reglab/statecodes huggingface dataset:
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-500k. - No duty to monitor, inform or advise.

(a) Unless the terms of a trust provide otherwise: (1) A trustee does not have a duty to: (A) Monitor a trust director; or (B) inform or give advice to a settlor, beneficiary, trustee or trust director concerning an instance in which the trustee might have acted differently than the director; and (2) by taking an action described in subdivision (1) of this subsection, a trustee does not assume the duty excluded in said subdivision.
(b) Unless the terms of a trust provide otherwise: (1) A trust director does not have a duty to: (A) Monitor a trustee or another trust director; or (B) inform or give advice to a settlor, beneficiary, trustee or another trust director concerning an instance in which the director might have acted differently than a trustee or another trust director; and (2) by taking an action described in subdivision (1) of this subsection, a trust director does not assume the duty excluded by said subdivision.
(P.A. 19-137, S. 90.)
History: P.A. 19-137 effective January 1, 2020.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-500l. - Application to cotrustee.

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 45a-500i to 45a-500k, inclusive.
(P.A. 19-137, S. 91.)
History: P.A. 19-137 effective January 1, 2020.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-500m. - Limitation of action against trust director.

(a) An action against a trust director for breach of trust must be commenced within the same limitation period as under section 45a-499rrr 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 45a-499rrr in an action for breach of trust against a trustee in a like position and under similar circumstances.
(P.A. 19-137, S. 92.)
History: P.A. 19-137 effective January 1, 2020.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-500n. - Defenses in action against trust director.

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.
(P.A. 19-137, S. 93.)
History: P.A. 19-137 effective January 1, 2020.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-500o. - Jurisdiction over trust director.

(a) By accepting appointment as a trust director of a trust subject to sections 45a-500b to 45a-500s, inclusive, the director submits to personal jurisdiction of the courts of this state regarding any matter related to a power or duty of the director.
(b) This section does not preclude other methods of obtaining jurisdiction over a trust director.
(P.A. 19-137, S. 94.)
History: P.A. 19-137 effective January 1, 2020.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-500p. - Office of trust director.

Unless the terms of a trust provide otherwise, the rules applicable to a trustee apply to a trust director regarding the following matters:
(1) Acceptance under section 45a-499rr;
(2) Giving of bond to secure performance under section 45a-499ss;
(3) Reasonable compensation under section 45a-499yy;
(4) Resignation under section 45a-499vv;
(5) Removal under section 45a-499ww; and
(6) Vacancy and appointment of successor under section 45a-499uu.
(P.A. 19-137, S. 95.)
History: P.A. 19-137 effective January 1, 2020.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-500q. - Uniformity of application and construction.

In applying and construing the uniform provisions of sections 45a-500b to 45a-500s, inclusive, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
(P.A. 19-137, S. 96.)
History: P.A. 19-137 effective January 1, 2020.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-500r. - Relation to Electronic Signatures in Global and National Commerce Act.

Sections 45a-500b to 45a-500s, inclusive, modify, limit and supersede the Electronic Signatures in Global and National Commerce Act, 15 USC 7001 et seq., but do not modify, limit or supersede 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).
(P.A. 19-137, S. 97.)
History: P.A. 19-137 effective January 1, 2020.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-500s. - Application of Connecticut Uniform Directed Trust Act with respect to federal act.

The provisions of this section and sections 45a-500b to 45a-500r, inclusive, 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.
(P.A. 19-137, S. 98.)
History: P.A. 19-137 effective January 1, 2020.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-502. (Formerly Sec. 45-96a). - “Majority” defined for trusts executed prior to October 1, 1972.

When the word “majority” is used in a will or trust instrument executed prior to October 1, 1972, it shall be construed to mean a person who has attained the age of twenty-one.
(1972, P.A. 127, S. 73.)
History: Sec. 45-96a transferred to Sec. 45a-502 in 1991.
Annotation to former section 45-96a:
Cited. 168 C. 144.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-503. (Formerly Sec. 45-95). - Rule against perpetuities. “Second look” doctrine.

