HB 7104 — AN ACT CONCERNING ADOPTION OF THE CONNECTICUT UNIFORM TRUST CODE.

(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 LCOterminate; {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07104 of 96 R01-HB.docx } Substitute Bill No.

7104 terminate;

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

(25)(24) "Settlor" means a person, including a testator, that 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 portionLCO andNo. as otherwise provided in section 40 of this act.

(26)3815 "Spendthrift4 provision"of means94 aRaised termBill ofNo.7104 aportion trustand thatas restrainsotherwise bothprovided voluntaryin andsection involuntary40 transfer of athis beneficiary'sact. interest.

(27)(25) "State""Spendthrift provision" means a stateterm of thea Unitedtrust States,that therestrains Districtboth ofvoluntary Columbia,and Puertoinvoluntary Rico,transfer 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.beneficiary's interest.

(26) "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.

(27) "Terms of a trust" means:

(A) The manifestation of the settlor's intent regarding a trust's provisions as:

(i) Expressed in the trust instrument;

or (ii) Established by other evidence that would be admissible in a judicial proceeding;

or (B) The trust's provisions, as established, determined or amended by:

(i) A trustee or trust director in accordance with applicable law;

(ii) Court order;

or (iii) A nonjudicial settlement agreement under section 11 of this act.

(30)LCO "TrustNo. instrument" means any instrument executed by the settlor, including a will establishing or creating a testamentary trust, that contains terms of the trust, including any amendments thereto.

In3815 LCO5 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07105of 94 Raised Bill No.7104 (30) "Trust instrument" means any instrument executed by the settlor, including a will establishing or creating a testamentary trust, that contains terms of 96the R01-HB.docxtrust, }including Substituteany Billamendments No.thereto.

7104In the case of a charitable trust, "trust instrument" means any written instrument by which property is dedicated for a charitable purpose described in section 26 of this act.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Subject to subsection (b) of this section, for the purposes of sections 1 to 98, inclusive, of this act, a person has knowledge of a fact if the person (1) has actual knowledge of the fact;

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Except as provided in the terms of the trust, sections 1 to 98, 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 each provision of sections 1 to 98,LCO inclusive,No. of this act except:

3815 6 of 94 Raised Bill No.7104 98, inclusive, of this act except:

(2) the duty of a trustee to act in good faith and in accordance LCOwith {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07106the ofterms 96and R01-HB.docxpurposes }of Substitutethe Billtrust; No.

7104 with the terms and purposes of the trust;

(8) the duty under subsectionssubsection (a) and (c) of section 63 of this act to respond to the request of a qualified beneficiary of an irrevocable trust or the designated representative of the qualified beneficiary, if any, for a trustee's report and other information reasonably related to the administration of a trust;trust and the effect of an exculpatory term under section 73 of this act;

(9) the effectrights ofunder ansections exculpatory75 termto under78, sectioninclusive, 73 of this act;act of a person other than a trustee or beneficiary;

(10) theperiods rights under sections 75 to 78, inclusive, of thislimitation actfor ofcommencing a personjudicial otherproceeding; than a trustee or beneficiary;

(11) periodsthe power of limitationthe forcourt commencingto atake judicialthe proceeding;action and exercise the jurisdiction necessary in the interests of justice;

(12) the powerjurisdiction of the court toas takeprovided thein actionsections 15 and exercise16 the jurisdiction necessary in the interests of justice;this act;

and (13) the jurisdictionprovisions of thesections court1 asto provided83, ininclusive, sectionsof 15this andact 16dealing with judicial supervision of thistestamentary act;trusts.

and (14) the provisions of sections 1 to 83, inclusive, of this act dealing with judicial supervision of testamentary trusts.

(NEW) (Effective JanuaryOctober 1, 2020)2019) The common law of trusts and principles of equity supplement sections 1 to 109, inclusive, of this act, except to the extent modified by sections 1 to 109, inclusive, of this act or another provisionstatute of thethis generalstate. statutes.

No provision in sections 1 to 109, inclusive, of this act or title 45a of the general statutes shall be applied or construed to alter or LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07104- 7 of 96 R01-HB.docx } Substitute Bill No.

71043815 7 of 94 Raised Bill No.7104 provision in sections 1 to 109, inclusive, of this act or title 45a of the general statutes shall be applied or construed to alter or diminish any charitable interest or purpose or any condition or restriction related to a charitable interest or purpose.

(NEW) (Effective JanuaryOctober 1, 2020)2019) The meaning and effect of the terms of a trust are determined by:

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Without precluding other means for establishing a sufficient connection with the designated jurisdiction, terms of a trust designating the principal place of administration of the trust are valid and controlling if:

(d) A change in the principal place of administration of a trust from this state to another jurisdiction does not, by itself, deprive the courts ofLCO thisNo. state of jurisdiction over the trust.

LCO3815 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-071088 of 9694 R01-HB.docxRaised } Substitute Bill No.

7104 (e)of Thethis trusteestate may not transfer the principal place of administration of a charitable trust to a jurisdiction outsideover of the Unitedtrust. States.

(e) The trustee may not transfer the principal place of administration of a charitable trust to a jurisdiction outside of the United States.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Notice to a person under sections 1 to 109, inclusive, of this act or the sending of a document to a person under sections 1 to 109, 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.

LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07104-9 of 96 R01-HB.docx } Substitute Bill No.

3815 9 of 94 Raised Bill No.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Whenever notice to qualified beneficiaries of a trust is required under sections 1 to 109, inclusive, of this act, the trustee shall also give notice to:

(1) A representative designated under section 2119 of this act to receive notices on the beneficiary's behalf;

LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710410 of 96 R01-HB.docx } Substitute Bill No.

71043815 10 of 94 Raised Bill No.7104 (d) A person appointed to enforce a trust created for (1) the care of an animal under section 45a-489a of the general statutes, as amended by this act, or (2) another noncharitable purpose as provided in section 29 of this act, has the rights of a qualified beneficiary under sections 1 to 109, inclusive, of this act.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (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.

(e) A nonjudicial settlement agreement may not modify or terminate LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07111 of 96 R01-HB.docx } Substitute Bill No.

71043815 11 of 94 Raised Bill No.7104 an irrevocable trust.

(f) An interested person may request the court to approve a nonjudicial settlement agreement to determine whether the representation as provided pursuantin to sections 17 to 21, inclusive, of this act was adequate and to determine whether the agreement contains terms and conditions the court could have properly approved.

(NEW) (Effective JanuaryOctober 1, 2020)2019) A trustee has an insurable interest in the life of an individual insured under a life insurance policy that is owned by the trustee or that designates the trust itself as the owner if, on the date the policy is issued:

and (2) The life insurance proceeds are primarily for the benefit of one or more trust beneficiaries whothat have:

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A testamentary trust is subject to continuing judicial supervision.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) If a trustee accepts trusteeship of a trust having its principal place of administration in this state or moves the principal place of administration to this state, the LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07112 of 96 R01-HB.docx } Substitute Bill No.

71043815 12 of 94 Raised Bill No.7104 trustee submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Except as provided in subsectionsubsections (b) and (c) of this section, the Probate CourtsCourt havehas sole original exclusive jurisdiction relating to testamentary trusts to:

(4) WithApprove respectthe tosettlement anof actiona thatdisputed couldclaim bepursuant reportedto insection a45a-151 subsequent LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710413 of 96the R01-HB.docxgeneral }statutes; Substitute Bill No.

7104LCO accountNo. pursuant to sections 45a-175 to 45a-179, inclusive, of the general statutes, as amended by this act, hear and decide the petition of (A) a trustee to approve a proposed action, ratify a previously taken action or provide instructions to address a specific situation, or (B) a beneficiary to compel or prohibit action by a trustee;

3815 13 of 94 Raised Bill No.7104 (5) Approve the settlementsale of apersonal disputedproperty claim pursuant to section 45a-15145a- 163 of the general statutes;

(6) Approve the sale or mortgage of personalreal property pursuant to section 45a-45a-164 163 of the general statutes;

(7) ApproveRemove theor saleaccept orthe mortgageresignation of reala propertytrustee pursuant to section 45a-16448 of thethis generalact statutes;or subsection (b) of section 49 of this act;

(8) RemoveAppoint or accept the resignation of a successor trustee pursuantin tothe sectionevent 48 of thisa actvacancy or subsectionanticipated (b)vacancy ofpursuant to section 4947 of this act;

(9) AppointOrder a successor trustee into thefurnish event of a vacancyprobate orbond anticipated vacancy pursuant to section 4745 of this act;

(10) OrderRecover on a trusteeprobate tobond furnishfor abreach probateof bondfiduciary duty pursuant to sectionsections 4545a-144 and 45a-145 of thisthe act;general statutes;

(11) Assume jurisdiction of a trust pursuant to subsection (b) of section 45a-477 of the general statutes, as amended by this act;

and(15) LCOTerminate {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07114a charitable trust pursuant to section 45a-520 of 96the R01-HB.docxgeneral }statutes, Substituteas Billamended No.by this act;

7104and (15)(16) TerminateApprove, acompel charitableor trustprohibit pursuanta totrustee's sectionaction 45a-520or ofprovide theinstruction generalto statutes,a astrustee. amended by this act.

