Connecticut Seal

General Assembly

 

Raised Bill No. 6441

January Session, 2011

 

LCO No. 3835

 

*03835_______JUD*

Referred to Committee on Judiciary

 

Introduced by:

 

(JUD)

 

AN ACT ADOPTING THE CONNECTICUT UNIFORM TRUST CODE.

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

Section 1. (NEW) (Effective July 1, 2011) Sections 1 to 86, inclusive, of this act may be cited as the "Connecticut Uniform Trust Code".

Sec. 2. (NEW) (Effective July 1, 2011) Sections 1 to 86, inclusive, of this act apply to express trusts, whether testamentary or inter vivos and whether charitable or noncharitable, and trusts created pursuant to a statute, judgment or decree that requires the trust to be administered in the manner of an express trust, except that sections 1 to 86, inclusive, of this act shall not apply to statutory trusts created pursuant to chapter 615 of the general statutes to the extent inconsistent with the terms of chapter 615 of the general statutes.

Sec. 3. (NEW) (Effective July 1, 2011) As used in sections 1 to 86, inclusive, of this act:

(1) "Action", with respect to an act of a trustee, includes a failure to act.

(2) "Beneficiary" means a person that (A) has a present or future beneficial interest in a trust, vested or contingent, or (B) in a capacity other than that of trustee, holds a power of appointment over trust property. "Beneficiary" does not include an appointee under a power of appointment unless and until the power is exercised and the trustee has knowledge of the exercise and the identity of the appointee.

(3) "Beneficiary surrogate" means a person, other than a trustee, designated by the settlor in the trust instrument to receive notices, information and reports otherwise required to be provided to a current beneficiary under subdivision (7) of subsection (b) of section 5 of this act.

(4) "Charitable trust" means a trust, or portion of a trust, created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes or other purposes which benefit the community.

(5) "Current beneficiary" means a beneficiary who, on the date the beneficiary's qualification is determined, is a distributee or permissible distributee of trust income or principal.

(6) "Conservator" means a person appointed by the court to administer the estate of a minor or adult individual and includes a guardian of the estate of a minor.

(7) "District" means, for purposes of venue, the district of the court having or accepting jurisdiction over the proceeding.

(8) "Environmental law" means a federal, state or local law, rule, regulation or ordinance relating to protection of the environment.

(9) "Guardian" means a person appointed by the court to make decisions regarding the support, care, education, health and welfare of a minor or adult individual and includes a conservator of the person of an adult, but does not include a guardian ad litem.

(10) "Interests of the beneficiaries" means the beneficial interests provided in the terms of the trust.

(11) "Inter vivos trust" means any trust that is not a testamentary trust.

(12) "Jurisdiction", with respect to a geographic area, includes a state or country.

(13) "Mandatory distribution" means a distribution of income or principal that the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. "Mandatory distribution" does not include a distribution subject to the exercise of the trustee's discretion, regardless of whether the terms of the trust (A) include a support or other standard to guide the trustee in making distribution decisions, or (B) provide that the trustee "may" or "shall" make discretionary distributions, including distributions pursuant to a support or other standard.

(14) "Permissible distributee" means a beneficiary who is currently entitled to or eligible to receive a distribution from a trust.

(15) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, court, government, governmental subdivision, agency or instrumentality, public corporation or any other legal or commercial entity.

(16) "Power of withdrawal" means a presently exercisable general power of appointment other than a power exercisable only upon consent of the trustee or a person holding an adverse interest.

(17) "Property" means anything that may be the subject of ownership, whether real or personal and whether legal or equitable, or any interest therein.

(18) "Qualified beneficiary" means a beneficiary who, on the date the beneficiary's qualification is determined: (A) Is a distributee or permissible distributee of trust income or principal; (B) would be a distributee or permissible distributee of trust income or principal if the interests of the distributees described in subparagraph (A) of this subdivision terminated on such date without causing the trust to terminate; or (C) would be a distributee or permissible distributee of trust income or principal if the trust terminated on such date.

(19) "Revocable", as applied to a trust, means revocable by the settlor without the consent of the trustee or a person holding an adverse interest.

(20) "Settlor" means a person, including a testator, who creates or contributes property to a trust. If more than one person creates or contributes property to a trust, each person is a settlor of the portion of the trust property attributable to such person's contribution, except to the extent another person has the power to revoke or withdraw such portion.

(21) "Spendthrift provision" means a term of a trust that restrains both voluntary and involuntary transfer of a beneficiary's interest.

(22) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands or any territory or insular possession subject to the jurisdiction of the United States, and includes an Indian tribe or band recognized by federal law or formally acknowledged by a state.

(23) "Terms of a trust" or "terms of the trust" means the manifestation of the settlor's intent regarding a trust's provisions as expressed in the trust instrument or as may be established by other evidence that would be admissible in a judicial proceeding.

(24) "Testamentary trust" means a trust created under a will or any other trust created, authorized or approved by order of a probate court.

(25) "Trust instrument" means any instrument executed by the settlor that contains terms of the trust, including any amendments thereto.

(26) "Trustee" includes an original, additional and successor trustee and a cotrustee.

Sec. 4. (NEW) (Effective July 1, 2011) (a) Subject to subsection (b) of this section, for the purposes of sections 1 to 86, inclusive, of this act, a person has knowledge of a fact if the person (1) has actual knowledge of the fact, (2) has received a notice or notification of the fact, or (3) from all the facts and circumstances known to the person at the time in question, has reason to know the fact.

(b) An organization that conducts activities through employees has notice or knowledge of a fact involving a trust only from the time the information was received by an employee having responsibility to act for the trust, or from the time the information would have been brought to the employee's attention if the organization had exercised reasonable diligence. An organization exercises reasonable diligence if it maintains reasonable routines for communicating significant information to the employee having responsibility to act for the trust and there is reasonable compliance with the routines. Reasonable diligence does not require an employee of the organization to communicate information unless the communication is part of the individual's regular duties or the individual knows a matter involving the trust would be materially affected by the information.

Sec. 5. (NEW) (Effective July 1, 2011) (a) Except as otherwise provided in the terms of the trust, sections 1 to 86, inclusive, of this act govern the duties and powers of a trustee, relations among trustees and the rights and interests of a beneficiary.

(b) The terms of a trust prevail over any provision of sections 1 to 86, inclusive, of this act, except: (1) The requirements for creating a trust; (2) the duty of a trustee to act in good faith and in accordance with the terms and purposes of the trust; (3) the requirement of section 24 of this act that a trust have a purpose that is lawful, not contrary to public policy and possible to achieve; (4) the power of the court to modify or terminate a trust under sections 30 to 36, inclusive, of this act; (5) the effect of a spendthrift provision and the rights of certain creditors and assignees to reach a trust as provided in sections 38 to 45, inclusive, of this act; (6) the power of the court under section 51 of this act to require, dispense with, modify or terminate a bond; (7) the duty under subdivision (2) of subsection (a) of section 67 of this act to respond to the request of a current beneficiary of an irrevocable trust for information reasonably related to the administration of a trust; (8) the effect of an exculpatory term under section 78 of this act; (9) the rights under sections 80 to 83, inclusive, of this act of a person other than a trustee or beneficiary; (10) periods of limitation for commencing a judicial proceeding; (11) the power of the court to take such action and exercise such jurisdiction as may be necessary in the interests of justice; (12) the subject-matter jurisdiction of the court and venue for commencing a proceeding as provided in sections 14 and 15 of this act; or (13) the provisions of sections 1 to 86, inclusive, of this act specifically dealing with the supervision of testamentary trusts by the court.

(c) With respect to one or more of the current or qualified beneficiaries, the settlor, in the trust instrument, may waive or modify the duties of the trustee described in subdivision (7) of subsection (b) of this section. Such a waiver or modification may be made only by the settlor designating in the trust instrument one or more beneficiary surrogates to receive any notices, information or reports otherwise required under said subdivision to be provided to the current or qualified beneficiaries. If the settlor makes such a waiver or modification, the trustee shall provide such notices, information or reports to the beneficiary surrogates, in lieu of providing them to the current or qualified beneficiaries. The beneficiary surrogates shall act in good faith to protect the interests of the current or qualified beneficiaries for whom the notices, information or reports are received. The beneficiary surrogates are deemed to be representatives of the current or qualified beneficiaries not provided such notices, information or reports for all purposes, except for the time limitation for a beneficiary to commence an action against a trustee for breach of trust as provided in subsections (a) and (b) of section 75 of this act.

Sec. 6. (NEW) (Effective July 1, 2011) The common law of trusts and principles of equity supplement sections 1 to 86, inclusive, of this act, except to the extent modified by sections 1 to 86, inclusive, of this act or another statute of this state.

Sec. 7. (NEW) (Effective July 1, 2011) The meaning and effect of the terms of a trust are determined by: (1) The law of the jurisdiction designated in the terms of the trust, unless the designation of such jurisdiction's law is contrary to a strong public policy of the jurisdiction having the most significant relationship to the matter at issue; or (2) in the absence of a controlling designation in the terms of the trust, the law of the jurisdiction having the most significant relationship to the matter at issue.

Sec. 8. (NEW) (Effective July 1, 2011) (a) Without precluding other means for establishing a sufficient connection with the designated jurisdiction, terms of a trust designating the principal place of administration are valid and controlling if: (1) A trustee's principal place of business is located in or a trustee is a resident of the designated jurisdiction; or (2) all or part of the administration occurs in the designated jurisdiction.