In applying the rule against perpetuities to an interest in real or personal property created before October 1, 1989, limited to take effect at or after the termination of one or more life estates in, or lives of, persons in being when the period of said rule commences to run, the validity of the interest shall be determined on the basis of facts existing at the termination of such one or more life estates or lives. For the purpose of this section, an interest which must terminate not later than the death of one or more persons is a life estate although it may terminate at an earlier time.
(1955, S. 2912d; P.A. 89-44, S. 8.)
History: P.A. 89-44 limited applicability of section to an interest created before October 1, 1989; Sec. 45-95 transferred to Sec. 45a-503 in 1991.
Annotations to former section 45-95:
Application of “second look” doctrine. 174 C. 616, 628. Cited. 213 C. 676.
When contingent remainder not cured under section. 29 CS 275. Cited. 41 CS 79.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-504. (Formerly Sec. 45-96). - Reduction of age contingency to preserve interest.

If an interest in real or personal property created before October 1, 1989, would violate the rule against perpetuities as modified by section 45a-503 because such interest is contingent upon any person attaining or failing to attain an age in excess of twenty-one, the age contingency shall be reduced to twenty-one as to all persons subject to the same age contingency.
(1955, S. 2913d; 1972, P.A. 127, S. 68; P.A. 73-35, S. 1, 2; P.A. 89-44, S. 9.)
History: 1972 act reduced age of majority from 21 to 18; P.A. 73-35 returned applicable age to 21; P.A. 89-44 limited applicability of section to an interest created before October 1, 1989; Sec. 45-96 transferred to Sec. 45a-504 in 1991.
Annotation to former section 45-96:
Cited. 29 CS 275.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-505. (Formerly Sec. 45-97). - Fee simple determinable or subject to right of entry to become absolute, when.

A fee simple determinable in land or a fee simple in land subject to a right of entry for condition broken shall become a fee simple absolute if the specified contingency does not occur within thirty years from the date when such fee simple determinable or such fee simple subject to a right of entry becomes possessory. If such contingency occurs within such thirty years, the succeeding interest, which may be an interest in a person other than the person creating the interest or his heirs, shall become possessory or the right of entry exercisable notwithstanding the rule against perpetuities. If a fee simple determinable in land or a fee simple in land subject to a right of entry for condition broken is so limited that the specified contingency must occur, if at all, within the period of the rule against perpetuities, said interests shall take effect as limited. This section shall not apply where both such fee simple determinable and such succeeding interest, or both such fee simple and such right of entry, are for public, charitable or religious purposes; nor shall it apply to a deed, gift or grant of the state or any political subdivision thereof.
(1955, S. 2914d.)
History: Sec. 45-97 transferred to Sec. 45a-505 in 1991.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-506. (Formerly Sec. 45-98). - Limitations not invalidated, when.

Except as provided in the first sentence of section 45a-505, sections 45a-502 to 45a-507, inclusive, shall not be construed to invalidate or modify the terms of any limitation which would have been valid prior to October 1, 1955.
(1955, S. 2915d.)
History: Sec. 45-98 transferred to Sec. 45a-506 in 1991.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-507. (Formerly Sec. 45-99). - Application of rule.

Sections 45a-502 to 45a-506, inclusive, shall apply only to inter vivos instruments and wills taking effect after October 1, 1955, and to appointments made after said date, including appointments by inter vivos instrument or will under powers created before said date. Said sections shall apply to both legal and equitable interests.
(1955, S. 2916d.)
History: Sec. 45-99 transferred to Sec. 45a-507 in 1991.
Annotation to former section 45-99:
Application of “second look” doctrine. 174 C. 616.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-508. (Formerly Sec. 45-100). - Exemption of certain employees' trust funds from the rule against perpetuities.

A trust created by an employer as part of a stock bonus, pension, disability, death benefit or profit-sharing plan for the benefit of some or all employees, to which contributions are made by the employer or employees or both, for the purpose of distributing to the employees the earnings or the principal, or both earnings and principal, of the fund held in trust, shall not be deemed to be invalid as violating any existing law or rule of law against perpetuities or suspension of the power of alienation of the title to property. A trust created for such purpose may continue for such time as may be necessary to accomplish the purposes for which it has been created. The income arising from any property held in any such trust may be permitted to accumulate in accordance with the terms of such trust and the plan of which such trust forms a part for such time as may be necessary to accomplish the purposes for which such trust has been created. Any rule of law against perpetuities or suspension of the power of alienation of the title to property shall not invalidate any such trust.
(1949 Rev., S. 6898; P.A. 80-476, S. 223.)
History: P.A. 80-476 made minor changes in wording and deleted obsolete provision re invalidation of trusts “terminated by a court of competent jurisdiction in a suit instituted within three years after May 21, 1947”; Sec. 45-100 transferred to Sec. 45a-508 in 1991.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-514. (Formerly Sec. 45-79). - Charitable trusts.