(b) The Superior Court and the Probate CourtsCourt have concurrent original jurisdiction relating to testamentary trusts to:

(1)LCO DetermineNo. title or rights of possession and use in and to any real, tangible or intangible property that constitutes or may constitute property of a trust, including the rights and obligations of a beneficiary of the trust pursuant to subdivision (3) of subsection (a) of section 45a- 98 of the general statutes, as amended by this act;

(2)3815 14 of 94 Raised Bill No.7104 (1) Determine thetitle validityor andrights construeof thepossession meaningand use in and effectto any real, tangible or intangible property that constitutes or may constitute property of a trusttrust, pursuantincluding tothe subdivisionrights (4)and obligations of subsectiona (a)beneficiary of the trust pursuant to section 45a-98 of the general statutes, as amended by this act;

(3)(2) ApplyDetermine the doctrinevalidity ofand cyconstrue presthe ormeaning approximationand pursuanteffect to subdivision (5) of subsectiona (a)trust ofpursuant to section 45a-98 of the general statutes, as amended by this act;

(4)(3) RecoverApply onthe adoctrine probateof bondcy forpres breachor ofapproximation fiduciary duty pursuant to sectionssection 45a-14445a-98 and 45a-145 of the general statutes;statutes, as amended by this act;

(5)(4) Reform a trust to qualify for the marital deduction pursuant to section 45a-485 of the general statutes, as amended by this act;

(6)(5) Reform a trust to qualify for the charitable deduction pursuant to section 45a-519 of the general statutes,statutes; as amended by this act;

(7)(6) Reform a charitable remainder unitrust pursuant to section 45a- 521 of the general statutes, as amended by this act;

(8)(7) Authorize transfer of the principal place of administration of a trust to another jurisdiction pursuant to section 8 of this act;

(9)and (8) Modify or terminate a noncharitable trust pursuant to sections 31, 32, 35, 36 and 37 of this act;act.

and(c) LCOThe {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710415Superior ofCourt 96has R01-HB.docxsole }original Substitutejurisdiction Billrelating No.to testamentary trusts with respect to:

7104 (10) Hear and decide a petition for instruction pursuant to subsection (d) of section 88 of this act.

(c) Notwithstanding subsection (a) of this section, the Superior Court has original jurisdiction relating to testamentary trusts with respect to:

and (2) Any matter over which the Superior Court has statutory or common law jurisdiction or has powers or remedies that are not available to the Probate Courts.Court.

(d)LCO TheNo. Superior Court has original jurisdiction over all matters relating to inter vivos trusts.

The3815 Probate15 Courtsof have94 concurrentRaised originalBill jurisdictionNo.7104 with(d) theThe Superior Court has original jurisdiction over all matters relating to inter vivos truststrusts. to:

The Probate Court has concurrent original jurisdiction with the Superior Court relating to inter vivos trusts to:

(2) Approve a trustee's account pursuant to section 45a-175 of the general statutes,statutes; as amended by this act;

(3) WithRemove respect to an action that could be reported in a subsequenttrustee account pursuant to sectionsubsection 45a-175(b) of thesection general49 statutes,of as amended by this act,act; hear and decide the petition of a trustee to approve a proposed action, ratify a previously taken action or provide instruction to address a specific situation or the petition of a beneficiary to compel or prohibit an action by a trustee;

(4) RemoveAppoint a successor trustee in the event of a vacancy or anticipated vacancy pursuant to section 47 or 102 of this act and subsection (b)(g) of section 49105 of this act;

LCO(5) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07116Recover on a probate bond for breach of 96fiduciary R01-HB.docxduty }pursuant Substituteto Billsections No.45a-144 and 45a-145 of the general statutes;

7104(6) (5)Authorize Appoint a successor trustee into thedisclaim eventan ofinterest a vacancy or anticipated vacancy pursuant to section 4745a-579 or 102 of thisthe actgeneral andstatutes; subsection (g) of section 105 of this act;

(6)(7) RecoverAuthorize ona trustee to combine two or more trusts or divide a probatetrust bondinto fortwo breachor ofmore fiduciaryseparate dutytrusts pursuant to sectionssection 45a-14438 and 45a-145 of thethis generalact; statutes;

(7)(8) AuthorizeTerminate a trusteecharitable totrust disclaim an interest pursuant to section 45a-57945a-520 of the general statutes;statutes, as amended by this act;

(8)(9) AuthorizeDetermine atitle trusteeor rights of possession and use in and to combineany tworeal, tangible or moreintangible trustsproperty that constitutes or dividemay constitute property of a trusttrust, intoincluding twothe orrights moreand separateobligations trustsof any beneficiary of the trust pursuant to section 3845a-98 of the general statutes, as amended by this act;

(9)(10) TerminateDetermine athe charitablevalidity and construe the meaning and effect of a trust pursuant to section 45a-52045a-98 of the general statutes, as amended by thisLCO act;No.

(10)3815 Determine16 title or rights of possession94 andRaised useBill inNo.7104 and to any real, tangible or intangible property that constitutes or may constitute property of a trust, including the rights and obligations of any beneficiary of the trust pursuant to subdivision (3) of subsection (a) of section 45a-98 of the general statutes, as amended by this act;

(11) DetermineApply the validitydoctrine andof construecy thepres meaningor andapproximation effect of a trust pursuant to subdivision (4) of subsection (a) of section 45a-98 of the general statutes, as amended by this act;

(12) ApplyReform thea doctrinetrust ofto cyachieve presthe orsettlor's approximationtax objectives pursuant to subdivision (5) of subsection (a) of section 45a-9837 of the general statutes, as amended by this act;

(13) ReformAuthorize atransfer trustof tothe achieveprincipal theplace settlor'sof taxadministration objectivesof a trust to another jurisdiction pursuant to section 378 of this act;

and (14) AuthorizeModify transferor ofterminate the principal place of administration of a noncharitable trust pursuant to anothersections jurisdiction31, pursuant32, to35, section36 8and 37 of this act;act.

(15) Modify or terminate a noncharitable trust pursuant to sections 31, 32, 35, 36 and 37 of this act;

and LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-071017 of 96 R01-HB.docx } Substitute Bill No.

7104 (16) Hear and decide a petition for instruction pursuant to subsection (d) of section 88 of this act.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Process for a proceeding in the Superior Court concerning a trust shall be returnable as provided in chapter 890 of the general statutes.

(2)LCO WhereNo. a trustee or successor trustee resides or has a place of business;

3815 17 of 94 Raised Bill No.7104 (2) Where a trustee or successor trustee resides or has a place of business;

(5) If the settlor is deceased, where the settlor's will was admitted to LCOprobate {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07118or that granted administration of 96the R01-HB.docxsettlor's }estate, Substituteor Billwhere No.the settlor resided immediately before death;

7104 probate or that granted administration of the settlor's estate, or where the settlor resided immediately before death;

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Notice to a person who may represent and bind another person under this section and sections 18 to 21, inclusive, of this act has the same effect as if notice were given directly to the other person.

(d) AThis settlorsection mayand notsections represent18 andto bind21, ainclusive, beneficiaryof under this sectionact, withshall respectapply to theall terminationjudicial orproceedings modificationand ofall anonjudicial trustsettlements, agreements or actions (1) under sections 311 andto 32109, inclusive, of this act.act;

(e) This section and sections 18 to 21, inclusive, of this act, shall apply to all judicial proceedings and all nonjudicial settlements, agreements or actions (1) under sections 1 to 109, inclusive, of this act;

(B) actions by or againstLCO aNo. trust or by or against the trustee of the trust, in its capacity as trustee;

3815 18 of 94 Raised Bill No.7104 against a trust or by or against the trustee of the trust, in its capacity as trustee;

LCOand {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710419(E) ofany 96other R01-HB.docxmatter }concerning Substitutethe Billadministration No.of a trust.

7104Any reference to a trust in this section and (E)sections any45a-487b otherto matter45a-487f, concerninginclusive, of the administrationgeneral ofstatutes, aincludes trust.both testamentary and inter vivos trusts.

Any(e) referenceAs used in this section, "represent" shall not be construed to permit a trustperson inwho thishas sectionnot andbeen sectionsadmitted 45a-487bas an attorney pursuant to 45a-487f,section inclusive,51-80 of the general statutes includesto bothserve testamentaryas andlegal intercounsel vivosfor trusts.any other person in any matter arising under sections 1 to 109, inclusive, of this act.

