Substitute Senate Bill No. 1057

Public Act No. 01-69

AN ACT CONCERNING BENEFICIARY INTERESTS IN TRUST MATTERS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) As used in sections 1 to 6, inclusive, of this act:

(1) "Trust matters" means (A) any property or interest in property held as part of a trust; (B) actions by or against a trust or by or against the trustee of such trust, in its capacity as such trustee; (C) proceedings for the interpretation of any document creating a trust or other instrument pursuant to which property is held by a trustee; (D) accountings, whether intermediate or final, of any trustee; and (E) any other matters concerning the administration of a trust. Any reference to a trust in this act shall include both testamentary and nontestamentary trusts.

(2) "Represent" shall not be construed to permit a person who has not been admitted as an attorney under the provisions of section 51-80 of the general statutes to serve as legal counsel for any other person in a trust matter.

Sec. 2. (NEW) In connection with trust matters, to the extent there is no conflict of interest between the holder of a power of appointment and the persons represented with respect to the particular question or dispute: (1) The sole holder or all coholders of any power of appointment, whether or not presently exercisable, shall represent the potential appointees; and (2) the sole holder or all coholders of a power of revocation or a general power of appointment, including one in the form of a power of amendment, shall also represent the takers in default of the exercise thereof.

Sec. 3. (NEW) In connection with trust matters, to the extent there is no conflict of interest between the representative and the person represented or among those being represented with respect to a particular question or dispute: (1) A court appointed conservator or guardian of the estate may represent and bind the estate that the conservator or guardian controls; (2) a court appointed conservator or guardian of the person may represent and bind the ward if a conservator or guardian of the ward's estate has not been appointed; (3) an agent having authority to do so may represent and bind the principal; (4) a trustee may represent and bind the beneficiaries of the trust; (5) an executor or administrator of a decedent's estate may represent and bind persons interested in the estate; and (6) if a conservator or guardian has not been appointed, a parent may represent and bind the parent's minor or unborn child.

Sec. 4. (NEW) In connection with trust matters, unless otherwise represented, a minor, incapacitated or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another person having a substantially identical interest with respect to the particular question or dispute, but only to the extent there is no conflict of interest between the representative and the person being represented.

Sec. 5. (NEW) (a) If the court determines that an interest is not represented under sections 2 to 4, inclusive, of this act, or that the otherwise available representation might be inadequate, the court may appoint a guardian ad litem to receive notice, give consent, and otherwise represent, bind and act on behalf of a minor, incapacitated or unborn individual, or a person whose identity or location is unknown. A guardian ad litem may be appointed to represent several persons or interests.

(b) A guardian ad litem may act on behalf of the individual represented with respect to any trust matter, whether or not a judicial proceeding is pending.

(c) In making decisions in a trust matter, a guardian ad litem may consider general benefit accruing to the living members of the individual's family.

Sec. 6. (NEW) (a) Notice to a person who may represent and bind another person under sections 2 to 5, inclusive, of this act, has the same effect as if notice were given directly to the other person.

(b) The consent of a person who may represent and bind another person under sections 2 to 5, inclusive, of this act, is binding on the person represented, unless the person represented objects to the representation before the consent would otherwise have become effective.

(c) Notwithstanding any provisions of the general statutes, sections 2 to 6, inclusive, of this act shall apply to all judicial proceedings and all nonjudicial settlements, agreements or acts pertaining to trust matters.

Approved June 6, 2001