Any charitable trust or use created in writing or by deed by any resident of the state, or any public and charitable trust or use for aiding and assisting any person or persons to be selected by the trustees of such trust or use to acquire education, shall forever remain to the uses and purposes to which it has been granted according to the true intent and meaning of the grantor and to no other use.
(1949 Rev., S. 6882.)
History: Sec. 45-79 transferred to Sec. 45a-514 in 1991.
See Sec. 47-2 re charitable uses of estates.
Annotations to former section 45-79:
A trust to promote the distribution of books or pamphlets may, in the absence of any profit element, qualify as a valid charity; gifts devoted to illegal objectives are void. 143 C. 247. Upon failure of trust, a resulting trust arises in favor of grantor-testator's estate. 150 C. 570. A charitable trust is to be construed, as far as reasonably possible, so as to uphold the trust. 157 C. 265. Lands and property owned by charitable organization devoted to a charitable public use may not be used for commercial purposes unless reasonably necessary to continue the charitable purpose of such organization. 168 C. 447. Cited. 172 C. 496; 179 C. 62; 209 C. 429.
The modified doctrine of cy pres, or of approximation, exists only when the specific method adopted by the testator for carrying his general intent into effect can no longer be executed, but court held that the fact that at any particular time there are only a few, or even no, persons qualified to receive the benefit intended by a charitable bequest is not necessarily a reason for holding that such bequest has failed. 21 CS 217. Applicability of cy pres doctrine or doctrine of approximation depends on proof of general dominant charitable intent to which particular expressed intent is secondary. 27 CS 176. Neither doctrine of cy pres nor that of deviation will be applied when testator's express directions can be carried out. Id., 483.
Annotation to present section:
Cited. 225 C. 32.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-515. (Formerly Sec. 45-80). - Charitable uses determined by trustee, when.

Any person may, by will, deed or other instrument, give, devise or bequeath property, real or personal or both, to any trustee or trustees, and may provide in such instrument that the property so given, devised or bequeathed shall be held in trust and the income or principal applied in whole or in part for any charitable purpose. A donor or testator shall not be required to designate in such will, deed or other instrument the particular charitable purpose or class of purposes for which the property shall be used or the income applied. Any such gift, devise or bequest shall be valid and operative, provided the donor or testator shall give to the trustee or trustees thereof or to any other person or persons, the power to select, from time to time and in such manner as such donor or testator may direct, the charitable purpose or purposes to which such property or the income thereof shall be applied; and such gift, devise or bequest, accompanied by such power of selection, shall not be void by reason of uncertainty.
(1949 Rev., S. 6883; P.A. 80-476, S. 224.)
History: P.A. 80-476 rephrased provisions; Sec. 45-80 transferred to Sec. 45a-515 in 1991.
Annotations to former section 45-80:
Trusts for support of religion are charitable trusts; trust giving trustee power to select particular mission held to comply with statute. 113 C. 231. Trust not void for uncertainty if trustee can distribute only to institutions exclusively devoted to charitable purposes. 123 C. 552. Trust valid with direction that trustee distribute “to such charitable and educational purposes as it may deem wise and prudent.” 126 C. 665. Effect of section is to make valid a bequest to charity generally, provided that by the terms of the bequest there is an absolute power vested in either a trustee or some other person to determine to what specific charity the property bequeathed shall be devoted. 138 C. 676. Cited. 157 C. 268.
Cited. 18 CS 100. A trustee, in fulfillment of his duty to give effect to the testator's charitable intentions as made apparent in the will, may use surplus income to bestow on the charities named by the testator additional benefits in proportion to their original shares. 22 CS 409.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-516. (Formerly Sec. 45-81). - Gifts to charitable community trust.