(f) As used in 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 109, inclusive, of this act.

(NEW) (Effective JanuaryOctober 1, 2020)2019) To the extent there is no conflict of interest between the holder of a power of appointment and a person represented with respect to the particular question or dispute:

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) 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 of the estate may represent and bind the estate that the conservator controls;

(2) a conservator of the person or guardian of an adult with intellectual disability may, with court approval, represent and bind the conserved person if a conservator of the estate has not been appointed;

and (6) if a guardian of the estate hasLCO notNo. been appointed, a parent of a minor may represent and bind the parent's minor or unborn child.

LCO3815 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0712019 of 9694 R01-HB.docxRaised }Bill SubstituteNo.7104 Billhas No.not been appointed, a parent may represent and bind the parent's minor or unborn child.

7104 (b) 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.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) If the court determines that an interest is not represented pursuant to sections 17 to 21, inclusive, of this act, or that the otherwise available representation may 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.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) TheIf trustspecifically instrumentnominated mayin (1)the designatetrust instrument, one or more persons othermay thanbe thedesignated settlor to represent and bind a beneficiary that is not a charity and to receive a notice, information, an accounting or a report on behalf of the beneficiary;beneficiary.

orThe (2)trust instrument may authorize a person or persons, other than a trustee of the trusttrust, or the settlor, to designate one or more persons to represent and bind a beneficiary that is not a charity and receive any notice, information, accounting or report.

(b) Except as otherwise provided in sections 1 to 98, inclusive, of LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07121 of 96 R01-HB.docx } Substitute Bill No.

71043815 20 of 94 Raised Bill No.7104 (b) Except as otherwise provided in sections 1 to 98, inclusive, of this act, a designatedperson representativedesignated, as provided in subdivision (1) of subsection (c) of this section, may not represent and bind a beneficiary while the person is serving as trustee.

(c) Except as otherwise provided in sections 1 to 98, inclusive, of this act, a designatedperson representativedesignated, as provided in subdivision (1) of this subsection, may not represent and bind another beneficiary if the person designated also is a beneficiary, unless:

(d) A designatedperson representativedesignated, as provided in subdivision (1) of subsection (c) of this section, is not liable to the beneficiary whose interests are represented, or to anyone claiming through that beneficiary, for any actions or omissions to act made in good faith.

(NEW) (Effective JanuaryOctober 1, 2020)2019) A trust may be created by:

or (B) a trust described in 42 USC 1396p(d)(4),1396p (d)(4), as amended from time to time;

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A trust is created only if:

(2)LCO TheNo. settlor indicates an intention to create the trust;

3815 21 of 94 Raised Bill No.7104 (2) The settlor indicates an intention to create the trust;

(B) LCOa {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-071022trust for the care of 96an R01-HB.docxanimal, }as Substituteprovided Billin No.section 45a-489a of the general statutes, as amended by this act;

7104 a trust for the care of an animal, as provided in section 45a-489a of the general statutes, as amended by this act;

(NEW) (Effective JanuaryOctober 1, 2020)2019) An inter vivos trust is validly created if its creation complies with (1) the law of the jurisdiction in which the trust instrument was executed;

Sec.LCO No.

3815 22 of 94 Raised Bill No.7104 Sec.

(NEW) (Effective JanuaryOctober 1, 2020)2019) A trust may be created only to the extent its purposes are lawful and not contrary to public policy.

LCOSec. {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-071023 of 96 R01-HB.docx } Substitute Bill No.

7104 Sec.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (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 are beneficial to the community consistent with the provisions of sections 45a-514 and 47-2 of the general statutes.

(d) If a charitable trust whose purposes are set forth in a trust instrument is converted to a corporation, limited liability company, benefit corporation or other entity, the governing instrument of the new entity shallmust recite the charitable purposes of the original trust instrument.

(NEW) (Effective JanuaryOctober 1, 2020)2019) A trust or a provision of a trust is void to the extent its creation was induced by fraud, duress or undue influence.

(NEW) (Effective JanuaryOctober 1, 2020)2019) Except as required by any provision of the general statutes other than sections 1 to 109, inclusive, of this act, a trust need not be evidenced by a written trust instrument, but the creation and terms of an oral trust, other than a charitable trust, mayLCO beNo. established only by clear and convincing evidence.

3815 23 of 94 Raised Bill No.

7104 may be established only by clear and convincing evidence.

(NEW) (Effective JanuaryOctober 1, 2020)2019) Except as otherwise LCOprovided {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-071024in ofthe 96general R01-HB.docxstatutes, }the Substitutefollowing Billrules No.apply to a trust created pursuant to this section:

7104 provided in the general statutes, the following rules apply to a trust created pursuant to this section:

The ninety-year period specified in this subdivision applies only to trusts that become irrevocable on or after January 1, 2020.

or (B) if the settlor is not living, to the settlor's successors in interest.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) In addition to the methods of termination prescribed by sections 31, 32 and 35 of this act, a noncharitable trust terminates to the extent the trust is revoked or expires pursuant to its terms.

The settlor of a charitable trust or a person designated by the settlor who would not otherwise have standing may maintain a proceeding to modify the trust under section LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710425 of 96 R01-HB.docx } Substitute Bill No.

71043815 24 of 94 Raised Bill No.7104 standing may maintain a proceeding to modify the trust under section 33 or 34 of this act if the trust instrument expressly grants the settlor or the person the right to do so.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) IfA thenoncharitable courtirrevocable findstrust thatmay thebe settlor,modified theor trusteeterminated andupon all beneficiaries consent to the modification or termination of a noncharitable irrevocable trust, the courtsettlor mayand approveall thebeneficiaries, modification or termination even if the modification or termination is inconsistent with a material purpose of the trust.

This subsection does not apply to irrevocable trusts created before, or revocable trusts that become irrevocable before, January 1, 2020.

(d) Upon termination of a trust under subsection (a) or (b) of this section, the trustee shall distribute the trust property as agreed by the beneficiariesbeneficiaries. and approved by the court.

(e) If not all of the beneficiaries consent to a proposed modification or termination of the trust under subsection (a) or (b) of this section, the modification or termination may be approved by the court if the LCOcourt {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710426is ofsatisfied 96that: R01-HB.docx } Substitute Bill No.

7104LCO courtNo. is satisfied that:

3815 25 of 94 Raised Bill No.7104 (1) If all of the beneficiaries had consented, the trust could have been modified or terminated under this section;

(f) NotwithstandingFor thepurposes provisions of this section, thea courtnonjudicial settlement may notpermit terminatemodification or termination of a provision of an irrevocable trust established pursuantunder to 42 USC 1396p(d)(4)(A)1396p (d)(4)(A) or (C),(C) asonly amendedif fromthe timesettlement tocomplies time.with 42 USC 1396p (d)(4)(A) or (C).

The court may approve a proposed modification of the terms of such trust to ensure compliance with the requirements of federal law or to modify any individual's contingent beneficial interest that is available only after repayment to this state or another state for (1) medical assistance provided;

and (2) all claims for which this state would have claims against the estate of the deceased beneficiary that have not previously been paid or reimbursed.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) The court may modify the administrative or dispositive terms of a trust, subject to sections 33 and 34 of this section, or terminate a noncharitable trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust.

LCO(e) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07127The court may, pursuant to this section, permit modification or termination of 96a R01-HB.docxprovision }of Substitutean Billirrevocable No.trust established under 42 USC 1396p (d)(4)(A) or (C) only if the modification or termination complies with the requirements of 42 USC 1396p (d)(4)(A) or (C).

7104 (e) Notwithstanding the provisions of this section, the court may not terminate an irrevocable trust established pursuant to 42 USC 1396p(d)(4)(A) or (C), as amended from time to time.

The court may modify the terms of such a trust to ensure compliance with the requirements of federal law or to modify any individual's contingent beneficial interest that is available only after repayment to this state or another state for (1) medical assistance provided;

and (2) all claims for which this state would have claims against the estate of the deceased beneficiary that have not previously been paid or reimbursed.

(NEW) (Effective JanuaryOctober 1, 2020)2019) Except as otherwise provided in section 34 of this act, if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve or wasteful:

(1) TheLCO trustNo. does not fail, in whole or in part;

3815 26 of 94 Raised Bill No.7104 The trust does not fail, in whole or in part;

(NEW) (Effective JanuaryOctober 1, 2020)2019) 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 33 of this act to apply cy pres to modify or terminate the trust only if, when the provision takes effect:

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) After thirty days' notice to the qualified beneficiariesbeneficiaries, and such other beneficiaries as the trustee deems reasonable, the trustee of a noncharitable inter vivos trust consisting of trust property having a total value less than two hundred thousand dollars may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.