(b) A trustee is under a continuing duty to administer the trust at a place appropriate to its purposes, its administration and the interests of the beneficiaries.

(c) The principal place of administration of a testamentary trust means (1) in the case of a trust created under a will, in the district in which the settlor's estate was or is being administered, (2) in the case of any other trust created, authorized or approved by order of the Probate Court, in the district in which the court creating the trust is located, or (3) in the case of a trust transferred to this state subject to the continuing supervision of the court, the district in which the trustee's principal place of business is located, where the trustee resides or where all or part of the administration occurs.

(d) Without precluding the right of the court to order, approve or disapprove a transfer, the trustee of an inter vivos trust, and the trustee of a testamentary trust with court approval, in furtherance of the duty prescribed by subsection (b) of this section, may transfer the trust's principal place of administration to another state or to a jurisdiction outside of the United States.

(e) The trustee of an inter vivos trust shall notify the qualified beneficiaries of a transfer of a trust's principal place of administration to another state or to a jurisdiction outside of the United States not less than sixty days before initiating the transfer. The notice of the transfer shall include: (1) The name of the jurisdiction to which the principal place of administration is to be transferred; (2) the address and telephone number at the new location at which the trustee can be contacted; (3) an explanation of the reasons for the transfer; and (4) the date on which the transfer is anticipated to occur.

(f) In connection with a transfer of the trust's principal place of administration, the trustee may transfer some or all of the trust property to a successor trustee designated in the terms of the trust or appointed pursuant to section 53 of this act.

Sec. 9. (NEW) (Effective July 1, 2011) (a) Notice to a person under sections 1 to 86, inclusive, of this act, or the sending of a document to a person under sections 1 to 86, inclusive, of this act, shall be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. Permissible methods of notice or for sending a document include first-class mail, personal delivery, delivery to the person's last-known place of residence or place of business, or a properly directed electronic message, if the person has consented in advance to receive notices or documents by electronic message.

(b) Notice otherwise required under sections 1 to 86, inclusive, of this act, or a document otherwise required to be sent under sections 1 to 86, inclusive, of this act need not be provided to a person whose identity or location is unknown to and not reasonably ascertainable by the trustee.

(c) Notice under sections 1 to 86, inclusive, of this act or the sending of a document under sections 1 to 86, inclusive, of this act may be waived by the person to be notified or to be sent the document.

(d) Notice of a judicial proceeding shall be given as provided in any applicable court rules.

Sec. 10. (NEW) (Effective July 1, 2011) (a) Whenever notice to qualified beneficiaries of a trust is required under sections 1 to 86, inclusive, of this act, the trustee shall also give notice to any other current beneficiary who has sent the trustee a request for notice.

(b) A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary under sections 1 to 86, inclusive, of this act if the charitable organization, on the date the charitable organization's qualification is being determined: (1) Is a distributee or permissible distributee of trust income or principal; (2) would be a distributee or permissible distributee of trust income or principal upon the termination of the interests of other distributees or permissible distributees then receiving or eligible to receive distributions; or (3) would be a distributee or permissible distributee of trust income or principal if the trust terminated on such date.

(c) The Attorney General has the rights of a qualified beneficiary with respect to a charitable trust having its principal place of administration in this state.

(d) A person appointed to enforce a trust created for the care of an animal or another noncharitable purpose as provided in section 28 or 29 of this act has the rights of a qualified beneficiary under sections 1 to 86, inclusive, of this act.

(e) A charitable organization shall only be granted the rights of a qualified beneficiary in this section if its interest in a charitable trust is not otherwise subject to any power of appointment, removal or any other power of termination on the date that its qualification is otherwise determined under this section.

Sec. 11. (NEW) (Effective July 1, 2011) (a) For the purposes of this section, "interested persons" means persons whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the court.

(b) Except as otherwise provided in subsections (c) and (e) of this section, interested persons may enter into a binding nonjudicial settlement agreement with respect to any matter involving an inter vivos trust.

(c) A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes terms and conditions that could be properly approved by the court under sections 1 to 86, inclusive, of this act or other applicable law.

(d) Matters that may be resolved by a nonjudicial settlement agreement include: (1) The interpretation or construction of the terms of the trust; (2) the approval of a trustee's report or accounting; (3) direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power; (4) the resignation or appointment of a trustee and the determination of a trustee's compensation; (5) transfer of a trust's principal place of administration; and (6) liability of a trustee for an action relating to the trust.

(e) A nonjudicial settlement agreement may not modify or terminate an irrevocable trust. Such modification or termination may only be accomplished under the provisions of sections 31 to 37, inclusive, of this act.

(f) Any interested person may request the court to approve a nonjudicial settlement agreement, to determine whether the representation as provided in sections 16 to 20, inclusive, of this act was adequate, and to determine whether the agreement contains terms and conditions the court could have properly approved.

Sec. 12. (NEW) (Effective July 1, 2011) (a) A testamentary trust is subject to continuing judicial supervision. For this purpose, a testamentary trust shall include any trust created under the laws of another jurisdiction, the principal place of administration of which is transferred to this state and expressly made subject to the continuing supervision of the court by the transferring court or document of transfer.

(b) The court may intervene in the administration of an inter vivos trust to the extent its jurisdiction is invoked by an interested person or as provided by law.

(c) An inter vivos trust is not subject to continuing judicial supervision.

(d) A judicial proceeding involving a trust may relate to any matter involving the trust's administration, including, but not limited to, a proceeding to: (1) Request instructions; (2) approve a nonjudicial settlement; (3) interpret or construe the terms of a trust; (4) determine the validity of a trust; (5) approve a trustee's report or accounting or compel a trustee to report or account; (6) review the actions of a trustee, including the exercise of a discretionary power; (7) accept the resignation of a trustee; (8) appoint or remove a trustee; (9) transfer a testamentary trust's principal place of administration or a testamentary trust's property to another jurisdiction; (10) modify or terminate a trust; (11) combine trusts or divide a trust; (12) determine liability of a trust for debts of a beneficiary and living settlor; (13) determine liability of a trust for debts, expenses of administration and statutory allowances chargeable against the estate of a deceased settlor; or (14) apply to a charitable trust the equitable doctrine of approximation, cy pres, equitable deviation and other principles of equity pertaining to charitable trusts.

Sec. 13. (NEW) (Effective July 1, 2011) (a) By accepting the trusteeship of a trust having its principal place of administration in this state, or by moving the principal place of administration to this state, the trustee submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust.

(b) With respect to their interests in the trust, the beneficiaries of a trust having its principal place of administration in this state are subject to the jurisdiction of the courts of this state regarding any matter involving the trust. By accepting a distribution from such a trust, the recipient submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust.

(c) This section does not preclude other methods of obtaining jurisdiction over a trustee, beneficiary or other person receiving property from the trust.

Sec. 14. (NEW) (Effective July 1, 2011) (a) The Probate Court has exclusive jurisdiction of proceedings in this state concerning the interim and final accounts of testamentary trustees.

(b) In any proceeding in the Probate Court that is or has become a contested matter, the Probate Court Administrator shall, on the motion of all interested parties, cite in within ten days a special assignment probate judge to hear only the contested portion of the matter. If the motion to cite a special assignment probate judge is not filed or consented to by all of the interested parties, the Probate Court shall transfer the contested portion of the matter within ten days to the Superior Court upon the request of any party and in accordance with the procedures provided in section 45a-186 of the general statutes. If the contested portion of a case is transferred to the Superior Court, the clerk of the Probate Court shall transmit certified copies of all relevant portions of the file to the clerk of the Superior Court. The Superior Court to which the contested matter was transferred may grant such relief as necessary to resolve the contested matter and shall then promptly transfer the matter back to the original probate court to complete any remaining uncontested matters, delivering to the clerk of the probate court a certified copy of the file and of the proceedings regarding the contested matter in the transferee court.

Sec. 15. (NEW) (Effective July 1, 2011) (a) Venue for a judicial proceeding in the Superior Court shall be as provided in chapter 890 of the general statutes.

(b) (1) Except as otherwise provided in subsection (c) of this section, venue for a judicial proceeding in a court of probate involving an inter vivos trust is, in the following order of priority: (A) In the district of this state in which the trust's principal place of administration is or will be located; (B) in the district of this state where any trustee resides or has a principal place of business; or (C) in the district of this state where the settlor's estate was or is being administered.

(2) Except as otherwise provided in subsection (c) of this section, venue for a judicial proceeding involving a testamentary trust is in the district of this state in which the trust's principal place of administration is located.

(c) (1) If an inter vivos trust has no trustee, venue for a judicial proceeding for the appointment of a trustee shall be, in the following order of priority: (A) In a district of this state in which a beneficiary resides; (B) in a district of this state in which any trust property is located; or (C) in the district of this state in which the trust's principal place of administration is located.

(2) If a testamentary trust has no trustee, venue for a judicial proceeding for the appointment of a trustee shall be in the district of this state in which the trust's principal place of administration is located as determined under subsection (c) of section 8 of this act.

(d) A judicial proceeding other than one described in subsection (b) or (c) of this section shall be commenced in accordance with the rules of venue applicable to civil actions.

