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

Sec. 45a-542j. Distribution from trust or estate. A trustee shall allocate to income an amount received as a distribution of income from a trust or an estate in which the trust has an interest other than a purchased interest, and shall allocate to principal an amount received as …

Sec. 45a-542k. Business and other activities conducted by trustee. (a) If a trustee who conducts a business or other activity determines that it is in the best interest of all the beneficiaries to account separately for the business or activity instead of accounting for it as par…

Sec. 45a-542l. Principal receipts. A trustee shall allocate to principal: (1) To the extent not allocated to income under sections 45a-542 to 45a-542ff, inclusive, assets received from a transferor during the transferor's lifetime, a decedent's estate, a trust with a terminating …

Sec. 45a-542m. Rental property. To the extent that a trustee accounts for receipts from rental property pursuant to this section, the trustee shall allocate to income an amount received as rent of real or personal property, including an amount received for cancellation or renewal…

Sec. 45a-542n. Obligation to pay money. (a) An amount received as interest, whether determined at a fixed, variable or floating rate, on an obligation to pay money to the trustee, including an amount received as consideration for prepaying principal, must be allocated to income w…

Sec. 45a-542o. Insurance policies and similar contracts. (a) Except as otherwise provided in subsection (b) of this section, a trustee shall allocate to principal the proceeds of a life insurance policy or other contract in which the trust or its trustee is named as beneficiary, …

Sec. 45a-542p. Insubstantial allocations not required. If a trustee determines that an allocation between principal and income required by section 45a-542q, 45a-542r, 45a-542s, 45a-542t or 45a-542w is insubstantial, the trustee may allocate the entire amount to principal unless o…

Sec. 45a-542q. Deferred compensation, annuities and similar payments. Separate funds. (a) In this section: (1) “Payment” means a payment that a trustee may receive over a fixed number of years or during the life of one or more individuals because of services rendered or property …

Sec. 45a-542r. Liquidating asset. (a) In this section, “liquidating asset” means an asset whose value will diminish or terminate because the asset is expected to produce receipts for a period of limited duration. The term includes a leasehold, patent, copyright, royalty right and…

Sec. 45a-542s. Minerals, water and other natural resources. (a) To the extent that a trustee accounts for receipts from an interest in minerals or other natural resources pursuant to this section, the trustee shall allocate them as follows: (1) If received as nominal delay rental…

Sec. 45a-542t. Timber. (a) To the extent that a trustee accounts for receipts from the sale of timber and related products pursuant to this section, the trustee shall allocate the net receipts: (1) To income to the extent that the amount of timber removed from the land does not e…

Sec. 45a-542u. Property not productive of income. (a) If a marital deduction is allowed for all or part of a trust whose assets consist substantially of property that does not provide the spouse with sufficient income from or use of the trust assets, and if the amounts that the t…

Sec. 45a-542v. Derivatives and options. (a) In this section, “derivative” means a contract or financial instrument or a combination of contracts and financial instruments which gives a trust the right or obligation to participate in some or all changes in the price of a tangible …

Sec. 45a-542w. Asset-backed securities. (a) In this section, “asset-backed security” means an asset whose value is based upon the right it gives the owner to receive distributions from the proceeds of financial assets that provide collateral for the security. The term includes an…

Sec. 45a-542x. Disbursements from income. A trustee shall make the following disbursements from income to the extent that they are not disbursements to which subparagraph (B) or (C) of subdivision (2) of section 45a-542d applies: (1) One-half of the regular compensation of the tr…

Sec. 45a-542y. Disbursements from principal. (a) A trustee shall make the following disbursements from principal: (1) The remaining one-half of the disbursements described in subdivisions (1) and (2) of section 45a-542x; (2) All of the trustee's compensation calculated on princip…

Sec. 45a-542z. Transfers from income to principal for depreciation. (a) In this section, “depreciation” means a reduction in value due to wear, tear, decay, corrosion or gradual obsolescence of a fixed asset having a useful life of more than one year. (b) A trustee may transfer t…

Sec. 45a-543. Determination by court re abuse of discretion by fiduciary. (a) A court shall not change a fiduciary's decision to exercise a discretionary power conferred by sections 45a-542 to 45a-542ff, inclusive, unless it determines that the decision was an abuse of the fiduci…

Secs. 45a-544 and 45a-545. Reserved for future use. PART IX CONNECTICUT UNIFORM TRUST DECANTING ACT

Sec. 45a-545a. Short title: Connecticut Uniform Trust Decanting Act. The provisions of this section and sections 45a-545b to 45a-545cc, inclusive, may be cited as the “Connecticut Uniform Trust Decanting Act”. (P.A. 24-104, S. 1.) History: P.A. 24-104 effective January 1, 2025.

Sec. 45a-545aa. Obligations. A debt, liability or other obligation enforceable against property of a first trust is enforceable to the same extent against the property when held by the second trust after exercise of the decanting power. (P.A. 24-104, S. 27.) History: P.A. 24-104 …

Sec. 45a-545b. Definitions. As used in this section and sections 45a-545c to 45a-545cc, inclusive: (1) “Appointive property” means the property or property interest subject to a power of appointment. (2) “Ascertainable standard” has the same meaning as provided in section 45a-499…

Sec. 45a-545bb. Uniformity of application and construction. In applying and construing the provisions of the Connecticut Uniform Trust Decanting Act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that ena…

Sec. 45a-545c. Scope. (a) Except as provided in subsections (b) to (e), inclusive, of this section, sections 45a-545a to 45a-545cc, inclusive, apply to an express trust that is irrevocable, whether testamentary or inter vivos, or revocable by the settlor only with the consent of …