The provisions of this subsection shall not apply to a trust established pursuant to 42 USC 1396p(d)(4)(A) or (C), as LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07128 of 96 R01-HB.docx } Substitute Bill No.

7104 amended from time to time.

NotwithstandingIn thethis provisionssection, ofa thisprovision subsection,providing thefor courtrepayment mayof notmedical terminateassistance ato testamentarythe orstate interfor vivostrusts trust established pursuantunder to 42 USC 1396p(d)(4)(A)1396p (d)(4)(A) or (C),(C) asis amendedpresumed fromto timebe toa time.material purpose of the trust.

The court may only modify a trust established pursuant to 42 USC 1396p(d)(4)(A) or (C), as amended from time to time to ensure compliance with the requirements of federal law or to modify any individual's contingent beneficial interest that is available only after repayment to this state or another state for (1) medical assistance provided;

and (2) all claims for which this state would have claims against the estate of the deceased beneficiary that have not previously been paid or reimbursed.

The provisions of this subsection providing for repayment of medical assistance to the state for trusts established under 42 USC 1396p(d)(4)(A) or (C), as amended from time to time are presumed to be a material purpose of the trust.

(d)LCO TheNo. provisions of this section do not apply to an easement for conservation or preservation.

3815 27 of 94 Raised Bill No.

7104 (d) The provisions of this section do not apply to an easement for conservation or preservation.

(NEW) (Effective JanuaryOctober 1, 2020)2019) The court may reform the terms of a noncharitable trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence what the settlor's intention was and that the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement.

LCOSec. {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07129 of 96 R01-HB.docx } Substitute Bill No.

7104 Sec.

(NEW) (Effective JanuaryOctober 1, 2020)2019) 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.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) After thirty days' notice to the qualified beneficiaries, the trustee of an inter vivos trust 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 a beneficiary or adversely affect achievement of the purposes of the trust.

(NEW) (Effective JanuaryOctober 1, 2020)2019) Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) For all purposes under this section and section 39 of this act, a creditor of a beneficiary, other than a creditor of the settlor if the settlor is a beneficiary of the trust, may not attach or compel a distribution of property that is subject to:

(1) A power of withdrawal held by the beneficiary if the value of the propertyLCO subjectNo. 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, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, and the regulations thereunder, or Section 2503(b) of said Internal Revenue Code and the regulations thereunder, in each case as in effect on January 1, 2020;

(2)3815 A28 power,of whether94 mandatoryRaised orBill discretionary,No.7104 heldproperty bysubject to the trusteepower does not exceed the greater of the trust,amount includingspecified ain powerSection held2041(b)(2) byor 2514(e) of the beneficiaryInternal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, and the LCOregulations {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07130thereunder, or Section 2503(b) of 96said R01-HB.docxInternal }Revenue SubstituteCode Billand No.the regulations thereunder, in each case as in effect on October 1, 2019;

7104(2) 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 2514(c)(1) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, and the regulations thereunder, as in effect on JanuaryOctober 1, 2020;2019;

or (3) 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 2514(c)(1) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, and the regulations thereunder, as in effect on JanuaryOctober 1, 2020.2019.

(c)LCO ThisNo. section and section 39 of this act do not apply to statutory trusts created pursuant to chapter 615 of the general statutes to the extent inconsistent with the terms of said chapter.

3815 29 of 94 Raised Bill No.7104 (c) This section and section 39 of this act do not apply to statutory trusts created pursuant to chapter 615 of the general statutes to the extent inconsistent with the terms of chapter 615.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Unless the terms of a trust expressly provide that the trust is irrevocable, the settlor may revoke or amend the trust.

This subsection shall not apply to (1) a trust created under an instrument executed before JanuaryOctober 1, 2020;2019;

LCO(b) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07131If ofa 96revocable R01-HB.docxtrust }is Substitutecreated Billor No.funded by more than one settlor:

7104 (b) If a revocable trust is created or funded by more than one settlor:

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

3815 30 of 94 Raised Bill No.7104 (d) Upon revocation of a revocable trust, the trustee shall deliver the trust property as the settlor directs.

(f) Unless expressly prohibited by the terms of the trust, a conservator of the settlor may exercise a settlor's powers with respect LCOto {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07132revocation, amendment or distribution of 96trust R01-HB.docxproperty }with Substituteapproval Billof No.the trustee and the court supervising the conservatorship.

7104 to revocation, amendment or distribution of trust property with approval of the trustee and the court supervising the conservatorship.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) To the extent a trust is revocable by a settlor, a trustee may follow a direction of the settlor that is contrary to the terms of the trust.

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

3815 31 of 94 Raised Bill No.7104 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.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (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:

or (2) OneSixty hundred twenty days after the date on which the trustee LCOsent {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07133the person a copy of 96the R01-HB.docxtrust }instrument Substituteand Billa No.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.

7104 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 provisions of this subdivision shall not apply to a person if notice is sent to the designated representative for the person but not to the person.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Except as provided in subsectionLCO (c)No. of this section, a person designated as trustee accepts the trusteeship:

3815 32 of 94 Raised Bill No.7104 subsection (c) of this section, a person designated as trustee accepts the trusteeship:

or (3) in the case of LCOa {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07134testamentary trust, filing an acceptance of 96trust R01-HB.docxin }the Substitutecourt Billwith No.jurisdiction over the trust.

7104 a testamentary trust, filing an acceptance of trust in the court with jurisdiction over the trust.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A trustee shall give bond to secure performance of the trustee's duties only if the court finds that a bond (1) is needed to protect the interests of the beneficiaries;

Sec.LCO No.

3815 33 of 94 Raised Bill No.7104 Sec.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Cotrustees who are unable to reach a unanimous decision may act by majority decision.

LCO(c) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07135Subject to the provisions of 96section R01-HB.docx91 }of Substitutethis Billact, No.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.

7104 (c) Subject to the provisions of section 91 of this act, 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.

(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 actionLCO isNo. a serious breach of trust.

3815 34 of 94 Raised Bill No.7104 action is a serious breach of trust.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A vacancy in a trusteeship occurs if:

(4) a trustee is disqualified or LCOremoved; {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07136 of 96 R01-HB.docx } Substitute Bill No.

7104 removed;

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A trustee of an inter vivos trust may resign (1) without court approval upon giving not less than thirty days' notice toto: the qualified beneficiaries, the settlor, if living, and all cotrustees;

(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 giving not less than thirty days' notice to the qualified LCO No.

3815 35 of 94 Raised Bill No.7104 beneficiaries and the court;

(b)(c) AIn trusteeapproving a resignation pursuant to subdivision (2) of asubsection testamentary(b) trustof this section, the court may resignissue withorders and impose conditions reasonably necessary for the approvalprotection of the court.trust property, the beneficiaries and the other trustees, and may issue such other orders as law and equity may require.

(c)(d) InAny approvingliability of a resignationresigning pursuanttrustee toor subsection (b) of thisany section,sureties theon courtsuch maytrustee's issuebond orders and impose conditions reasonably necessary for theacts protectionor omissions of thesuch trusttrustee property,is thenot beneficiariesdischarged andor theaffected otherby trustees, and may issue such othertrustee's ordersresignation. as law and equity may require.

LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710437 of 96 R01-HB.docx } Substitute Bill No.

7104 (d) Any liability of a trustee, former 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.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) The settlor of a noncharitable trust, the settlor of a charitable trust who has expressly retained the right to do so, the Attorney General in the case of a charitable trust, a cotrustee, a beneficiary or the surety on the trustee's probate bond, may request the court to remove a trustee, or a trustee may be removed by the court on its own initiative.

(b) Subject to subsection (a)(a), of this section, the court may remove a trustee if:

or (4) There has been a substantial change of circumstances or removal is requested by all of the qualified beneficiariesbeneficiaries, and the court finds that (A) removal of the trustee best serves the interests of all of the beneficiaries and is not inconsistent with a material purpose of the trust;

The court may not removeLCO aNo. successor corporate fiduciary in a manner that discriminates against state banks or national banking associations.

3815 36 of 94 Raised Bill No.7104 remove a successor corporate fiduciary in a manner that discriminates against state banks or national banking associations.

LCOSec. {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07138 of 96 R01-HB.docx } Substitute Bill No.

7104 Sec.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (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.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (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.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (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 committedLCO aNo. breach of trust;

3815 37 of 94 Raised Bill No.7104 committed a breach of trust;

LCOSec. {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07139 of 96 R01-HB.docx } Substitute Bill No.

7104 Sec.

(NEW) (Effective JanuaryOctober 1, 2020)2019) Upon acceptance of a trusteeship, the trustee shall administer the trust (1) in good faith;

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A trustee shall administer trust assets solely in the interests of the beneficiaries consistent with the settlor's intent.