Sec. 16. (NEW) (Effective July 1, 2011) (a) Notice to a person who may represent and bind another person under sections 16 to 20, inclusive, of this act has the same effect as if notice were given directly to such other person.

(b) The consent of a person who may represent and bind another person under sections 16 to 20, 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) Except as otherwise provided in section 47 of this act, a person who, pursuant to sections 16 to 20, inclusive, of this act may represent a settlor who lacks capacity may receive notice and give a binding consent on the settlor's behalf.

(d) Notwithstanding any provision of the general statutes, sections 16 to 20, inclusive, of this act shall apply to all judicial proceedings and all nonjudicial settlements, agreements or actions under sections 1 to 86, inclusive, of this act and under any other provisions of the general statutes pertaining to trust matters.

(e) For the purposes of this section, "represent" shall not be construed to permit a person who has not been admitted as an attorney pursuant to section 51-80 of the general statutes to serve as legal counsel for any other person in any matter arising under sections 1 to 86, inclusive, of this act.

Sec. 17. (NEW) (Effective July 1, 2011) 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. 18. (NEW) (Effective July 1, 2011) 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 conservator may represent and bind the estate that the conservator controls; (2) a guardian may represent and bind the ward if a conservator 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. 19. (NEW) (Effective July 1, 2011) Unless otherwise represented, a minor, an 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. 20. (NEW) (Effective July 1, 2011) (a) If the court determines that an interest is not represented pursuant to sections 16 to 20, 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, an 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 matter arising under sections 1 to 86, inclusive, of this act, whether or not a judicial proceeding concerning the trust is pending.

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

Sec. 21. (NEW) (Effective July 1, 2011) A trust may be created by: (1) Transfer of property to another person as trustee during the settlor's lifetime, by deed or otherwise, or by will or other disposition taking effect upon the settlor's death; (2) declaration by the owner of property that the owner holds identifiable property as trustee; (3) exercise of a power of appointment in favor of a trustee; (4) transfer of property pursuant to a statute or judgment that requires property to be administered in the manner of an express trust, including, but not limited to, a trust created by the guardian of the estate of a minor or by the conservator of an estate, or a trust described in 42 USC 1396p(d)(4), as from time to time amended; or (5) court order.

Sec. 22. (NEW) (Effective July 1, 2011) (a) A trust is created only if: (1) The settlor has capacity to create a trust; (2) the settlor indicates an intention to create the trust; (3) the trust has a definite beneficiary or is (A) a charitable trust, (B) a trust for the care of an animal, as provided in section 28 of this act, or (C) a trust for a noncharitable purpose, as provided in section 29 of this act; and (4) the trustee has duties to perform.

(b) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.

(c) A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.

Sec. 23. (NEW) (Effective July 1, 2011) An inter vivos trust is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation: (1) The settlor was domiciled, had a place of abode or was a national; (2) a trustee was domiciled or had a place of business; or (3) any trust property was located.

Sec. 24. (NEW) (Effective July 1, 2011) A trust may be created only to the extent its purposes are lawful, not contrary to public policy and possible to achieve.

Sec. 25. (NEW) (Effective July 1, 2011) (a) A charitable trust may be created for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes or other purposes the achievement of which is beneficial to the community.

(b) If the terms of a charitable trust do not indicate a particular charitable purpose or beneficiary, and if the trustee is not given discretion to select the charitable beneficiaries, the court may select one or more charitable purposes or beneficiaries. The selection shall be consistent with the settlor's intention to the extent it can be ascertained.

(c) The settlor of a charitable trust, among others, may maintain a proceeding to enforce the trust, but only if the settlor has expressly retained the right to do so in the trust instrument.

Sec. 26. (NEW) (Effective July 1, 2011) A trust is void to the extent its creation was induced by fraud, duress or undue influence.

Sec. 27. (NEW) (Effective July 1, 2011) Except as required by any provision of the general statutes other than sections 1 to 86, inclusive, of this act, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence.

Sec. 28. (NEW) (Effective July 1, 2011) (a) A trust may be created to provide for the care of an animal alive during the settlor's lifetime. The trust terminates upon the death of the animal or, if the trust was created to provide for the care of more than one animal alive during the settlor's lifetime, upon the death of the last surviving animal.

(b) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court. A person having an interest in the welfare of the animal may request the court to appoint a person to enforce the trust or to remove a person appointed.

(c) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use shall be distributed to the settlor, if then living, otherwise to the settlor's successors in interest.

Sec. 29. (NEW) (Effective July 1, 2011) Except as provided in section 28 of this act or any other provision of the general statutes, the following rules apply:

(1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee. The trust may not be enforced for more than ninety years.

(2) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court.

(3) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use. Except as otherwise provided in the terms of the trust, property not required for the intended use shall be distributed to the settlor, if then living, otherwise to the settlor's successors in interest.

Sec. 30. (NEW) (Effective July 1, 2011) In addition to the methods of termination prescribed in section 35 of this act, a noncharitable trust terminates to the extent the trust is revoked or expires pursuant to its terms, no purpose of the trust remains to be achieved, or the purposes of the trust have become unlawful or impossible to achieve. A charitable trust may be terminated only in accordance with the provisions of section 45a-520 of the general statutes.

Sec. 31. (NEW) (Effective July 1, 2011) A proceeding to approve or disapprove a proposed modification or termination under sections 32 to 34, inclusive, of this act, or trust combination or division under section 37 of this act, may be commenced by a trustee or beneficiary. The settlor of a charitable trust who has expressly provided for the right to do so in the trust instrument may maintain a proceeding to modify the trust under section 32 of this act.

Sec. 32. (NEW) (Effective July 1, 2011) (a) If, upon petition, the court finds that the settlor, the trustee and all qualified beneficiaries consent to the modification or termination of a noncharitable irrevocable trust, or of a charitable trust whose settlor has expressly provided for the right to do so in the trust instrument, the court may approve the modification or termination even if the modification or termination is inconsistent with a material purpose of the trust. A settlor's power to consent to a trust's modification or termination may be exercised by (1) an agent pursuant to a power of attorney only to the extent expressly authorized by the power of attorney and the terms of the trust, (2) the settlor's conservator with the approval of the court supervising the conservatorship, if an agent is not so authorized, or (3) the settlor's guardian with the approval of the court supervising the guardianship, if an agent is not so authorized and a conservator has not been appointed. This subsection does not apply to irrevocable trusts created before or to revocable trusts that become irrevocable before the effective date of this section.

(b) A noncharitable irrevocable trust, or a charitable trust whose settlor has expressly provided for the right to do so in the trust instrument, may be terminated or modified upon consent of the trustee and all of the qualified beneficiaries if the court concludes that the termination or modification is not inconsistent with a material purpose of the trust and the probable intent of the settlor.

Sec. 33. (NEW) (Effective July 1, 2011) Except as otherwise provided in section 34 of this act, if a particular charitable purpose becomes unlawful, impracticable or impossible to achieve: (1) The trust does not fail, in whole or in part; (2) the trust property does not revert to the settlor or the settlor's successors in interest; and (3) the court may apply cy pres to modify the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor's charitable purposes.

Sec. 34. (NEW) (Effective July 1, 2011) A provision in the terms of a charitable trust that would result in distribution of the trust property to a noncharitable beneficiary prevails over the power of the court under section 32 of this act to apply cy pres to modify or terminate the trust only if, when the provision takes effect: (1) Except as provided in section 45a-505 of the general statutes, the trust property is to revert to the settlor and the settlor is still living; or (2) fewer than twenty-one years have elapsed since the date of the trust's creation.

Sec. 35. (NEW) (Effective July 1, 2011) (a) If trust property has a total value less than one hundred fifty thousand dollars and after notice to the qualified beneficiaries, the trustee of a testamentary noncharitable trust who obtains court approval, or the trustee of an inter vivos noncharitable trust, with or without court approval, may terminate the trust if such trustee concludes that the termination is not inconsistent with the probable intent of the settlor and the value or character of the trust property is insufficient or inappropriate to justify the cost of administration.

(b) Upon termination of a trust under this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.

(c) This section does not apply to an easement for conservation or preservation.

Sec. 36. (NEW) (Effective July 1, 2011) To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effect.

Sec. 37. (NEW) (Effective July 1, 2011) After notice to the current beneficiaries, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts, if the result does not impair rights of any beneficiary or adversely affect achievement of the purposes of the trust.

Sec. 38. (NEW) (Effective July 1, 2011) (a) To the extent a beneficiary's interest in a trust is not subject to a spendthrift provision, except as otherwise provided in sections 38 to 45, inclusive, of this act, the court may authorize a creditor or assignee of the beneficiary to reach the beneficiary's interest by attachment of present or future distributions to or for the benefit of the beneficiary. The court may limit the award to such relief as is appropriate under the circumstances, provided, the court may not grant relief beyond the attachment of present or future distributions.

(b) (1) A trustee of a charitable trust and a person holding and administering an endowment fund, as defined in section 45a-527 of the general statutes, or an institutional fund, as defined in section 45a-527 of the general statutes, shall not collateralize, mortgage, hypothecate, pledge or otherwise encumber the following assets, if the source of the asset was a charitable gift:

(A) Funds for which expenditures are restricted by the settlor for a purpose other than the general purposes of a charity or institution; and

(B) The principal or corpus of a charitable trust or institutional fund for which such principal or corpus is restricted to investment or endowment purposes.

