1. (1) For purposes of this section, "interested persons" means persons whose consent would be required to achieve a binding settlement were the settlement to be approved by the court.
2. (2) Except as otherwise provided in subsection (3) of this section, interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust. This procedure is not intended to foreclose or limit any other avenue of settlement under the laws of this Commonwealth.
3. (3) A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes conditions that could be properly approved by the court under this chapter or other applicable law.

4. (4) Matters that may be resolved by a nonjudicial settlement agreement include:

   1. (a) The interpretation or construction of the terms of the trust;
   2. (b) The approval of a trustee's report or accounting;
   3. (c) Direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power;
   4. (d) The resignation or appointment of a trustee and the determination of a trustee's compensation;
   5. (e) Transfer of a trust's principal place of administration; and
   6. (f) Liability of a trustee for an action relating to the trust.
5. (5) Any interested person may request the court to approve a nonjudicial settlement agreement, to determine whether the representation under Subchapter 3 of this chapter was adequate, and to determine whether the agreement contains conditions the court could have properly approved.
6. (6) The District Court shall have exclusive jurisdiction over matters under this section.

Effective: July 15, 2014

History: Created 2014 Ky. Acts ch. 25, sec. 9, effective July 15, 2014.