(2) the trustee'sLCO descendants,No. sibling, parents or their spouses;

3815 38 of 94 Raised Bill No.7104 trustee's descendants, sibling, parents or their spouses;

(d) If a transaction between a trustee and a beneficiary which does LCOnot {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07140concern trust property but (1) which occurs during the existence of 96the R01-HB.docxtrust }or Substitutewhile Billthe No.trustee retains significant influence over the beneficiary;

7104 not concern trust property but (1) which occurs during the existence of the trust or while the trustee retains significant influence over the beneficiary;

(g) In voting shares of stock or in exercising powers of control over similarLCO interestsNo. in other forms of enterprise, the trustee shall act in the best interests of the beneficiaries consistent with the intentions of the settlor.

3815 39 of 94 Raised Bill No.7104 similar interests in other forms of enterprise, the trustee shall act in the best interests of the beneficiaries consistent with the intentions of the settlor.

LCO(h) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07141The provisions of 96this R01-HB.docxsection }do Substitutenot Billpreclude No.the following transactions, if fair to the beneficiaries:

7104 (h) The provisions of this section do not preclude the following transactions, if fair to the beneficiaries:

(NEW) (Effective JanuaryOctober 1, 2020)2019) If a trust has two or more beneficiaries, the trustee shall act impartially in investing, managing and distributing the trust property, giving due regard to the beneficiaries' respective interests.

(NEW) (Effective JanuaryOctober 1, 2020)2019) A trustee shall administer the trust as a prudent person would, by considering the purposes, terms, distributional requirements and other circumstances of the trust.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A trustee may delegate duties and powers that a prudent trustee of comparable skills could properly delegate to an agent under the circumstances.

(1)LCO SelectingNo. an agent for the delegation;

3815 40 of 94 Raised Bill No.7104 (1) Selecting an agent for the delegation;

LCO(b) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07142In ofperforming 96a R01-HB.docxdelegated }function, Substitutean Billagent No.owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.

7104 (b) In performing a delegated function, an agent owes a duty to the trust to exercise reasonable care to comply with the terms of the delegation.

(NEW) (Effective JanuaryOctober 1, 2020)2019) TheIn settlora ofjudicial anproceeding irrevocableinvolving trustthe shalladministration notof bea deemedtrust, tothe haveSuperior aCourt, beneficialas interestjustice inand suchequity trustmay merelyrequire, becausemay theaward trusteecosts isand authorizedexpenses, underincluding thereasonable trustattorney's instrumentfees, orto any otherparty, provisionto ofbe lawpaid toby (1)another payparty or reimbursefrom the settlor for any tax on trust income or trust principal that is payable by the settlorsubject underof the lawcontroversy. imposing such tax;

or (2) pay any such tax directly to the taxing authorities.

No creditor of the settlor of an irrevocable trust shall be entitled to reach any trust property based on the discretionary powers described in this section.

(NEW) (Effective JanuaryOctober 1, 2020)2019) A trustee shall take reasonable steps to take control of and protect the trust property.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A trustee shall keep adequate records of the administration of the trust.

(c) Except as 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 partyLCO otherNo. than a trustee or beneficiary.

(d)3815 If41 theof trustee94 maintainsRaised recordsBill clearlyNo.7104 indicatingparty theother respectivethan LCOa {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710443trustee ofor 96beneficiary. R01-HB.docx } Substitute Bill No.

7104(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.

(NEW) (Effective JanuaryOctober 1, 2020)2019) A trustee shall take reasonable steps to enforce claims of the trust and to defend claims against the trust.

(NEW) (Effective JanuaryOctober 1, 2020)2019) 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.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A trustee shall keep the qualified beneficiaries of the trust reasonably informed about the administration of the trust and of the material facts necessary for the beneficiaries to protect their interests.

(c) A trustee shall send a report to the current beneficiaries, and to other qualified beneficiaries who request it, at least annually and at the terminationLCO ofNo. the trust.

Upon3815 a42 vacancyof in94 aRaised trusteeship,Bill unlessNo.7104 atermination cotrusteeof remains in office, the formertrust. trustee shall send a report to the LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710444 of 96 R01-HB.docx } Substitute Bill No.

7104Upon a vacancy in a trusteeship, unless a cotrustee remains in office, the former trustee shall send a report to the current beneficiaries and to other qualified beneficiaries who request it.

(d) A beneficiary of aan inter vivos trust may petition the court for an accounting by the trustee.trustee as provided in section 45a-175 of the general statutes.

The court may grant the petition of:

(1) A qualified beneficiary of testamentary trust, if the court finds that an account is necessary to protect the interests of a beneficiary;

(2) any other beneficiary of a testamentary trust, if the court finds that the same standard applicable to an inter vivos trust as set forth in subsection (c) of section 45a-175 of the general statutes, as amended by this act, is satisfied;

and (3) a beneficiary of an inter vivos trust, if the court finds the standard set forth in subsection (c) of section 45a-175 of the general statutes, as amended by this act, is satisfied.

(h) The provisions of subsectionssubdivisions (b)(2) and (c)(3) of subsection (b) of this section do not apply to a trustee who accepts a trusteeship before October 1, 2019, to an irrevocable trust created before JanuaryOctober 1, 2020,2019, or to a revocable trust that becomes irrevocable before Januarythe October 1, 2020.2019.

LCO(i) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710445Judicial approval of 96a R01-HB.docxtrustee's }report Substituteforecloses Billclaims No.as to those given notice of the proceeding as to matters disclosed in the report.

7104LCO (i)No. Judicial approval of a trustee's report forecloses claims as to those given notice of the proceeding as to matters disclosed in the report.

3815 43 of 94 Raised Bill No.7104 (j) The representation provisions of sections 17 to 21, inclusive, of this act apply with respect to all rights of any beneficiary under this section.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of terms such 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, settlor's intent 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 provisionrule in this subsection does not apply:

(c) A power to make discretionary distributions, the exercise of which is limited or prohibited by subsection (b) of this section, may be LCOexercised {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07146by a majority of 96the R01-HB.docxremaining }trustees Substitutewhose Billexercise No.of such power is not so limited or prohibited.

7104If exercisedthe byexercise a majority of the remainingpower by all trustees whoseis exerciseso oflimited suchor powerprohibited, isthe notcourt somay limitedappoint ora prohibited.LCO No.

If3815 the44 exercise of the94 powerRaised byBill allNo.7104 trustees is so limited or prohibited, the court may appoint a special fiduciary with authority to exercise the power.

(1) A power held by the settlor's spouse who is the trustee of a trust for which a marital deduction, as describeddefined 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 amended from time to time, was previously allowed;

or (3) a trust, if contributions to the trust qualify for the annual exclusion under Section 2503(c) of saidthe Internal Revenue Code.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A trustee, without authorization by the court, may exercise:

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Without limiting the authority conferred by section 65 of this act, and except as otherwise prohibited by law or by the terms of the trust instrument, a trustee may:

LCO(3) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07147Exchange, ofpartition 96or R01-HB.docxotherwise }change Substitutethe Billcharacter No.of trust property;

7104LCO (3)No. Exchange, partition or otherwise change the character of trust property;

3815 45 of 94 Raised Bill No.7104 (4) Deposit trust money in an account in a regulated financial service institution;

(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 LCOperiod {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07148within ofor 96extending R01-HB.docxbeyond }the Substituteduration Billof No.the trust;

7104(10) periodGrant withinan oroption extendinginvolving beyonda thesale, durationlease or other disposition of theLCO trust;No.

(10)3815 Grant46 anof option94 involvingRaised aBill sale,No.7104 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;

LCO(16) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07149Exercise ofelections 96with R01-HB.docxrespect }to Substitutefederal, Billstate No.and local taxes;

7104LCO (16)No. Exercise elections with respect to federal, state and local taxes;

3815 47 of 94 Raised Bill No.7104 (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;

(B) paying it to the beneficiary's conservator ofor, if the estatebeneficiary ordoes guardiannot ofhave a conservator, the estate;beneficiary's guardian;

(C) ifpaying theit beneficiaryto doesthe notbeneficiary's havecustodian aunder conservator of the estateUniform orTransfers guardianto ofMinors theAct estate,or paying it to anthe adultbeneficiary's relativecustodial ortrustee otherunder personthe havingUniform legalCustodial orTrust physicalAct, careand, orfor custodysuch ofa thepurpose, beneficiary,creating toa becustodianship expendedor oncustodial thetrust; beneficiary's behalf;

or (D) managingif itthe astrustee does not know of a separateconservator, fundcustodian onor thecustodial beneficiary'strustee, behalf,paying subjectit to thean beneficiary'sadult continuingrelative rightor other person having legal or physical care or custody of the beneficiary, to withdrawbe expended on the distribution;beneficiary's behalf;

(22) On distribution of trust property or the(E) divisionmanaging orit terminationas of a trust,separate makefund distributionson inthe dividedbeneficiary's orbehalf, undividedsubject interests,to allocatethe particularbeneficiary's assetscontinuing inright proportionateto orwithdraw disproportionate shares, value the trustdistribution; property for such purposes and adjust for resulting LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07150 of 96 R01-HB.docx } Substitute Bill No.