(2) No creditor or receiver appointed pursuant to chapter 920 of the general statutes, or trustee appointed under Title 11 of the United States Code, may attach, garnish, lien or otherwise use endowment funds or institutional funds described in subdivision (1) of this subsection to apply such funds to the payment of a charitable beneficiary's debt, or its receivership or bankruptcy estate.

Sec. 39. (NEW) (Effective July 1, 2011) (a) A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest. A provision in the terms of the trust permitting the voluntary transfer of a beneficiary's interest, but only with the consent of another person or entity, including the trustee, specified in the terms of the trust, shall be deemed to be an acceptable restraint on voluntary transfer.

(b) A term of a trust providing that the interest of a beneficiary is held subject to a "spendthrift trust", or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the beneficiary's interest.

(c) A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in sections 38 to 45, inclusive, of this act, a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before its receipt by the beneficiary.

(d) A spendthrift provision is valid even though a beneficiary is named as the sole trustee or as a cotrustee of the trust.

(e) A spendthrift provision is enforceable against a former spouse of the beneficiary.

Sec. 40. (NEW) (Effective July 1, 2011) (a) For the purposes of this section, "child" includes any person for whom an order or judgment for child support has been entered in this or another state.

(b) Even if a trust contains a spendthrift provision, a beneficiary's child who has a judgment or court order against the beneficiary for support or maintenance may obtain from a court an order attaching present or future distributions to or for the benefit of the beneficiary, but only if distributions can be made for the beneficiary's support under the terms of the trust.

Sec. 41. (NEW) (Effective July 1, 2011) (a) For the purposes of this section, "child" includes any person for whom an order or judgment for child support has been entered in this or another state.

(b) Except as otherwise provided in subdivision (2) of subsection (a) of section 42 of this act or subsection (c) of this section, whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject to the trustee's discretion, even if: (1) The discretion is expressed in the form of a standard of distribution; or (2) the trustee has abused the discretion.

(c) To the extent a trustee has not complied with a standard of distribution or has abused a discretion: (1) A distribution may be ordered by the court to satisfy a judgment or court order against the beneficiary for support or maintenance of the beneficiary's child; and (2) the court may direct the trustee to pay to the child only such amount as is equitable under the circumstances, but in no event more than the amount the trustee would have been required to distribute to or for the benefit of the beneficiary had the trustee complied with the standard or not abused the discretion.

(d) This section does not limit the preexisting right of a beneficiary, if any, to maintain a judicial proceeding against a trustee for an abuse of discretion or failure to comply with a standard for distribution.

(e) With respect to the powers set forth in section 45 of this act, the provisions of this section shall apply even though the beneficiary is the sole trustee or a cotrustee of the trust.

Sec. 42. (NEW) (Effective July 1, 2011) (a) Whether or not the terms of a trust contain a spendthrift provision, the following rules apply:

(1) During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors.

(2) Except as provided in subdivisions (4) and (5) of this subsection, with respect to an irrevocable trust, a creditor or assignee of the settlor may reach the maximum amount that can be distributed to or for the benefit of the settlor. If a trust has more than one settlor, the amount the creditor or assignee of a particular settlor may reach may not exceed the settlor's interest in the portion of the trust attributable to such settlor's contribution.

(3) With respect to a trust created pursuant to 42 USC 1396p(d)(4)(A) or (C), as from time to time amended, the court may limit the award to a creditor of the settlor under subdivision (1) or (2) of this subsection to such relief as is appropriate under the circumstances, considering, among any other factors determined to be appropriate by the court, the supplemental needs of the beneficiary.

(4) A creditor or assignee of the settlor may not reach the assets of an irrevocable trust, in whole or in part, solely because of the existence of a discretionary power granted to the trustee by the terms of the trust, or any other provision of law, to pay directly to the taxing authorities or to reimburse the settlor for any tax on trust income or principal which is payable by the settlor under the law imposing such tax.

(5) A creditor or assignee of a settlor may not reach the assets of an irrevocable trust except in accordance with the terms of the trust instrument if (A) all of the settlors of the trust are commercial entities organized to conduct business activities; (B) at least one trustee is a commercial entity organized to conduct business activities; and (C) the trust is created by contract in order to facilitate a business purpose of the settlors.

(6) After the death of a settlor, and subject to the settlor's right to direct the source from which liabilities will be paid, except as otherwise provided in section 45a-472 of the general statutes, the property of a trust that was revocable at the settlor's death is subject to claims of the settlor's creditors, costs of administration of the settlor's estate, the expenses of the settlor's funeral and disposal of remains, to the extent the settlor's probate estate is inadequate to satisfy such claims, costs, expenses and allowance.

(b) With respect to claims, expenses and taxes in connection with the settlement of a trust that was revocable at the settlor's death, the following rules apply:

(1) Any claim of a creditor that would be barred against the fiduciary of a decedent's estate, the estate of the decedent or any creditor or beneficiary of the decedent's estate, shall be barred against the trustee, the trust property and the creditors and beneficiaries of the trust.

(2) The trustee may use the optional notice procedures set forth in section 45a-357 of the general statutes and, upon the trustee's compliance with such procedures, any person notified in accordance with said section shall be forever barred from asserting or recovering on any claim such person may have from the trustee, the trust property or any creditor or beneficiary of the trust.

(3) The provisions of section 45a-365 of the general statutes concerning the order of payment of claims, expenses and taxes shall apply to the settlement of the revocable trust.

(4) In the event that an application for administration or probate has been filed for the estate of the settlor of a trust, if the trustee of such trust, within thirty days from the appointment of the first fiduciary of the settlor's estate, has filed a notice with the probate court having jurisdiction of the settlor's estate setting forth the name and address of the trustee, no trustee of such trust shall be chargeable for any assets that a trustee may have paid or distributed in good faith in satisfaction of any lawful claims, expenses or taxes or to any beneficiary before such claim was presented if such claim was not presented in writing to the fiduciary of the settlor's estate or the trustee within one hundred fifty days from the date of the appointment of the first fiduciary of the settlor's estate. If no fiduciary of the settlor's estate has been appointed or if no such notice is filed by the trustee within thirty days from the appointment of the first fiduciary of the settlor's estate, no trustee of such trust shall be chargeable for any assets that a trustee may have paid or distributed in good faith in satisfaction of any lawful claims, expenses or taxes or to any beneficiary before such claim was presented if such claim was not presented in writing to the trustee within one hundred fifty days from the date of the publication of a newspaper notice in accordance with subdivision (5) of this subsection. A payment or distribution of assets by a trustee shall be deemed to have been made in good faith unless the creditor can prove that the trustee had actual knowledge of such claim at the time of such payment or distribution. Such one-hundred-fifty-day period shall not be interrupted or affected by the death, resignation or removal of a trustee, except that the time during which there is no fiduciary in office shall not be counted as part of such period. Under no circumstances shall the trustee be compelled by the court or a creditor to provide a copy of any trust agreement to any party or to the court based upon the filing of such a notice.

(5) A trustee may cause newspaper notice to be published at least once notifying all persons having claims to present their claims to the trustee. Such newspaper notice shall state: (A) The name of the trustee and the address at which claims should be presented; (B) that persons with claims should promptly present those claims to the trustee; and (C) that failure to promptly present any such claim may result in the loss of right to recover on such claim.

(c) For the purposes of this section:

(1) Except as otherwise provided in section 45 of this act, during the period the power may be exercised, the holder of a power of withdrawal is treated in the same manner as the settlor of a revocable trust to the extent of the property subject to the power; and

(2) Upon the lapse, release or waiver of the power, the holder is treated as the settlor of the trust only to the extent the value of the property affected by the lapse, release or waiver exceeds the greater of the amount specified in Section 2041(b)(2) or 2514(e) of the Internal Revenue Code of 1986, and the regulations thereunder, or Section 2503(b) of the Internal Revenue Code of 1986, and the regulations thereunder, in each case as in effect on the effective date of this section.

Sec. 43. (NEW) (Effective July 1, 2011) Except as otherwise provided in section 45 of this act, whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the mandated distribution date.

Sec. 44. (NEW) (Effective July 1, 2011) Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.

Sec. 45. (NEW) (Effective July 1, 2011) (a) For all purposes under sections 38 to 45, inclusive, of this act, whether or not a trust contains a spendthrift provision, a creditor of a beneficiary, other than the settlor if the settlor is a beneficiary of the trust, may not attach or compel a distribution of property that is subject:

(1) To a power of withdrawal held by the beneficiary if the value of the property subject to the power does not exceed the greater of the amount specified in Section 2041(b)(2) or 2514(e) of the Internal Revenue Code of 1986, and the regulations thereunder, or Section 2503(b) of the Internal Revenue Code of 1986, and the regulations thereunder, in each case as in effect on the effective date of this section;

(2) Except as otherwise provided in subsection (c) of section 41 of this act, to a power, whether mandatory or discretionary, held by the trustee of the trust, including a power held by the beneficiary as the sole trustee or a cotrustee of the trust, to make distributions to or for the benefit of the beneficiary, if the power is exercisable by the trustee only in accordance with an ascertainable standard relating to such beneficiary's individual health, education, support or maintenance within the meaning of Section 2041(b)(1)(A) or Section 2514(c)(1) of the Internal Revenue Code of 1986, and the regulations thereunder, as in effect on the effective date of this section; or

(3) To a power, whether mandatory or discretionary, held by the trustee of the trust, including a power held by the beneficiary as the sole trustee or a cotrustee of the trust, to make distributions to or for the benefit of a person who the beneficiary has an obligation to support, if the power is exercisable by the trustee only in accordance with an ascertainable standard relating to such person's individual health, education, support or maintenance within the meaning of Section 2041(b)(1)(A) or Section 2514(c)(1) of the Internal Revenue Code of 1986, and the regulations thereunder, as in effect on the effective date of this section.