Any person may incorporate by reference in any will, deed or other instrument, the terms, conditions, trusts, uses or purposes of any existing written or printed resolution, declaration or deed of trust passed by any corporation or executed by any person whereby there is established or is attempted to be established any charitable community trust. Any gift, devise or bequest so given to any person or corporation, in trust for any use or purpose of such charitable community trust, shall be valid and effectual notwithstanding that the terms, conditions, uses and purposes thereof are not otherwise recited in such deed, will or other instrument than by such reference; and the property so given to such person or corporation shall be used for the purposes and upon the terms, conditions and trusts contained in such resolution, declaration or deed of trust establishing such community trust, so far as the same do not conflict with the intent of the donor or testator as expressed in such will, deed or other instrument. Any gift, devise or bequest so made shall not be void for uncertainty or invalid because such resolution, declaration or deed of trust establishing such community trust was not executed by the testator or donor in accordance with statutory provisions, provided such will, deed or other instrument is executed in accordance with such provisions.
(1949 Rev., S. 6884; P.A. 80-476, S. 225.)
History: P.A. 80-476 made minor changes in wording; Sec. 45-81 transferred to Sec. 45a-516 in 1991.
Annotation to former section 45-81:
Cited. 126 C. 670.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-517. (Formerly Sec. 45-82). - Community trustees to render annual accounts. Hearing on adjustment and allowance.

(a) The trustee or trustees of any charitable community trust shall annually render an account signed under penalty of false statement to the court of probate for the district in which the trust is being administered. The account shall include an inventory of the estate held by such trustee or trustees and shall state the manner in which the principal of such fund is invested and the items of income and expenditure.
(b) The court of probate shall direct the notice, if any, which shall be given of the hearing upon the adjustment and allowance of any such account. The court may adjust and allow the account and make any order necessary to secure the execution of the duties of such trustee or trustees, subject to appeal as provided for appeals from orders of the probate court.
(1949 Rev., S. 6885; P.A. 80-476, S. 226; P.A. 99-84, S. 22.)
History: P.A. 80-476 divided section into Subsecs. and rephrased provisions; Sec. 45-82 transferred to Sec. 45a-517 in 1991; P.A. 99-84 amended Subsec. (a) by deleting “under oath” and inserting “signed under penalty of false statement”.
Annotation to former section 45-82:
Cited. 126 C. 670.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-520. (Formerly Sec. 45-79b). - Termination of charitable trusts.

(a) As used in this section: (1) “Charitable beneficiary” and “charitable entity” include, without limitation, towns, ecclesiastical society and cemetery associations owning or controlling the operation of a cemetery or burial ground; and (2) “charitable trust” means a trust for the benefit of one or more charitable beneficiaries.
(b) In any case where the current market value of the assets of a testamentary or inter vivos charitable trust is less than one hundred fifty thousand dollars, any trustee thereof, any charitable beneficiary specifically designated in the governing instrument or the Attorney General may petition a Probate Court specified in section 45a-499p for an order terminating the trust. Upon receipt of such a petition, the court shall order a hearing and cause notice thereof to be given to the Attorney General, the trustees, the grantor of the trust, if living, and any charitable beneficiary of the trust specifically designated in the governing instrument. If at such a hearing the court determines that continuation of the trust is uneconomic when the costs of operating the trust, probable income and other relevant factors are considered or not in the best interest of the beneficiaries, the court may order termination of the trust and distribution of the trust assets to any charitable beneficiary specifically designated in the governing instrument or, if no such beneficiary exists, to such other charitable trusts or charitable entities, including any community trust or foundation, as the court may determine will fulfill the charitable purposes of the trust being so terminated.
(c) The provisions of this section shall not apply to termination of trusts or funds as provided in chapter 368j.
(P.A. 79-365; P.A. 80-221; P.A. 82-155; P.A. 84-294, S. 14; P.A. 86-234, S. 3, 6; P.A. 96-35; P.A. 14-122, S. 181; P.A. 19-137, S. 121.)
History: P.A. 80-221 inserted Subsec. (a) defining charitable beneficiaries, entities and trusts, made previous provisions Subsec. (b) clarifying to which court petition should be brought and added Subsec. (c); P.A. 82-155 amended Subsec. (b) by increasing from $10,000 to $15,000 the limitation on the maximum value of a trust which may be terminated; P.A. 84-294 amended Subsec. (b) by increasing limit on market value of assets of a testamentary or inter vivos charitable trust from $15,000 to $20,000; P.A. 86-234 amended Subsec. (b) by increasing the asset level of the trust from $20,000 to $65,000; Sec. 45-79b transferred to Sec. 45a-520 in 1991; P.A. 96-35 amended Subsec. (b) by increasing asset level of trust to $150,000; P.A. 14-122 made technical changes in Subsec. (a); P.A. 19-137 amended Subsec. (b) by replacing “court of probate” with “Probate Court specified in section 45a-499p”, deleted provisions re Probate Court district in which petition is to be brought, and made a technical change, effective January 1, 2020.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-521. - Superior Court or Probate Court jurisdiction to reform charitable remainder unitrust re payment.