7104(22) differencesOn distribution of trust property or the division or termination of a trust, make distributions in valuation;divided or undivided interests, LCO No.

3815 48 of 94 Raised Bill No.7104 allocate particular assets in proportionate or disproportionate shares, value the trust property for such purposes and adjust for resulting differences in valuation;

This subdivision shall be construed in accordance with the Connecticut Revised Uniform Fiduciary Access to Digital Assets Act, as saidthe actstatute is in effect from time to time during the administration of the trust.

A trustee of a charitable trust and a person holding and administering an endowment fund or an institutional fund, both as defined in section 45a-535a of the general statutes, shall not mortgage, LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710451 of 96 R01-HB.docx } Substitute Bill No.

71043815 49 of 94 Raised Bill No.7104 administering an endowment fund or an institutional fund, as defined in section 45a-535a of the general statutes, shall not mortgage, hypothecate, pledge, use as collateral or otherwise encumber any of the following assets of such charitable trust, endowment fund or institutional fund, if the source of the asset was a charitable gift:

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

and (2)(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.

(c) The provisions of this section apply to any trust whether established before, on or after JanuaryOctober 1, 2020,2019, except that no power is conferred by this section to any trust established before JanuaryOctober 1, 2020,2019, if the trust instrument reflects an intent to disallow the exercise of the power.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Upon termination or partial termination of a trust, the trustee may send to the qualified beneficiaries a proposal for distribution.

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.LCO No.

LCO3815 {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0715250 of 9694 R01-HB.docxRaised } Substitute Bill No.No.7104 breach.

7104 (d) The provisions of this section do not apply to testamentary trusts.

(NEW) (Effective JanuaryOctober 1, 2020)2019) A violation by a trustee of a duty the trustee owes to a beneficiary is a breach of trust.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A trustee is accountable to an affected beneficiary for any profit made by the trustee arising from administration of the trust, even absent a breach of trust.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A beneficiary may not commence a proceeding against a trustee for breach of trust more than one year after the date on which 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.

(e) The provisions of this section do not apply to testamentary LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710453 of 96 R01-HB.docx } Substitute Bill No.

71043815 51 of 94 Raised Bill No7104 (e) The provisions of this section do not apply to testamentary trusts.

(NEW) (Effective JanuaryOctober 1, 2020)2019) 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.

(NEW) (Effective JanuaryOctober 1, 2020)2019) If an event, including marriage, divorce, performance of educational requirements or death affects 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.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A term of a trust relieving a trustee of liability for breach of trust is unenforceable to the extent that it:

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) 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:

LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-071054 of 96 R01-HB.docx } Substitute Bill No.

3815 52 of 94 Raised Bill No.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (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.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Except as 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 LCOfrom {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07104-55ownership or control of 96the R01-HB.docxinterest }unless Substitutethe Billtrustee is LCO No.

71043815 from53 ownership or control of the94 interestRaised unlessBill theNo.7104 trustee is personally at fault.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (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.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Instead of furnishing a copy of the trust instrument to a person other than a beneficiary or, in LCOthe {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07156case of 96a R01-HB.docxcharitable }trust, Substitutethe BillAttorney General's office, the trustee may furnish to the person a certification of trust containing the LCO No.

71043815 the54 case of a94 charitableRaised trust,Bill theNo.7104 Attorney General's office, the trustee may furnish to the person a certification of trust containing the following information:

(g) A person who in good faith enters into a transaction in reliance upon a certification of trust may enforce the transaction against the LCOtrust {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07157property ofas 96if R01-HB.docxthe }representations Substitutecontained Billin No.the certification were correct.

7104LCO trustNo. property as if the representations contained in the certification were correct.

(h)3815 A55 person making a demand for the trust instrument in addition to a certification of trust94 orRaised excerptsBill isNo. liable for damages, including legal fees and costs, if the court determines that the person did not act in good faith in demanding the trust instrument.

7104 (h) A person making a demand for the trust instrument in addition to a certification of trust or excerpts is liable for damages, including legal fees and costs, if the court determines that the person did not act in good faith in demanding the trust instrument.

(NEW) (Effective JanuaryOctober 1, 2020)2019) In applying and construing the uniform provisions of sections 1 to 80, inclusive, of this act, consideration shall be given to the need to promote uniformity of the law with respect to the subject matter among states that enact the uniform provisions.

(NEW) (Effective JanuaryOctober 1, 2020)2019) If any provision of this section or sections 1 to 79, 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 this section or sections 1 to 79, inclusive, of this act which can be given effect without the invalid provision or application, and to this end the provisions of this section and sections 1 to 79, inclusive, of this act are severable.

(NEW) (Effective JanuaryOctober 1, 2020)2019) This section and sections 82 to 98, inclusive, of this act may be cited as the "Connecticut Uniform Directed Trust Act".Provisions of the Connecticut Uniform Trust Code".

(NEW) (Effective JanuaryOctober 1, 2020)2019) Sections 81 to 98, inclusive, of this act apply to a trust, whenever created, that has its principal place of administration in this state, subject to the following rules:

(1) If the trust was created before JanuaryOctober 1, 2020,2019, sections 81 to 98, inclusive, of this act apply only to a decision or action occurring on or LCOafter {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07104-58October of1, 962019. R01-HB.docx } Substitute Bill No.

7104(2) afterIf Januarythe 1,principal 2020.place of administration of the trust is changed to LCO No.

(2)3815 If56 the principal place of administration94 ofRaised theBill trustNo.7104 is changed to this state on or after JanuaryOctober 1, 2020,2019, sections 81 to 98, inclusive, of this act apply only to a decision or action occurring on or after the date of the change.

(NEW) (Effective JanuaryOctober 1, 2020)2019) The common law and principles of equity supplement sections 81 to 98, inclusive, of this act, except to the extent modified by sections 81 to 98, inclusive, of this act or law of this state other than this act.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) As used in this section, "power of appointment" means a power that enables a person acting in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of appointment over trust property.

(A) The terms of the trust provide that the power is held in a LCOnonfiduciary {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07159capacity; of 96 R01-HB.docx } Substitute Bill No.

7104and (B) The power is held in a nonfiduciary capacity;capacity to achieve the settlor's tax objectives under the United States Internal Revenue Code LCO No.

and3815 (B)57 Theof power94 isRaised heldBill inNo7104 a nonfiduciary capacity to achieve the settlor's tax objectives under the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Subject to section 86 of this act, the terms of a trust may grant a power of direction to a trust director.

(NEW) (Effective JanuaryOctober 1, 2020)2019) A trust director is subject to the same rules as a trustee in a like position and under similar circumstances in the exercise or nonexercise of a power of direction or further power under subdivision (1) of subsection (b) of section 85 of this act regarding:

(1) A payback provision in the terms of a trust necessary to comply with the reimbursement requirements of 42 USC 1396p(d)(4)(A),1396p (d)(4)(A), as amended from time to time;

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Subject to the provisions LCOof {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-071060subsection (b) of 96this R01-HB.docxsection, }with Substituterespect Billto No.a power of direction or further power under subdivision (1) of subsection (b) of section 85 of this act:

7104(1) ofA subsectiontrust (b)director ofhas thisthe section,same withfiduciary respectduty toand aliability powerin ofthe directionLCO orNo. further power under subdivision (1) of subsection (b) of section 85 of this act:

(1)3815 A58 trustof director94 hasRaised theBill sameNo.7104 fiduciary duty and liability in the exercise or nonexercise of the power:

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Subject to the provisions of subsection (b) of this section, a directed trustee shall take reasonable action to comply with a trust director's exercise or nonexercise of a power of direction or further power under subdivision (1) of subsection (b) of section 85 of this act and the trustee is not liable for the action.

(b) A directed trustee shallmust not comply with a trust director's exercise or nonexercise of a power of direction or further power under LCOsubdivision {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07161(1) of 96subsection R01-HB.docx(b) }of Substitutesection Bill85 No.of this act to the extent that by complying the trustee would engage in wilful misconduct.

7104 subdivision (1) of subsection (b) of section 85 of this act to the extent that by complying the trustee would engage in wilful misconduct.

(1) The breach involved the trustee's or other director'sLCO wilfulNo. misconduct;

3815 59 of 94 Raised Bill No.7104 director's wilful misconduct;

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Subject to the provisions of section 90 of this act, a trustee shall provide information to a trust director to the extent the information is reasonably related to:

(d) A trust director that acts in reliance on information provided by a trustee or another trust director is not liable for a breach of trust to LCOthe {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07104-62extent ofthe 96breach R01-HB.docxresulted }from Substitutethe Billreliance, No.unless by so acting the trust director engages in wilful misconduct.