(b) A beneficiary holding a power set forth in subsection (a) of this section shall not, during the period the power may be exercised or upon the lapse, release or waiver of the power, be treated as a settlor of the trust.

(c) Sections 38 to 45, inclusive, of this act shall not apply to statutory trusts created pursuant to chapter 615 of the general statutes to the extent inconsistent with the terms of chapter 615 of the general statutes.

Sec. 46. (NEW) (Effective July 1, 2011) The capacity required to create, amend, revoke or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will.

Sec. 47. (NEW) (Effective July 1, 2011) (a) Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust. This subsection does not apply (1) to a trust created under an instrument executed before the effective date of this section, (2) charitable pledges, or (3) other charitable gifts in which the charitable interest has otherwise vested.

(b) If a revocable trust is created or funded by more than one settlor: (1) To the extent the trust consists of community property, the trust may be revoked by either spouse acting alone, but may be amended only by joint action of both spouses; and (2) to the extent the trust consists of property other than community property, each settlor may revoke or amend the trust with regard to the portion of the trust property attributable to such settlor's contribution.

(c) (1) The settlor may revoke or amend a revocable trust by substantial compliance with a method provided in the terms of the trust.

(2) If the terms of the trust do not provide a method, or the method provided in the terms is not expressly made exclusive, the settlor may revoke or amend a revocable trust by (A) executing a later will or codicil that has been admitted to probate and that expressly refers to the trust or expressly devises specifically identified items of real or personal property that would otherwise have passed according to the terms of the trust, or (B) any other method manifesting clear and convincing evidence of the settlor's intent, provided (i) a written revocable trust may only be amended by a later written instrument, and (ii) a written revocable trust may only be revoked by a later written instrument or by the burning, cancellation, tearing or obliteration of the revocable trust by the settlor or by some person in the settlor's presence and at the settlor's direction.

(d) Upon revocation of a revocable trust, the trustee shall deliver the trust property as the settlor directs.

(e) A settlor's powers with respect to revocation, amendment or distribution of trust property may be exercised by an agent under a power of attorney only to the extent expressly authorized by the terms of the trust and the power of attorney.

(f) Unless expressly prohibited by the terms of the trust, a conservator of the settlor may exercise a settlor's powers with respect to revocation, amendment or distribution of trust property with the approval of the trustee and the court supervising the conservatorship.

(g) A trustee who does not know that a trust has been revoked or amended is not liable to the settlor or settlor's successors in interest for distributions made and other actions taken on the assumption that the trust had not been amended or revoked.

(h) A trust created pursuant to 42 USC 1396p(d)(4), as from time to time amended, is irrevocable if the terms of the trust prohibit the settlor from revoking it, even if the settlor's estate or the settlor's heirs at law are named as the remainder beneficiary of the trust upon the settlor's death.

Sec. 48. (NEW) (Effective July 1, 2011) (a) While a trust is revocable and the settlor has capacity to revoke the trust, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor.

(b) If a revocable trust has more than one settlor, the duties of the trustee are owed to all of the settlors having capacity to revoke the trust.

(c) During the period the power may be exercised, the holder of a power of withdrawal has the rights of a settlor of a revocable trust under this section to the extent of the property subject to the power.

Sec. 49. (NEW) (Effective July 1, 2011) (a) A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death within the earlier of:

(1) Two years after the settlor's death; or

(2) One hundred fifty days after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust's existence, of the trustee's name and address, and of the time allowed for commencing a proceeding. The trustee shall have the right to provide the documentation and information set forth in this subdivision to (A) all persons who would be entitled to notice of the application for probate of a will or administration of an intestate estate or to notice of the admission of a will to probate or the granting of letters of administration, and (B) the beneficiaries of the trust, and all persons whose interests are, in the opinion of the trustee, adversely affected by the trust.

(b) Upon the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. The trustee is not subject to liability for doing so unless: (1) The trustee knows of a pending judicial proceeding contesting the validity of the trust; (2) a potential contestant has notified the trustee of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within sixty days after the contestant sent the notification; or (3) the trustee failed to give notice in accordance with section 67 of this act.

(c) A beneficiary of a trust that is determined to have been invalid is liable to return any distribution received.

Sec. 50. (NEW) (Effective July 1, 2011) (a) Except as otherwise provided in subsection (c) of this section, a person designated as trustee accepts the trusteeship: (1) By substantially complying with a method of acceptance provided in the terms of the trust; (2) if the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as trustee, or otherwise indicating acceptance of the trusteeship; or (3) in the case of a testamentary trust, filing an acceptance of trust in the court with jurisdiction over the trust.

(b) A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have rejected the trusteeship.

(c) A person designated as trustee, without accepting the trusteeship, may: (1) Act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to a qualified beneficiary; and (2) inspect or investigate trust property to determine potential liability under state or federal environmental or other law or for any other purpose.

(d) A testamentary trustee that is a foreign corporation shall also comply with section 45a-206 of the general statutes.

Sec. 51. (NEW) (Effective July 1, 2011) (a) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond is needed to protect the interests of the beneficiaries or is required by the terms of the trust and, in the case of noncharitable trusts, the court has not dispensed with the requirement.

(b) The court may specify the amount of a bond, its liabilities, and whether sureties are necessary. Except in the case of a charitable trust, the court may modify or terminate a bond at any time.

Sec. 52. (NEW) (Effective July 1, 2011) (a) Cotrustees who are unable to reach a unanimous decision may act by majority decision.

(b) If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust.

(c) A cotrustee shall participate in the performance of a trustee's function unless the cotrustee is unavailable to perform the function because of absence, illness, disqualification under other law or other temporary incapacity or the cotrustee has properly delegated the performance of the function to another trustee.

(d) If a cotrustee is unavailable to perform duties because of absence, illness, disqualification under other law or other temporary incapacity, and prompt action is necessary to achieve the purposes of the trust or to avoid injury to the trust property, the remaining cotrustee or a majority of the remaining cotrustees may act for the trust.

(e) A trustee may delegate to a cotrustee the performance of any function other than a function that the terms of the trust expressly require to be performed by the trustees jointly. Unless a delegation was irrevocable, a delegating trustee may revoke a delegation previously made.

(f) Except as otherwise provided in subsection (g) of this section, a trustee who does not join in an action of another trustee is not liable for the action.

(g) Each trustee shall exercise reasonable care to: (1) Prevent a cotrustee from committing a serious breach of trust; and (2) compel a cotrustee to redress a serious breach of trust.

(h) A dissenting trustee who joins in an action at the direction of the majority of the trustees and who notified any cotrustee of the dissent at or before the time of the action is not liable for the action unless the action is a serious breach of trust.

Sec. 53. (NEW) (Effective July 1, 2011) (a) A vacancy in a trusteeship occurs if: (1) A person designated as trustee rejects the trusteeship; (2) a person designated as trustee cannot be identified or does not exist; (3) a trustee resigns; (4) a trustee is disqualified or removed; (5) a trustee dies; or (6) a conservator is appointed for an individual serving as trustee.

(b) If one or more cotrustees remain in office, a vacancy in a trusteeship of a noncharitable trust need not be filled, unless otherwise required by the terms of the trust. A vacancy in a trusteeship shall be filled if the trust has no remaining trustee. A vacancy in a trusteeship of a charitable trust shall be filled, unless otherwise excused by the terms of the trust.

(c) A vacancy in a trusteeship required to be filled shall be filled in the following order of priority: (1) By a person designated in the terms of the trust to act as successor trustee or appointed according to a procedure specified in such terms; (2) in the case of a noncharitable trust, by a person appointed by unanimous agreement of the qualified beneficiaries; or (3) by a person appointed by the court.

(d) Whether or not a vacancy in a trusteeship exists or is required to be filled, the court may appoint an additional trustee or special fiduciary whenever the court considers the appointment necessary for the administration of the trust.

Sec. 54. (NEW) (Effective July 1, 2011) (a) A trustee of an inter vivos trust may resign without court approval upon at least thirty days notice to either: (1) The qualified beneficiaries, the settlor, if living, and all cotrustees; or (2) the court.

(b) A trustee of a testamentary trust may resign: (1) Without court approval upon at least thirty days notice to the qualified beneficiaries and the court; or (2) with the approval of the court.

(c) In approving a resignation pursuant to subdivision (2) of subsection (b) of this section, the court may issue orders and impose conditions reasonably necessary for the protection of the trust property, the beneficiaries and the other trustees, and may issue such other orders as law and equity may require.

(d) Any liability of a resigning trustee or of any sureties on such trustee's bond for acts or omissions of such trustee is not discharged or affected by such trustee's resignation.

