Title 45a — Title 45a: Probate Courts and Procedure

Sec. 45a-517. (Formerly Sec. 45-82). Community trustees to render annual accounts. Hearing on adjustment and allowance. (a) The trustee or trustees of any charitable community trust shall annually render an account signed under penalty of false statement to the court of probate f…

Sec. 45a-518. Reserved for future use.

Sec. 45a-519. (Formerly Sec. 45-79a). Superior Court or Probate Court jurisdiction to reform instruments to federal tax requirements. (a) If any deduction under Section 170, Section 2055 or Section 2522 of the Internal Revenue Code of 1986 is not allowable with respect to any int…

Sec. 45a-520. (Formerly Sec. 45-79b). Termination of charitable trusts. (a) As used in this section: (1) “Charitable beneficiary” and “charitable entity” include, without limitation, towns, ecclesiastical society and cemetery associations owning or controlling the operation of a …

Sec. 45a-521. Superior Court or Probate Court jurisdiction to reform charitable remainder unitrust re payment. (a) Upon a petition filed within the period specified in 26 CFR 1.664-3, by a trustee of a charitable remainder unitrust, the Superior Court, or a Probate Court specifie…

Secs. 45a-522 to 45a-525. Reserved for future use. PART V CONNECTICUT UNIFORM PRUDENT MANAGEMENTOF INSTITUTIONAL FUNDS ACT

Secs. 45a-526 to 45a-529. (Formerly Secs. 45-100h to 45-100k). Short title: Uniform Management of Institutional Funds Act. Definitions. Expenditure of net appreciation, standards. Exception and restriction on expenditure of net appreciation; construction. Sections 45a-526 to 45a-…

Secs. 45a-529a and 45a-529b. Accumulation of annual net income, standards. Exception and restriction on accumulation of annual net income; construction. Sections 45a-529a and 45a-529b are repealed, effective April 29, 2008. (P.A. 93-189, S. 2, 3; P.A. 08-6, S. 4.)

Secs. 45a-530 to 45a-534. (Formerly Secs. 45-100l to 45-100p). Investment of institutional funds. Delegation of powers of investment. Standards applicable to actions of governing board. Release of restriction in gift instrument: Written consent, court order; limitations; doctrine…

Sec. 45a-535. Short title: Uniform Prudent Management of Institutional Funds Act. Sections 45a-535 to 45a-535i, inclusive, may be cited as the “Uniform Prudent Management of Institutional Funds Act”. (P.A. 07-91, S. 28.)

Sec. 45a-535a. Definitions. As used in sections 45a-535 to 45a-535i, inclusive, unless the context otherwise requires: (1) “Charitable purpose” means the relief of poverty, the advancement of education or religion, the promotion of health, the promotion of governmental purposes a…

Sec. 45a-535b. Standard of conduct in managing and investing institutional funds. (a) Subject to the intent of a donor expressed in a gift instrument, an institution, in managing and investing an institutional fund, shall consider the charitable purposes of the institution and th…

Sec. 45a-535c. Appropriation for expenditure or accumulation of endowment fund. Factors in making a determination to appropriate or accumulate. Rules of construction. (a) Subject to the intent of a donor expressed in a gift instrument, an institution may appropriate for expenditu…

Sec. 45a-535d. Delegation of management and investment of institutional fund. (a) Subject to any specific limitation set forth in a gift instrument or in law other than sections 45a-535 to 45a-535i, inclusive, an institution may delegate to an external agent the management and in…

Sec. 45a-535e. Release or modification of restrictions contained in gift instrument on management, investment or purpose of institutional fund. (a) With the donor's consent in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift i…

Sec. 45a-535f. Determination of compliance with act. Compliance with sections 45a-535 to 45a-535i, inclusive, is determined in light of the facts and circumstances existing at the time a decision is made or an action is taken. (P.A. 07-91, S. 34.)

Sec. 45a-535g. Application to existing institutional funds. Sections 45a-535 to 45a-535i, inclusive, apply to institutional funds existing on or established after October 1, 2007. As applied to institutional funds existing on October 1, 2007, sections 45a-535 to 45a-535i, inclusi…

Sec. 45a-535h. Relation of act to Electronic Signatures in Global and National Commerce Act. Sections 45a-535 to 45a-535i, inclusive, modify, limit and supersede the Electronic Signatures in Global and National Commerce Act, 15 USC Section 7001 et seq., but do not modify, limit o…

Sec. 45a-535i. Uniformity of application and construction of act. In applying and construing sections 45a-535 to 45a-535h, inclusive, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. (P.A. 07-…

Secs. 45a-536 to 45a-539. Reserved for future use. PART VI POWERS IN TRUST INSTRUMENTS ACT

Sec. 45a-540. (Formerly Secs. 45-100a to 45-100c). Powers in trust instruments act. Sections 45-100a to 45-100c, inclusive, are repealed, except said sections shall continue in effect insofar as any instrument executed prior to January 1, 1970, incorporated said sections. (1967, …

Sec. 45a-541. Short title: Connecticut Uniform Prudent Investor Act. Sections 45a-541 to 45a-541l, inclusive, may be cited as the “Connecticut Uniform Prudent Investor Act”. (P.A. 97-140, S. 1.)

Sec. 45a-541a. Prudent investor rule. (a) Except as provided in subsection (b) of this section, a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule, as set forth in sections 45a-541 to 45a-541l, inc…

Sec. 45a-541b. Standard of care. Portfolio strategy. Risk and return objectives. (a) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements and other circumstances of the trust. In satisfying this …

Sec. 45a-541c. Diversification. A trustee shall diversify the investments of the trust unless the trustee reasonably determines that, because of special circumstances, the purposes of the trust are better served without diversifying. (P.A. 97-140, S. 4.)