7104 the extent the breach resulted from the reliance, unless by so acting the trust director engages in wilful misconduct.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Unless the terms of a trust provide otherwise:

or (B) inform or give advice to a settlor, beneficiary,LCO trusteeNo. or trust director concerning an instance in which the trustee might have acted differently than the director;

3815 60 of 94 Raised Bill No.7104 beneficiary, trustee or trust director concerning an instance in which the trustee might have acted differently than the director;

(NEW) (Effective JanuaryOctober 1, 2020)2019) The terms of a trust may relieve a cotrustee from duty and liability with respect to another cotrustee's exercise or nonexercise of a power of the other cotrustee to the same extent that, in a directed trust, a directed trustee is relieved from duty and liability with respect to a trust director's power of direction under sections 88 to 90, inclusive, of this act.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) An action against a trust director for breach of trust must be commenced within the same limitation period as under section 70 of this act for an action for breach of trust against a trustee in a like position and under similar circumstances.

(b) A financial report or accounting has the same effect on the limitation period for an action against a trust director for breach of trust that the financial report or accounting would have under section 70 of this act in an action for breach of trust against a trustee in a like LCOposition {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07163and ofunder 96similar R01-HB.docxcircumstances. } Substitute Bill No.

7104 position and under similar circumstances.

(NEW) (Effective JanuaryOctober 1, 2020)2019) In an action against a trust director for breach of trust, the director may assert the same defenses a trustee in a like position and under similar circumstances could assert in an action for breach of trust against the trustee.

Sec.LCO No.

3815 61 of 94 Raised Bill No.7104 Sec.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) By accepting appointment as a trust director of a trust subject to sections 81 to 98, inclusive, of this act, the director submits to personal jurisdiction of the courts of this state regarding any matter related to a power or duty of the director.

(NEW) (Effective JanuaryOctober 1, 2020)2019) Unless the terms of a trust provide otherwise, the rules applicable to a trustee apply to a trust director regarding the following matters:

(NEW) (Effective JanuaryOctober 1, 2020)2019) In applying and construing the uniform provisions of sections 81 to 98, inclusive, of this act, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07164 of 96 R01-HB.docx } Substitute Bill No.

7104 Sec.

97.

(NEW) (Effective January 1, 2020) Sections 81 to 98, inclusive, of this act modify, limit and supersede the Electronic Signatures in Global and National Commerce Act, 15 USC 7001 et seq., but do not modify, limit or supersede Section 101(c) of said act, 15 USC 7001(c), or authorize electronic delivery of any of the notices described in Section 103(b) of said act, 15 USC 7003(b).

97.

(NEW) (Effective October 1, 2019) Sections 81 to 98, inclusive, of this act modify, limit or supersede the Electronic Signatures in Global and National Commerce Act, 15 USC 7001 et seq., but do not modify, limit or supersede Section 101(c) of that act, 15 USC 7001 (c), or authorize electronic delivery of any of the notices described in Section 103(b) of that act, 15 USC 7003 (b).

LCO No.

3815 62 of 94 Raised Bill No.7104 Sec.

(NEW) (Effective JanuaryOctober 1, 2020)2019) The provisions of this section and sections 81 to 97, inclusive, of this act governing the legal effect, validity or enforceability of electronic records or electronic signatures, and of contracts formed or performed with the use of the records or signatures, conform to the requirements of Section 102 of the Electronic Signatures in Global and National Commerce Act, 15 USC 7002 and supersede, modify and limit the requirements of that act.

(NEW) (Effective JanuaryOctober 1, 2020)2019) This section and sections 100 to 108, inclusive, of this act may be cited as the "Connecticut Qualified Dispositions in Trust Act".Provisions of the Connecticut Uniform Trust Code".

(NEW) (Effective JanuaryOctober 1, 2020)2019) As used in this section and sections 101 to 108, inclusive, of this act:

(1) "Claim" means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal,legal equitable, secured or unsecured.

(2) "Creditor" means, with respect to a transferor, a person who has a claim.

(4) "Disposition" means a transfer, conveyance or assignment of property, including a change in the legal ownership of property occurring upon the substitution of one trustee for another or the addition of one or more new trustees, or the exercise of a power so as LCOto {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710465cause a transfer of 96property, R01-HB.docxto }a Substitutetrustee Billor No.trustees.

7104 to cause a transfer of property, to a trustee or trustees.

(5) "Property" includes real property, tangible and intangible personal property, and interests in real or personal property, tangible andLCO intangible.No.

3815 63 of 94 Raised Bill No.7104 and intangible.

(A) Any person, other than the transferor, who in the case of an individual, is a resident of this state or who, in all other cases, is a state or federally chartered bank or trust company having a place of business in this state, is authorized to engage in a trust business in this state, and maintains or arranges for custody in this state of some or all of the property that is the subject of the qualified disposition, LCOmaintains {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710466records in this state for the trust on an exclusive or nonexclusive basis, prepares or arranges for the preparation in this state of 96fiduciary R01-HB.docxincome }tax Substitutereturns Billfor No.the trust, or otherwise materially participates in this state in the administration of the trust.

7104(B) maintains"Qualified recordstrustee" indoes thisnot stateinclude for(i) the trusttransferor, on(ii) anany exclusiveLCO orNo. nonexclusive basis, prepares or arranges for the preparation in this state of fiduciary income tax returns for the trust, or otherwise materially participates in this state in the administration of the trust.

(B)3815 "Qualified64 trustee"of does94 notRaised includeBill (i)No.7104 the transferor, (ii) any other individual who is a nonresident of this state, or (iii) an entity that is not authorized by the laws of this state to act as a trustee or whose activities are not subject to supervision as provided in subparagraph (A) of this subdivision.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Nothing in sections 99 to 108, inclusive, of this act shall be construed to preclude a transferor from appointing one or more trust directors, including, but not limited to:

LCOand {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-071067(2) Trust directors who have authority under the terms of 96the R01-HB.docxtrust }instrument Substituteto Billdirect, No.consent to or disapprove distributions from the trust.

7104(b) andA (2)transferor Trustmay directorsserve whoas havetrust authoritydirector, underbut the termspower of thea trust instrumentLCO toNo. direct, consent to or disapprove distributions from the trust.

(b)3815 A65 transferorof may94 serveRaised asBill trustNo.7104 director,director but the power of a trust director, who is the transferor shall be limited to the retention of the veto right permitted by subdivision (1) of section 103 of this act.

(c) For purposes of this section, "trust director" includes a trust director,director as definedprovided in section 3 of this act, a trust protector, a trust advisor or any other person who, in addition to a qualified trustee, holds one or more trust powers.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) If a qualified trustee of a trust ceases to meet the requirements of subparagraph (A) of subdivision (9) of section 100 of this act and no remaining trustee meets the requirements of said subparagraph, the qualified trustee shall be deemed to have resigned at the time of the cessation and the successor qualified trustee provided for in the trust instrument shall become a qualified trustee of the trust.

Notwithstanding the provisions of subparagraph (A) of subdivision (9) of section 100 of this act, a disposition by a trustee who is not a qualified trustee to a trustee who is a qualified trustee will not fail to qualify as a qualified disposition solely because the trust instrument does not contain an express LCOprovision {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07168that the laws of 96this R01-HB.docxstate }govern Substitutethe Billvalidity, No.construction and administration of the trust.

7104 provision that the laws of this state govern the validity, construction and administration of the trust.

(NEW) (Effective JanuaryOctober 1, 2020)2019) For purposes of subparagraph (B) of subdivision (10) of section 100 of this act, a trust instrument is irrevocable regardless of whether the transferor retained any of the following rights, powers and interests:

(1)LCO ANo. transferor's power to veto a distribution from the trust;

3815 66 of 94 Raised Bill No.7104 (1) A transferor's power to veto a distribution from the trust;

(4) The transferor's potential or actual receipt of income or principal from a charitable remainder unitrust or charitable remainder annuity trust,trust as such terms are defined in 26 USC 664, as amended from time to time;

LCO(A) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07169In ofthe 96discretion R01-HB.docxof }the Substitutequalified Billtrustee; No.

7104 (A) In the discretion of the qualified trustee;

or (C) At the direction of a trust director described in section 101 of this act who is acting in the director's discretion, or pursuant to a standard that governsLCO theNo. distribution of principal and does not confer upon the transferor a substantially unfettered right to the receipt of or use of principal.