Sec. 55. (NEW) (Effective July 1, 2011) (a) The settlor of a noncharitable trust, the settlor of a charitable trust who has expressed the right to do so, the Attorney General in the case of a charitable trust, a cotrustee or a beneficiary may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative.

(b) The court may remove a trustee if:

(1) The trustee has committed a serious breach of trust;

(2) Lack of cooperation among cotrustees substantially impairs the administration of the trust;

(3) Because of unfitness, unwillingness, or persistent failure of the trustee to administer the trust effectively, the court determines that removal of the trustee best serves the interests of the beneficiaries; or

(4) There has been a substantial change of circumstances or removal is requested by all of the qualified beneficiaries, the court finds that removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust, and a suitable cotrustee or successor trustee is available. A successor corporate fiduciary shall not be removed in such a manner as to discriminate against state banks or national banking associations. No consolidated state bank or national banking association and no receiving state bank or national banking association may be removed solely because it is a successor fiduciary, as defined in section 45a-245a of the general statutes.

Sec. 56. (NEW) (Effective July 1, 2011) (a) Unless a cotrustee remains in office or the court otherwise orders, and until the trust property is delivered to a successor trustee or other person entitled to it, a trustee who has resigned or been removed has the duties of a trustee and the powers necessary to protect the trust property.

(b) A trustee who has resigned or been removed shall proceed expeditiously to deliver the trust property within the trustee's possession to the cotrustee, successor trustee or other person entitled to it.

Sec. 57. (NEW) (Effective July 1, 2011) (a) If the terms of a trust do not specify the trustee's compensation, a trustee is entitled to compensation that is reasonable under the circumstances.

(b) If the terms of a trust specify the trustee's compensation, the trustee is entitled to be compensated as specified, but the court may allow more or less compensation if: (1) The duties of the trustee are substantially different from those contemplated when the trust was created; or (2) the compensation specified by the terms of the trust would be unreasonably low or high.

Sec. 58. (NEW) (Effective July 1, 2011) (a) A trustee is entitled to be reimbursed out of the trust property, with interest as appropriate, for: (1) Expenses that were properly incurred in the defense or administration of the trust, unless the trustee is determined to have committed a breach of trust; and (2) to the extent necessary to prevent unjust enrichment of the trust, expenses that were not properly incurred in the administration of the trust.

(b) An advance by the trustee of money for the protection of the trust gives rise to a lien against trust property to secure reimbursement with reasonable interest.

Sec. 59. (NEW) (Effective July 1, 2011) Upon acceptance of a trusteeship, the trustee shall administer the trust in good faith, in accordance with its terms and purposes, the intentions of the settlor and the interests of the beneficiaries, and in accordance with sections 1 to 86, inclusive, of this act.

Sec. 60. (NEW) (Effective July 1, 2011) (a) A trustee shall invest and manage the trust assets solely in the interests of the beneficiaries.

(b) Subject to the rights of persons dealing with or assisting the trustee as provided in section 82 of this act, a sale, encumbrance or other transaction involving the investment or management of trust property entered into by the trustee for the trustee's own personal account or which is otherwise affected by a conflict between the trustee's fiduciary and personal interests is voidable by a beneficiary affected by the transaction unless: (1) The transaction was authorized by the terms of the trust; (2) the transaction was approved by the court; (3) the beneficiary did not commence a judicial proceeding within the time allowed by section 75 of this act; (4) the beneficiary consented to the trustee's conduct, ratified the transaction or released the trustee as provided in section 79 of this act; or (5) the transaction involves a contract entered into or claim acquired by the trustee before the person became or contemplated becoming trustee.

(c) A sale, encumbrance or other transaction involving the investment or management of trust property is presumed to be affected by a conflict between personal and fiduciary interests if it is entered into by the trustee with: (1) The trustee's spouse; (2) the trustee's descendants, sibling, parents or their spouses; (3) an agent or attorney of the trustee; or (4) a corporation or other person or enterprise in which the trustee, or a person that owns a significant interest in the trustee, has an interest that might affect the trustee's best judgment.

(d) A transaction between a trustee and a beneficiary that does not concern trust property but that occurs during the existence of the trust or while the trustee retains significant influence over the beneficiary and from which the trustee obtains an advantage is voidable by the beneficiary unless the trustee establishes that the transaction was fair to the beneficiary.

(e) A transaction not concerning trust property in which the trustee engages in the trustee's individual capacity involves a conflict between personal and fiduciary interests if the transaction concerns an opportunity properly belonging to the trust.

(f) The following transactions are not presumed to be affected by a conflict of interest between a trustee's personal and fiduciary interests, provided the transaction and any investment made pursuant to the transaction complies with the Connecticut Uniform Prudent Investor Act, sections 45a-541 to 45a-541l, inclusive, of the general statutes, is in the best interests of the beneficiaries, and is not prohibited by the governing instrument: (1) An investment by a trustee in securities of an investment company or investment trust to which the trustee, or its affiliate, provides services in a capacity other than as trustee; (2) an investment by a trustee in an insurance contract purchased from an insurance agency owned by, or affiliated with, the trustee or its affiliate; or (3) the placing of securities transactions by a trustee through a securities broker that is a part of the same company as the trustee, is owned by the trustee or is affiliated with the trustee.

(g) In voting shares of stock or in exercising powers of control over similar interests in other forms of enterprise, the trustee shall act in the best interests of the beneficiaries. If the trust is the sole owner of a corporation or other form of enterprise, the trustee shall elect or appoint directors or other managers who will manage the corporation or enterprise in the best interests of the beneficiaries.

(h) This section does not preclude the following transactions, if fair to the beneficiaries: (1) An agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee; (2) payment of reasonable compensation to the trustee; (3) a transaction between a trust and another trust, decedent's estate or conservatorship of which the trustee is a fiduciary or in which a beneficiary has an interest; (4) a deposit of trust money in a regulated financial service institution operated by the trustee; or (5) an advance by the trustee of money for the protection of the trust.

(i) The court may appoint a special fiduciary to make a decision with respect to any proposed transaction that might violate this section if entered into by the trustee.

Sec. 61. (NEW) (Effective July 1, 2011) A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill and caution.

Sec. 62. (NEW) (Effective July 1, 2011) (a) While a trust is revocable, the trustee may follow a direction of the settlor that is contrary to the terms of the trust.

(b) If the terms of a trust confer upon a person other than the settlor of a revocable trust power to direct certain actions of the trustee, the trustee shall act in accordance with an exercise of such power unless the attempted exercise is manifestly contrary to the terms of the trust or the trustee knows the attempted exercise would constitute a serious breach of a fiduciary duty that the person holding such power owes to the beneficiaries of the trust.

(c) The terms of a trust may confer upon a trustee or other person a power to direct the modification or termination of the trust.

(d) A person, other than a beneficiary, who holds a power to direct as specified in subsection (b) or (c) of this section is presumptively a fiduciary and is required to act in good faith with regard to the purposes of the trust and the interests of the beneficiaries. The holder of a power to direct is liable for any loss that results from breach of a fiduciary duty.

Sec. 63. (NEW) (Effective July 1, 2011) A trustee shall take reasonable steps to take control of and protect the trust property.

Sec. 64. (NEW) (Effective July 1, 2011) (a) A trustee shall keep adequate records of the administration of the trust.

(b) A trustee shall keep trust property separate from the trustee's own property.

(c) Except as otherwise provided in subsection (d) of this section, a trustee shall cause the trust property to be designated so that the interest of the trust, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary.

(d) If the trustee maintains records clearly indicating the respective interests, a trustee may invest as a whole the property of two or more separate trusts.

Sec. 65. (NEW) (Effective July 1, 2011) A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.

Sec. 66. (NEW) (Effective July 1, 2011) A trustee shall take reasonable steps to compel a former trustee or other person to deliver trust property to the trustee, and to redress a breach of trust known to the trustee to have been committed by a former trustee.

Sec. 67. (NEW) (Effective July 1, 2011) (a) Unless, under the circumstances, disclosure is unreasonable: (1) A trustee shall keep the current beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests; and (2) a trustee shall promptly respond to a qualified beneficiary's request for trustee's reports and other information reasonably related to the administration of the trust.

(b) A trustee: (1) Upon request of a qualified beneficiary, shall promptly furnish to the qualified beneficiary a copy of the trust instrument; (2) within sixty days after accepting a trusteeship, shall notify the current beneficiaries of the acceptance and of the trustee's name, address and telephone number; and (3) within sixty days after the date the trustee acquires knowledge of the creation of an irrevocable trust, or the date the trustee acquires knowledge that a formerly revocable trust has become irrevocable, whether by the death of the settlor or otherwise, shall notify the current beneficiaries of the trust's existence, of the identity of the settlor or settlors, of the right to request a copy of the trust instrument and of the right to trustee's reports.

(c) A trustee shall send to the current beneficiaries of the trust, and to other qualified beneficiaries who request it, at least annually and at the termination of the trust, a report of the trust property, liabilities, receipts and disbursements, including the source and amount of the trustee's compensation, a listing of the trust assets and, if feasible, their respective market values. Upon a vacancy in a trusteeship, unless a cotrustee remains in office, a report shall be sent to the current beneficiaries by the former trustee. An executor, administrator or conservator may send the current beneficiaries a report on behalf of a deceased or incapacitated trustee.