Sec. 45a-541d. Duties at inception of trusteeship. Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the …

Sec. 45a-541e. Loyalty. A trustee shall invest and manage the trust assets solely in the interest of the beneficiaries. (P.A. 97-140, S. 6.)

Sec. 45a-541f. Impartiality. If a trust has two or more beneficiaries, the trustee shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries. (P.A. 97-140, S. 7.)

Sec. 45a-541g. Investment costs. In investing and managing trust assets, a trustee may only incur costs that are appropriate and reasonable in relation to the assets, the purposes of the trust and the skills of the trustee. (P.A. 97-140, S. 8.)

Sec. 45a-541h. Reviewing compliance. The prudent investor rule expresses a standard of conduct, not outcome. Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action. (P.A. 97-140, S. 9.…

Sec. 45a-541i. Delegation of investment and management functions. (a) A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill and caut…

Sec. 45a-541j. Language invoking standards of act. The following terms or comparable language in a trust instrument, unless otherwise limited or modified by the instrument, authorizes any investment or strategy permitted under sections 45a-541 to 45a-541l, inclusive: “Investments…

Sec. 45a-541k. Uniformity of application and construction. Sections 45a-541 to 45a-541l, inclusive, shall be applied and construed to effectuate their general purpose to make uniform the law with respect to the subject of said sections among the states enacting them. (P.A. 97-140…

Sec. 45a-541l. Applicability. Sections 45a-541 to 45a-541l, inclusive, apply to trusts existing on and created after October 1, 1997. As applied to trusts existing on October 1, 1997, sections 45a-541 to 45a-541l, inclusive, govern only decisions or actions occurring after that d…

Sec. 45a-542. Short title: Connecticut Principal and Income Act. Sections 45a-542 to 45a-542ff, inclusive, may be cited as the “Connecticut Principal and Income Act (1999)”. (P.A. 99-164, S. 1, 36.) History: P.A. 99-164 effective January 1, 2000.

Sec. 45a-542a. Definitions. As used in sections 45a-542 to 45a-542ff, inclusive: (1) “Accounting period” means a calendar year unless another twelve-month period is selected by a fiduciary. The term includes a portion of a calendar year or other twelve-month period that begins wh…

Sec. 45a-542aa. Transfers from income to reimburse principal. (a) If a trustee makes or expects to make a principal disbursement described in this section, the trustee may transfer an appropriate amount from income to principal in one or more accounting periods to reimburse princ…

Sec. 45a-542b. Fiduciary duties. (a) In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of sections 45a-542d to 45a-542h, inclusive, a fiduciary: (1) Shall administer a trust or estate in accordance with th…

Sec. 45a-542bb. Income taxes. (a) A tax required to be paid by a trustee based on receipts allocated to income must be paid from income. (b) A tax required to be paid by a trustee based on receipts allocated to principal must be paid from principal, even if the tax is called an i…

Sec. 45a-542c. Trustee's power to adjust. (a) A trustee may adjust between principal and income to the extent the trustee considers necessary if the trustee invests and manages trust assets as a prudent investor, the terms of the trust describe the amount that may or must be dist…

Sec. 45a-542cc. Adjustments between principal and income as result of taxes. (a) A fiduciary may make adjustments between principal and income to offset the shifting of economic interests or tax benefits between income beneficiaries and remainder beneficiaries which arise from: (…

Sec. 45a-542d. Determination and distribution of income interest of decedent's estate or in trust after trust ends. After a decedent dies, in the case of an estate, or after an income interest in a trust ends, the following rules apply: (1) A fiduciary of an estate or of a termin…

Sec. 45a-542dd. Uniformity of application and construction. In applying and construing sections 45a-542 to 45a-542ff, inclusive, consideration must be given to the fact that this is a uniform law and the need to promote uniformity of the law with respect to its subject matter amo…

Sec. 45a-542e. Distribution to beneficiaries. (a) Each beneficiary described in subdivision (4) of section 45a-542d is entitled to receive a portion of the net income equal to the beneficiary's fractional interest in undistributed principal assets, using values as of the distribu…

Sec. 45a-542ee. Severability clause. If any provision of sections 45a-542 to 45a-542ff, inclusive, or their application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of said sections which can be given effect withou…

Sec. 45a-542f. Right to income. (a) An income beneficiary is entitled to net income from the date on which the income interest begins. An income interest begins on the date specified in the terms of the trust or, if no date is specified, on the date an asset becomes subject to a …

Sec. 45a-542ff. Application to existing trust or decedent's estate. Sections 45a-542 to 45a-542ff, inclusive, apply to every trust or decedent's estate existing on or after January 1, 2000, except as otherwise expressly provided in the will or terms of the trust or in said sectio…

Sec. 45a-542g. Apportionment of receipts and disbursements when decedent dies or interest income begins. (a) A trustee shall allocate an income receipt or disbursement other than one to which subdivision (1) of section 45a-542d applies to principal if its due date occurs before a…

Sec. 45a-542h. Apportionment when income interest ends. (a) In this section, “undistributed income” means net income received before the date on which an income interest ends. The term does not include an item of income or expense that is due or accrued or net income that has bee…

Sec. 45a-542i. Character of receipts. (a) In this section, “entity” means a corporation, partnership, limited liability company, regulated investment company, real estate investment trust, common trust fund or any other organization in which a trustee has an interest other than a…