(a) Upon a petition filed within the period specified in 26 CFR 1.664-3, by a trustee of a charitable remainder unitrust, the Superior Court, or a Probate Court specified in section 45a-499p shall have jurisdiction to reform such charitable remainder unitrust for the sole purpose of substituting a provision allowing payment of the unitrust amount under 26 CFR 1.664-3 for an existing provision providing for payment of the unitrust amount under 26 CFR 1.664-3.
(b) The Superior Court or the Probate Court are empowered to reform such trust only to the extent the court finds that such reformation is consistent with the original intent of the testator or donor.
(c) This section shall not be construed to effect a change in any dispositive provision of the trust as provided in section 45a-514.
(P.A. 99-164, S. 34, 36; P.A. 19-137, S. 122.)
History: P.A. 99-164 effective June 23, 1999; P.A. 19-137 amended Subsec. (a) by replacing reference to Code of Federal Regulations title and section with “26 CFR 1.664-3”, deleting provision re trustee or trust subject to jurisdiction of Probate Court, deleting “, provided such an accounting need not be required,” and adding “specified in section 45a-499p”, and amended Subsec. (b) by making a technical change, effective January 1, 2020.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-526 to 45a-529. (Formerly Secs. 45-100h to 45-100k). - Short title: Uniform Management of Institutional Funds Act. Definitions. Expenditure of net appreciation, standards. Exception and restriction on expenditure of net appreciation; construction.

Sections 45a-526 to 45a-529, inclusive, are repealed, effective April 29, 2008.
(P.A. 73-548, S. 1–3, 9; P.A. 74-121, S. 1, 2; P.A. 80-476, S. 211; P.A. 93-189, S. 4, 5; P.A. 08-6, S. 4.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-529a and 45a-529b. - Accumulation of annual net income, standards. Exception and restriction on accumulation of annual net income; construction.

Sections 45a-529a and 45a-529b are repealed, effective April 29, 2008.
(P.A. 93-189, S. 2, 3; P.A. 08-6, S. 4.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-530 to 45a-534. (Formerly Secs. 45-100l to 45-100p). - Investment of institutional funds. Delegation of powers of investment. Standards applicable to actions of governing board. Release of restriction in gift instrument: Written consent, court order; limitations; doctrine of cy pres applicable. Construction.

Sections 45a-530 to 45a-534, inclusive, are repealed, effective April 29, 2008.
(P.A. 73-548, S. 4–8; P.A. 78-280, S. 2, 127; P.A. 80-476, S. 212; P.A. 93-189, S. 6; P.A. 97-140, S. 14; P.A. 08-6, S. 4.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-535. - Short title: Uniform Prudent Management of Institutional Funds Act.

Sections 45a-535 to 45a-535i, inclusive, may be cited as the “Uniform Prudent Management of Institutional Funds Act”.
(P.A. 07-91, S. 28.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-535a. - Definitions.

As used in sections 45a-535 to 45a-535i, inclusive, unless the context otherwise requires:
(1) “Charitable purpose” means the relief of poverty, the advancement of education or religion, the promotion of health, the promotion of governmental purposes and any other purpose the achievement of which is beneficial to the community;
(2) “Endowment fund” means an institutional fund or any part thereof not wholly expendable by the institution on a current basis under the terms of a gift instrument. The term does not include assets of an institution designated by the institution as an endowment fund for its own use;
(3) “Gift instrument” means a record or records, including an institutional solicitation, under which property is granted to, transferred to or held by an institution as an institutional fund;
(4) “Institution” means:
(A) A person, other than an individual, organized and operated exclusively for charitable purposes;
(B) A government or a governmental subdivision, agency or instrumentality to the extent that it holds funds exclusively for a charitable purpose; and
(C) A trust that had both charitable and noncharitable interests, after all noncharitable interests have terminated;
(5) “Institutional fund” means a fund held by an institution exclusively for charitable purposes or a fund held by a trustee for a charitable community trust. “Institutional fund” does not include:
(A) Program-related assets;
(B) A fund held for an institution by a trustee that is not an institution, other than a fund which is held for a charitable community trust; or
(C) A fund in which a beneficiary that is not an institution has an interest other than an interest that could arise upon violation or failure of the purposes of the fund;
(6) “Person” means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency or instrumentality or any other legal or commercial entity;
(7) “Program-related asset” means an asset held by an institution primarily to accomplish a charitable purpose of the institution and not primarily for appreciation or the production of income; and
(8) “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
(P.A. 07-91, S. 29; P.A. 08-6, S. 3; P.A. 10-32, S. 135.)
History: P.A. 08-6 redefined “institutional fund” in Subdiv. (5) by adding references to a fund held for a charitable community trust, effective April 29, 2008; P.A. 10-32 made technical changes in Subdiv. (5), effective May 10, 2010.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-535c. - Appropriation for expenditure or accumulation of endowment fund. Factors in making a determination to appropriate or accumulate. Rules of construction.