Sec. 45a-545cc. Relation to Electronic Signatures in Global and National Commerce Act. Sections 45a-545a to 45a-545cc, inclusive, modify, limit and supersede the Electronic Signatures in Global and National Commerce Act, 15 USC 7001 et seq., but do not modify, limit or supersede …

Sec. 45a-545d. Fiduciary duty. (a) In exercising the decanting power, an authorized fiduciary shall act in accordance with its fiduciary duties, including the duty to act in accordance with the purposes of the first trust. (b) Sections 45a-545a to 45a-545cc, inclusive, do not cre…

Sec. 45a-545e. Application; governing law. Sections 45a-545a to 45a-545cc, inclusive, apply to any trust whether established before, on or after January 1, 2025, that: (1) Has its principal place of administration in this state, including a trust whose principal place of administ…

Sec. 45a-545f. Reasonable reliance. A trustee or other person that reasonably relies on the validity of a distribution of part or all of the property of a trust to another trust, or a modification of a trust, under sections 45a-545a to 45a-545cc, inclusive, law of this state othe…

Sec. 45a-545g. Notice; exercise of decanting power. (a) Except as provided in sections 45a-545a to 45a-545cc, inclusive, an authorized fiduciary may exercise the decanting power without the consent of any person and without court approval. (b) Except as provided in subsection (d)…

Sec. 45a-545h. Representation. (a) Notice to a person with authority to represent and bind another person under a first-trust instrument or the Connecticut Uniform Trust Code has the same effect as notice given directly to the person represented. (b) Consent of or waiver by a per…

Sec. 45a-545i. Court involvement. (a) Upon a petition by an authorized fiduciary, a person entitled to notice under subsection (b) of section 45a-545g, a beneficiary or, with respect to a charitable interest the Attorney General or other person that has standing to enforce the ch…

Sec. 45a-545j. Formalities. An exercise of the decanting power shall be made in a record signed by an authorized fiduciary. The signed record shall, directly or by reference to the notice required by section 45a-545g, identify the first trust and the second trust or trusts and st…

Sec. 45a-545k. Decanting power under expanded distributive discretion. (a) Subject to subsection (b) of this section and section 45a-545n, an authorized fiduciary that has expanded distributive discretion over the principal of a first trust for the benefit of one or more current …

Sec. 45a-545l. Decanting power under limited distributive discretion. (a) As used in this section, “limited distributive discretion” means a discretionary power of distribution that is limited to an ascertainable standard or a reasonably definite standard. (b) An authorized fiduc…

Sec. 45a-545m. Trust for beneficiary with disability. (a) As used in this section: (1) “Beneficiary with a disability” means a beneficiary of a first trust who the special-needs fiduciary believes may qualify for governmental benefits based on disability, whether or not the benef…

Sec. 45a-545n. Protection of charitable interest. Responsibilities of Attorney General. (a) As used in this section: (1) “Determinable charitable interest” means a charitable interest that is a right to a mandatory distribution currently, periodically, on the occurrence of a spec…

Sec. 45a-545o. Trust limitation on decanting. (a) An authorized fiduciary may not exercise the decanting power to the extent the first-trust instrument expressly prohibits exercise of: (1) The decanting power; or (2) a power granted by state law to the fiduciary to distribute par…

Sec. 45a-545p. Change in compensation. (a) If a first-trust instrument specifies an authorized fiduciary's compensation, the fiduciary may not exercise the decanting power to increase the fiduciary's compensation above the specified compensation unless: (1) All qualified benefici…

Sec. 45a-545q. Relief from liability and indemnification. (a) Except as provided in this section, a second-trust instrument may not relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-trust instrument. (b) A second-trust instrumen…

Sec. 45a-545r. Removal or replacement of authorized fiduciary. An authorized fiduciary may not exercise the decanting power to modify a provision in a first-trust instrument granting another person power to remove or replace the fiduciary unless: (1) The person holding the power …

Sec. 45a-545s. Tax-related limitations. (a) As used in this section: (1) “Grantor trust” means a trust as to which a settlor of a first trust is considered the owner under Sections 671 to 677, inclusive, and Section 679 of the Internal Revenue Code of 1986, or any subsequent corr…

Sec. 45a-545t. Duration of second trust. (a) Subject to subsection (b) of this section and section 45a-545n, a second trust may have a duration that is the same as or different from the duration of the first trust. (b) To the extent that property of a second trust is attributable…

Sec. 45a-545u. Need to distribute not required. An authorized fiduciary may exercise the decanting power whether or not under the first trust's discretionary distribution standard the fiduciary would have made, or could have been compelled to make, a discretionary distribution of…

Sec. 45a-545v. Saving provision. (a) If exercise of the decanting power would be effective under sections 45a-545a to 45a-545cc, inclusive, except that the second-trust instrument in part does not comply with sections 45a-545a to 45a-545cc, inclusive, the exercise of the power is…

Sec. 45a-545w. Trust for care of animal. (a) As used in this section: (1) “Animal trust” means a trust or an interest in a trust created to provide for the care of one or more animals. (2) “Protector” means a person appointed in an animal trust to enforce the trust on behalf of t…

Sec. 45a-545x. Terms of second trust. Any reference in the Connecticut Uniform Trust Code to a trust instrument or terms of the trust includes a second-trust instrument and the terms of the second trust. (P.A. 24-104, S. 24.) History: P.A. 24-104 effective January 1, 2025.

Sec. 45a-545y. Settlor. (a) For purposes of the law of this state other than sections 45a-545a to 45a-545cc, inclusive, and subject to subsection (b) of this section, a settlor of a first trust is deemed to be the settlor of the second trust with respect to the portion of the pri…

Sec. 45a-545z. Later-discovered property. (a) Except as provided in subsection (c) of this section, if exercise of the decanting power was intended to distribute all the principal of the first trust to one or more second trusts, later-discovered property belonging to the first tr…