(d) A current or qualified beneficiary may waive the right to trustee's reports or other information otherwise required to be furnished under this section. A beneficiary, with respect to future reports and other information, may withdraw a waiver previously given.

(e) Judicial approval of a trustee's report forecloses claims as to those given notice of the proceeding as to matters disclosed in the report.

Sec. 68. (NEW) (Effective July 1, 2011) (a) Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as "absolute", "sole" or "uncontrolled", the trustee shall exercise a discretionary power in good faith and in accordance with the terms and purposes of the trust, the intentions of the settlor and the interests of the beneficiaries.

(b) Subject to subsection (d) of this section, and unless the terms of the trust expressly indicate that a rule in this subsection does not apply: (1) A person, other than a settlor, who is a beneficiary and trustee of a trust that confers on the trustee a power to make discretionary distributions to or for the trustee's personal benefit may exercise the power only in accordance with an ascertainable standard relating to the trustee's individual health, education, support or maintenance within the meaning of Section 2041(b)(1)(A) or 2514(c)(1) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended; and (2) a trustee may not exercise a power to make discretionary distributions to satisfy a legal obligation of support that the trustee personally owes another person.

(c) A power to make discretionary distributions, the exercise of which is limited or prohibited by subsection (b) of this section, may be exercised by a majority of the remaining trustees whose exercise of such power is not so limited or prohibited. If the exercise of such power by all trustees is so limited or prohibited, the court may appoint a special fiduciary with authority to exercise such power.

(d) Subsection (b) of this section does not apply to: (1) A power held by the settlor's spouse who is the trustee of a trust for which a marital deduction, as defined in Section 2056(b)(5) or 2523(e) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, was previously allowed; (2) any trust during any period that the trust may be revoked or amended by its settlor; or (3) a trust, if contributions to the trust qualify for the annual exclusion under Section 2503(c) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended.

Sec. 69. (NEW) (Effective July 1, 2011) (a) A trustee, without authorization by the court, may exercise: (1) Powers conferred by the terms of the trust; and (2) except as limited by the terms of the trust, (A) all powers over the trust property which an unmarried competent owner has over individually-owned property, (B) any other powers appropriate to achieve the proper investment, management and distribution of the trust property, and (C) any other powers conferred by sections 1 to 86, inclusive, of this act.

(b) The exercise of any power is subject to the fiduciary duties prescribed by sections 59 to 71, inclusive, of this act.

Sec. 70. (NEW) (Effective July 1, 2011) (a) Without limiting the authority conferred by section 69 of this act, a trustee may:

(1) Collect trust property and accept or reject additions to the trust property from a settlor or any other person;

(2) Acquire or sell property, for cash or on credit, at public or private sale;

(3) Exchange, partition or otherwise change the character of trust property;

(4) Deposit trust money in an account in a regulated financial service institution;

(5) Borrow money, with or without security, and mortgage or pledge trust property for a period within or extending beyond the duration of the trust;

(6) With respect to an interest in a proprietorship, partnership, limited liability company, business trust, corporation or other form of business or enterprise, continue the business or other enterprise and take any action that may be taken by shareholders, members or property owners, including merging, dissolving or otherwise changing the form of business organization or contributing additional capital;

(7) With respect to stocks or other securities, exercise the rights of an absolute owner, including the right to (A) vote or give proxies to vote, with or without power of substitution, or enter into or continue a voting trust agreement, (B) hold a security in the name of a nominee or in other form without disclosure of the trust so that title may pass by delivery, (C) pay calls, assessments and other sums chargeable or accruing against the securities, and sell or exercise stock subscription or conversion rights, and (D) deposit the securities with a depositary or other regulated financial service institution;

(8) With respect to an interest in real property, construct or make ordinary or extraordinary repairs to, alterations to or improvements in buildings or other structures, demolish improvements, raze existing or erect new party walls or buildings, subdivide or develop land, dedicate land to public use or grant public or private easements, and make or vacate plats and adjust boundaries;

(9) Enter into a lease for any purpose as lessor or lessee, including a lease or other arrangement for exploration and removal of natural resources, with or without the option to purchase or renew, for a period within or extending beyond the duration of the trust;

(10) Grant an option involving a sale, lease or other disposition of trust property or acquire an option for the acquisition of property, including an option exercisable beyond the duration of the trust, and exercise an option so acquired;

(11) Insure the property of the trust against damage or loss, and insure the trustee, the trustee's agents and beneficiaries against liability arising from the administration of the trust;

(12) Abandon or decline to administer property of no value or of insufficient value to justify its collection or continued administration;

(13) With respect to possible liability for violation of environmental law, (A) inspect or investigate property the trustee holds or has been asked to hold, or property owned or operated by an organization in which the trustee holds or has been asked to hold an interest, for the purpose of determining the application of environmental law with respect to the property, (B) take action to prevent, abate or otherwise remedy any actual or potential violation of any environmental law affecting property held directly or indirectly by the trustee, whether taken before or after the assertion of a claim or the initiation of governmental enforcement, (C) decline to accept property into trust or disclaim any power with respect to property that is or may be burdened with liability for violation of environmental law, (D) compromise claims against the trust which may be asserted for an alleged violation of environmental law, and (E) pay the expense of any inspection, review, abatement or remedial action to comply with environmental law;

(14) Pay or contest any claim, settle a claim by or against the trust, and release, in whole or in part, a claim belonging to the trust;

(15) Pay taxes, assessments, compensation of the trustee and of employees and agents of the trust, and other expenses incurred in the administration of the trust;

(16) Exercise elections with respect to federal, state and local taxes;

(17) Select a mode of payment under any employee benefit or retirement plan, annuity or life insurance payable to the trustee, exercise rights thereunder, including exercise of the right to indemnification for expenses and against liabilities, and take appropriate action to collect the proceeds;

(18) Make loans out of trust property, including loans to a beneficiary on terms and conditions the trustee considers to be fair and reasonable under the circumstances, with the trustee having a lien on future distributions for repayment of such loans;

(19) Pledge trust property to guarantee loans made by others to the beneficiary;

(20) Appoint a trustee to act in another jurisdiction with respect to trust property located in the other jurisdiction, confer upon such appointed trustee all of the powers and duties of the appointing trustee, require that such appointed trustee furnish security, and remove any trustee so appointed;

(21) Pay an amount distributable to a beneficiary who is under a legal disability or who the trustee reasonably believes is incapacitated, by: (A) Paying it directly to the beneficiary or applying it for the beneficiary's benefit; (B) paying it to the beneficiary's conservator; (C) paying it to the beneficiary's custodian under the Uniform Transfers to Minors Act or to the beneficiary's custodial trustee under the Uniform Custodial Trust Act, and, for such purpose, creating a custodianship or custodial trust; (D) if the trustee does not know of a conservator, custodian or custodial trustee, paying it to an adult relative or other person having legal or physical care or custody of the beneficiary, to be expended on the beneficiary's behalf; or (E) managing it as a separate fund on the beneficiary's behalf, subject to the beneficiary's continuing right to withdraw the distribution;

(22) On distribution of trust property or the division or termination of a trust, make distributions in divided or undivided interests, allocate particular assets in proportionate or disproportionate shares, value the trust property for such purposes and adjust for resulting differences in valuation;

(23) Resolve a dispute concerning the interpretation of the trust or its administration by mediation, arbitration or other procedure for alternative dispute resolution;

(24) Prosecute or defend an action, claim or judicial proceeding in any jurisdiction to protect trust property and the trustee in the performance of the trustee's duties;

(25) Sign and deliver contracts and other instruments that are useful to achieve or facilitate the exercise of the trustee's powers; and

(26) On termination of the trust, exercise the powers appropriate to wind up the administration of the trust and distribute the trust property to the persons entitled to it.

(b) The powers set forth in subsection (a) of this section shall not apply to a charitable trust to the extent that their exercise would give the trustee the authority to deviate from a stated charitable purpose or violate a restricted gift.

Sec. 71. (NEW) (Effective July 1, 2011) (a) Upon termination or partial termination of a trust, the trustee of an inter vivos trust may send to the qualified beneficiaries a proposal for distribution. The right of any beneficiary to whom the trustee has sent the proposal to object to the proposed distribution terminates if the beneficiary does not notify the trustee of an objection not later than thirty days after the proposal was sent, but only if the proposal informed the beneficiary of the right to object and of the time allowed for objection.

(b) Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to it, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses and taxes.

(c) A release by a beneficiary of a trustee from liability for breach of trust is invalid to the extent: (1) It was induced by improper conduct of the trustee; or (2) the beneficiary, at the time of the release, did not know of the beneficiary's rights or of the material facts relating to the breach.

Sec. 72. (NEW) (Effective July 1, 2011) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust.

Sec. 73. (NEW) (Effective July 1, 2011) (a) A trustee who commits a breach of trust is liable to the beneficiaries affected for the greater of: (1) The amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or (2) the profit the trustee made by reason of the breach.

(b) Except as otherwise provided in this subsection, if more than one trustee is liable to the beneficiaries for a breach of trust, a trustee is entitled to contribution from the other trustee or trustees. A trustee is not entitled to contribution if the trustee was substantially more at fault than another trustee or if the trustee committed the breach of trust in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries. A trustee who received a benefit from the breach of trust is not entitled to contribution from another trustee to the extent of the benefit received.

