
Common issues include assuming Kentucky law requires witnesses or notarization for the trust instrument itself (it requires neither, though recording-related steps such as deeds or certificates of trust may call for an acknowledgment), and leaving the trust unfunded so that property never actually moves into it through a new deed or retitled accounts. Another frequent mix-up is treating a business trust like a family trust: Kentucky's business trust statutes (KRS 386.370-386.440) are separate from the Uniform Trust Code and require distinct compliance steps. People also assume asset-protection provisions apply on their own; Kentucky does not authorize self-settled asset protection trusts. Documents that omit a successor trustee, or that do not match the certification of trust described in KRS 386B.10-120, create avoidable friction during administration. The District Court has exclusive jurisdiction over certification matters, which is unique among UTC states.
Kentucky notes
Kentucky operates under the Kentucky Uniform Trust Code, KRS Chapter 386B, enacted by 2014 Ky. Acts ch. 25 and effective July 15, 2014. Certification of trust contents are set by KRS 386B.10-120, and the District Court has exclusive jurisdiction over matters under this section. Kentucky repealed its common law rule against perpetuities and replaced it with KRS 381.224, permitting a permissible period of power of alienation of up to 360 years. Kentucky levies no state estate tax, no inheritance tax, and no state income tax on trusts without Kentucky-source income or Kentucky resident beneficiaries. The state permits 360-year dynasty trusts, a moderately favorable period for multi-generational transfers. Kentucky offers spendthrift trust protections under the UTC but does not authorize self-settled asset protection trusts. Business trusts follow a separate track under KRS 386.370-386.440, distinct from the UTC framework, with foreign business trusts recognized if they comply with the applicable provisions.