3815 67 of 94 Raised Bill No.7104 governs the distribution of principal and does not confer upon the transferor a substantially unfettered right to the receipt of or use of principal.

and (9) The transferor's potential or actual receipt of income or principal to pay, in whole or in part, income taxes due on income of the trust if the potential or actual receipt of income or principal is pursuant to a provision in the trust instrument that expressly provides for the payment of the taxes and if such potential or actual receipt of income or principal would be the result of a qualified trustee acting:

or (B) At the direction of a trust director described in section 101 of this LCOact {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-071070who ofis 96acting R01-HB.docxin }the Substitutedirector's Billdiscretion. No.

7104 act who is acting in the director's discretion.

(NEW) (Effective JanuaryOctober 1, 2020)2019) A qualified disposition shall be subject to sections 99 to 108, inclusive, of this act notwithstanding a transferor's retention of any of the powers and rights described in section 103 of this act and the transferor's service as investment director or advisor pursuant to section 101 of this act.

The transferor shall have only such powers and rights as are conferred by theLCO trustNo. instrument.

3815 68 of 94 Raised Bill No.7104 the trust instrument.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Notwithstanding any provision of the general statutes, no action of any kind, including, without limitation, an action to enforce a judgment entered by a court or other body having adjudicative authority, shall be brought at law or in equity for an attachment or other provisional remedy against property that is the subject of a qualified disposition or for avoidance of a qualified disposition, unless the action is brought pursuant to section 52-552h of the general statutes.

(b) Notwithstanding the provisions of section 52-552j of the general statutes, a creditor may not bring an action under subsection (a) of this section if:

or LCO(2) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07171The ofcreditor's 96claim R01-HB.docxagainst }the Substitutetransferor Billarose No.subsequent to the qualified disposition, unless the action is brought within four years after the qualified disposition is made.

7104(c) (2)For Thethe creditor'spurposes claimof againstsections the99 to 108, inclusive, of this act, a qualified disposition that is made by means of a disposition by a transferor arosewho subsequentis a trustee shall be deemed to thehave qualifiedbeen disposition,made unlessas of the actiontime the property that is broughtthe withinsubject fourof yearsthe afterqualified disposition was originally transferred to the transferor, or any predecessor trustee, making the qualified disposition isin made.a form that conforms with the LCO No.

(c)3815 For69 the purposes of sections94 99Raised toBill 108,No.7104 inclusive, of this act, a qualified disposition that is made by means of a disposition by a transferor who is a trustee shall be deemed to have been made as of the time the property that is the subject of the qualified disposition was originally transferred to the transferor, or any predecessor trustee, making the qualified disposition in a form that conforms with the requirements set forth in subdivision (10) of section 100 of this act.

For purposes of sections 99 to 108, inclusive, of this act, an irrevocable written election includesshall include a description of the original transferor's powers of appointment as modified together with the original transferor's written consent to the election but no such consent of the original transferor shall be considered a disposition within the meaning of subdivision (4) of section 100 of this act.

(d) Notwithstanding any provision of the general statutes, a creditor, including a creditor whose claim arose before or after a qualified disposition, or any other person shall have only such rights with respect to a qualified disposition as are provided in this section and sections 106 and 107 of this act, and no such creditor nor any other person shall have any claim or cause of action against the trustee, or trustan director,advisor, as described in section 101 of this act, of a trust that is the subject of a qualified disposition, or against any person involved in the counseling, drafting, preparation, execution or funding of a trust LCOthat {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07172is ofthe 96subject R01-HB.docxof }a Substitutequalified Billdisposition. No.

7104(e) Notwithstanding any other provision of the general statutes, no action of any kind, including, without limitation, an action to enforce a judgment by a court or other body having adjudicative authority, shall be brought at law or in equity against the trustee, or advisor described in section 101 of this act, of a trust that is the subject of the qualified disposition, or against any person involved in the counseling, drafting, preparation, execution or funding of a trust that is the subject of a qualified disposition.disposition, if, as of the date the action is brought, an action by a creditor with respect to the qualified disposition would be barred LCO No.

(e)3815 Notwithstanding70 any other provision of the94 generalRaised statutes,Bill noNo.7104 action of any kind, including, without limitation, an action to enforce a judgment by a court or other body having adjudicative authority, shall be brought at law or in equity against the trustee, or trust director, as described in section 101 of this act, of a trust that is the subject of the qualified disposition, or against any person involved in the counseling, drafting, preparation, execution or funding of a trust that is the subject of a qualified disposition, if, as of the date the action is brought, an action by a creditor with respect to the qualified disposition would be barred under this section.

or (2) if the trust instrument does not provide for a successor trustee and the trust would otherwise be without a trustee, the court having jurisdiction pursuant to sections 15 and 16 of this act, upon the application of any beneficiary of the trust, LCOshall {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-071073appoint a successor trustee upon such terms and conditions as it determines to be consistent with the purposes of 96the R01-HB.docxtrust }and Substitutethe Billprovisions No.of this section.

7104 shall appoint a successor trustee upon such terms and conditions as it determines to be consistent with the purposes of the trust and the provisions of this section.

(NEW) (Effective JanuaryOctober 1, 2020)2019) Notwithstanding the provisions of section 105 of this act, sections 99 to 108, inclusive, of this act,LCO shallNo. not apply to defeat a claim brought by:

3815 71 of 94 Raised Bill No.7104 act, shall not apply to defeat a claim brought by:

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) A qualified disposition shall be avoided only to the extent necessary to satisfy the transferor's debt to the creditor at whose instance the disposition had been avoided, together with any costs, including attorney's fees, that the court may allow.

LCO(b) {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07174If any qualified disposition is avoided pursuant to subsection (a) of 96this R01-HB.docxsection, }the Substitutefollowing Billrules No.apply:

7104 (b) If any qualified disposition is avoided pursuant to subsection (a) of this section, the following rules apply:

(B)LCO TheNo. qualified disposition shall be avoided subject to the proper fees, costs, preexisting rights, claims and interest of the trustee and of any predecessor trustee that has not acted in bad faith;

3815 72 of 94 Raised Bill No.7104 (B) The qualified disposition shall be avoided subject to the proper fees, costs, preexisting rights, claims and interest of the trustee and of any predecessor trustee that has not acted in bad faith;

(c) A creditor has the burden of proving by clear and convincing evidence that a trustee or beneficiary acted in bad faith as set forth in subsection (b) of this section, except, in the case of a beneficiary who is also the transferor, the burden on the creditor is to prove by a preponderance of the evidence that the transferor-beneficiary acted in LCObad {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07175faith. of 96 R01-HB.docx } Substitute Bill No.

7104 bad faith.

(NEW) (Effective JanuaryOctober 1, 2020)2019) The provisions of this section and sections 100 to 107, inclusive, of this act, apply to qualified dispositions made on or after JanuaryOctober 1, 2020.2019.

Sec.LCO No.

3815 73 of 94 Raised Bill No.7104 Sec.

(NEW) (Effective JanuaryOctober 1, 2020)2019) (a) Except as otherwise provided in sections 1 to 108, inclusive, of this act, on JanuaryOctober 1, 2020,2019, the following rules apply:

(1) Sections 1 to 108, inclusive, of this act apply to all trusts created before, on or after JanuaryOctober 1, 2020.2019.

(2) Sections 1 to 108, inclusive, of this act apply to all judicial proceedings concerning trusts commenced on or after JanuaryOctober 1, 2020.2019.

(3) Sections 1 to 108, inclusive, of this act apply to judicial proceedings concerning trusts commenced before JanuaryOctober 1, 2020,2019, unless the court in which the judicial proceeding is pending finds that application of a particular provision of sections 1 to 108, inclusive, of this act would substantially interfere with the effective conduct of the judicial proceedings or prejudice the rights of the parties.

(4) Any rule of construction or presumption provided in sections 1 to 108, inclusive, of this act applies to trust instruments executed before JanuaryOctober 1, 2020,2019, unless there is a clear indication of a contrary LCOintent {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0710476in ofthe 96terms R01-HB.docxof }the Substitutetrust. Bill No.

7104(5) intentAn inact thedone termsbefore October 1, 2019, is not affected by sections 1 to 123, inclusive, of thethis trust.act.

(5)(6) AnThe actninety-year doneperiod beforespecified Januaryin 1,subdivision 2020,(1) isof notsection affected29 byof sectionsthis 1act applies only to 108,trusts inclusive,that ofbecome thisirrevocable act.on or after October 1, 2019.

(b)(7) IfThe aprovisions right is acquired, extinguished or barred upon the expiration of asubsections prescribed(b) periodand that(c) has commenced to run under any provision of thesection general63 statutes, other than sections 1 to 108, inclusive, of this act beforeapply Januaryonly 1, 2020, the provision of the general statutes continues to applytrusts tothat thebecome rightirrevocable evenon ifor theafter provisionOctober has1, been2019. repealed or superseded.