Sec. 74. (NEW) (Effective July 1, 2011) (a) A trustee is accountable to an affected beneficiary for any profit made by the trustee arising from the administration of the trust, even absent a breach of trust.

(b) Absent a breach of trust, a trustee is not liable to a beneficiary for a loss or depreciation in the value of trust property or for not having made a profit.

Sec. 75. (NEW) (Effective July 1, 2011) (a) A beneficiary may not commence a proceeding against a trustee for breach of trust more than one year after the date the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a potential claim for breach of trust and informed the beneficiary of the time allowed for commencing a proceeding.

(b) A report adequately discloses the existence of a potential claim for breach of trust if it provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence.

(c) If subsection (a) of this section does not apply, a judicial proceeding by a beneficiary against a trustee for breach of trust shall be commenced not later than two years after the first to occur of: (1) The removal or resignation of the trustee; (2) the termination of the beneficiary's interest in the trust; or (3) the termination of the trust.

(d) In a proceeding involving a charitable trust, any notice that is required to be given to the Attorney General under this section shall include a copy of the trust instrument.

Sec. 76. (NEW) (Effective July 1, 2011) A trustee who acts in reasonable reliance on the terms of the trust as expressed in the trust instrument is not liable to a beneficiary for a breach of trust to the extent the breach resulted from the reliance.

Sec. 77. (NEW) (Effective July 1, 2011) If the happening of an event, including marriage, divorce, performance of educational requirements or death, affects the administration or distribution of a trust, a trustee who has exercised reasonable care to ascertain the happening of the event is not liable for a loss resulting from the trustee's lack of knowledge.

Sec. 78. (NEW) (Effective July 1, 2011) (a) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it: (1) Relieves the trustee of liability for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries; or (2) was inserted as the result of an abuse by the trustee of a fiduciary or confidential relationship to the settlor.

(b) Except for terms intended to provide protection for carrying out a stated trust purpose, an exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the settlor.

Sec. 79. (NEW) (Effective July 1, 2011) A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach, unless: (1) The consent, release or ratification of the beneficiary was induced by improper conduct of the trustee; or (2) at the time of the consent, release or ratification, the beneficiary did not know of the beneficiary's rights or of the material facts relating to the breach.

Sec. 80. (NEW) (Effective July 1, 2011) (a) Except as otherwise provided in the contract, a trustee is not personally liable on a contract properly entered into in the trustee's fiduciary capacity in the course of administering the trust if the trustee in the contract disclosed the fiduciary capacity.

(b) Except as otherwise limited by any provision of the general statutes, a trustee is personally liable for torts committed in the course of administering a trust, or for obligations arising from ownership or control of trust property, including liability for violation of environmental law, only if the trustee is personally at fault.

(c) A claim based on (1) a contract entered into by a trustee in the trustee's fiduciary capacity, (2) an obligation arising from ownership or control of trust property, or (3) a tort committed in the course of administering a trust, may be asserted in a judicial proceeding against the trustee in the trustee's fiduciary capacity, whether or not the trustee is personally liable for the claim.

Sec. 81. (NEW) (Effective July 1, 2011) (a) Except as otherwise provided in subsection (c) of this section, or unless personal liability is imposed in the contract, a trustee who holds an interest as a general partner in a general or limited partnership is not personally liable on a contract entered into by the partnership after the trust's acquisition of the interest if the fiduciary capacity was disclosed in the contract or in a statement previously filed pursuant to the Uniform Partnership Act, sections 34-300 to 34-399, inclusive, of the general statutes, or the Uniform Limited Partnership Act, sections 34-9 to 34-38u, inclusive, of the general statutes.

(b) Except as otherwise provided in subsection (c) of this section, a trustee who holds an interest as a general partner is not personally liable for torts committed by the partnership or for obligations arising from ownership or control of the interest unless the trustee is personally at fault.

(c) The immunity provided by this section does not apply if an interest in the partnership is held by the trustee in a capacity other than that of trustee or is held by the trustee's spouse or one or more of the trustee's descendants, siblings or parents or the spouse of any of them.

(d) If the trustee of a revocable trust holds an interest as a general partner, the settlor is personally liable for contracts and other obligations of the partnership as if the settlor were a general partner.

Sec. 82. (NEW) (Effective July 1, 2011) (a) A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers, is protected from liability as if the trustee properly exercised the power.

(b) A person other than a beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise.

(c) A person who in good faith delivers assets to a trustee need not ensure their proper application.

(d) A person other than a beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trustee has terminated, is protected from liability as if the former trustee were still a trustee.

(e) Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.

Sec. 83. (NEW) (Effective July 1, 2011) (a) Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, or the Attorney General's office in the case of a charitable trust, the trustee may furnish to the person a certification of trust containing the following information: (1) That the trust exists and the date the trust instrument was executed; (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 trust's taxpayer identification number; and (8) the manner of taking title to trust property.

(b) A certification of trust may be signed or otherwise authenticated by any trustee.

(c) A certification of trust shall state that the trust has not been revoked, modified or amended in any manner that would cause the representations contained in the certification of trust to be incorrect.

(d) A certification of trust need not contain the dispositive terms of a trust.

(e) A recipient of a certification of trust may require the trustee to furnish copies of those excerpts from the original trust instrument and later amendments which designate the trustee and confer upon the trustee the power to act in the pending transaction.

(f) A person who acts in reliance upon a certification of trust without knowledge that the representations contained therein are incorrect is not liable to any person for so acting and may assume without inquiry the existence of the facts contained in the certification.

(g) A person who in good faith enters into a transaction in reliance upon a certification of trust may enforce the transaction against the trust property as if the representations contained in the certification were correct.

(h) A person making a demand for the trust instrument in addition to a certification of trust or excerpts is liable for damages if the court determines that the person did not act in good faith in demanding the trust instrument.

(i) This section does not limit the right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the trust.

Sec. 84. (NEW) (Effective July 1, 2011) In applying and construing the uniform provisions of sections 1 to 86, inclusive, of this act, consideration must be given to the need to promote uniformity of the law with respect to the subject matter among states that enact such uniform provisions.

Sec. 85. (NEW) (Effective July 1, 2011) If any provision of sections 1 to 86, inclusive, of this act or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of sections 1 to 86, inclusive, of this act which can be given effect without the invalid provision or application, and to this end the provisions of sections 1 to 86, inclusive, of this act are severable.

Sec. 86. (NEW) (Effective July 1, 2011) (a) Except as otherwise provided in sections 1 to 86, inclusive, of this act, on the effective date of this section:

(1) Sections 1 to 86, inclusive, of this act apply to all trusts created before, on or after the effective date of this section;

(2) Sections 1 to 86, inclusive, of this act apply to all judicial proceedings concerning trusts commenced on or after the effective date of this section;

(3) Sections 1 to 86, inclusive, of this act apply to judicial proceedings concerning trusts commenced before the effective date of this section, unless the court finds that application of a particular provision of sections 1 to 86, inclusive, of this act would substantially interfere with the effective conduct of the judicial proceedings or prejudice the rights of the parties, in which case the particular provision of sections 1 to 86, inclusive, of this act does not apply and the superseded law applies;

(4) Any rule of construction or presumption provided in sections 1 to 86, inclusive, of this act applies to trust instruments executed before the effective date of this section unless there is a clear indication of a contrary intent in the terms of the trust;

(5) An act done before the effective date of this section is not affected by sections 1 to 86, inclusive, of this act;

(6) The ninety-year period specified in subdivision (1) of section 29 of this act shall only apply to trusts that become irrevocable on or after the effective date of this section;

(7) The provisions of subdivision (4) of subsection (a) of section 42 of this act shall only apply to revocable trusts of settlors dying on or after the effective date of this section; and

(8) The provisions of subdivision (2) of subsection (a) and subsections (b) and (c) of section 67 of this act shall only apply to trusts that become irrevocable on or after the effective date of this section.

(b) If a right is acquired, extinguished or barred upon the expiration of a prescribed period that has commenced to run under any other statute before the effective date of this section, such statute continues to apply to the right even if it has been repealed or superseded.

This act shall take effect as follows and shall amend the following sections:

Section 1

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Sec. 2

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Sec. 3

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Sec. 4

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Sec. 6

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Sec. 7

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Sec. 8

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Sec. 9

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Sec. 10

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Sec. 11

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Sec. 12

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Sec. 13

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Sec. 14

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Sec. 15

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Sec. 17

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Sec. 18

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Sec. 19

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Sec. 20

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Sec. 21

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Sec. 22

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Sec. 26

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Sec. 27

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Sec. 28

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Sec. 29

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Sec. 30

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Sec. 32

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Sec. 33

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Sec. 34

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Sec. 35

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Sec. 36

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Sec. 37

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Sec. 38

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Sec. 39

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Sec. 41

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Sec. 42

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Sec. 43

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Sec. 62

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Sec. 63

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Sec. 64

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Sec. 65

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Sec. 66

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Sec. 67

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Sec. 68

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Sec. 69

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Sec. 70

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Sec. 71

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Sec. 72

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Sec. 73

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Sec. 74

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Sec. 75

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Sec. 76

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Sec. 77

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Sec. 78

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Sec. 79

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Sec. 80

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Sec. 81

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Sec. 82

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Sec. 83

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Sec. 84

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Sec. 85

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Sec. 86

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Statement of Purpose:

To adopt the Connecticut Uniform Trust Code.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]