(a) Subject to the intent of a donor expressed in a gift instrument, an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines to be prudent for the uses, benefits, purposes and duration for which the endowment fund is established. Unless stated otherwise in a gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution. In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances and shall consider, if relevant, the following factors:
(1) The duration and preservation of the endowment fund;
(2) The purposes of the institution and the endowment fund;
(3) General economic conditions;
(4) The possible effect of inflation or deflation;
(5) The expected total return from income and the appreciation of investments;
(6) Other resources of the institution; and
(7) The investment policy of the institution.
(b) To limit the authority to appropriate for expenditure or accumulate under subsection (a) of this section, a gift instrument shall specifically state the limitation.
(c) Terms in a gift instrument designating a gift as an endowment or a direction or authorization in the gift instrument to use only “income”, “interest”, “dividends” or “rents, issues or profits”, or “to preserve the principal intact”, or similar words:
(1) Create an endowment fund of permanent duration unless other language in the gift instrument limits the duration or purpose of the fund; and
(2) Do not otherwise limit the authority to appropriate for expenditure or accumulate under subsection (a) of this section.
(P.A. 07-91, S. 31.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-535d. - Delegation of management and investment of institutional fund.

(a) Subject to any specific limitation set forth in a gift instrument or in law other than sections 45a-535 to 45a-535i, inclusive, an institution may delegate to an external agent the management and investment of an institutional fund to the extent that an institution could prudently delegate under the circumstances. An institution shall act in good faith, with the care that an ordinarily prudent person in a like position would exercise under similar circumstances, in:
(1) Selecting an agent;
(2) Establishing the scope and terms of the delegation, consistent with the purposes of the institution and the institutional fund; and
(3) Periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the institution to exercise reasonable care to comply with the scope and terms of the delegation.
(c) An institution that complies with subsection (a) of this section is not liable for the decisions or actions of an agent to which the function was delegated.
(d) By accepting delegation of a management or investment function from an institution that is subject to the laws of this state, an agent submits to the jurisdiction of the courts of this state in all proceedings arising from or related to the delegation or the performance of the delegated function.
(e) An institution may delegate management and investment functions to its committees, officers or employees as authorized by law other than sections 45a-535 to 45a-535i, inclusive.
(P.A. 07-91, S. 32.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-535e. - Release or modification of restrictions contained in gift instrument on management, investment or purpose of institutional fund.

(a) With the donor's consent in a record, an institution may release or modify, in whole or in part, a restriction contained in a gift instrument on the management, investment or purpose of an institutional fund. A release or modification may not allow a fund to be used for a purpose other than a charitable purpose of the institution.
(b) If a restriction contained in a gift instrument on the management or investment of an institutional fund becomes impracticable or wasteful or impairs the management or investment of the fund or if because of circumstances not anticipated by the donor a modification of a restriction will further the purposes of the fund, a court, upon application of the institution, may modify the restriction. The institution shall notify the Attorney General, who shall be given an opportunity to be heard. To the extent practicable, any modification shall be made in accordance with the donor's probable intention.
(c) If a particular charitable purpose or a restriction contained in a gift instrument on the use of an institutional fund becomes unlawful, impracticable, impossible to achieve or wasteful, a court, upon application of an institution, may modify the purpose of the fund or the restriction on the use of the fund in a manner consistent with the charitable purposes expressed in the gift instrument. The institution shall notify the Attorney General, who shall be given an opportunity to be heard.
(d) Nothing in this section shall be construed as amending or altering existing standards in the law for approximation, cy pres or equitable deviation actions.
(P.A. 07-91, S. 33; P.A. 09-102, S. 4.)
History: P.A. 09-102 amended Subsec. (d) by substituting “law” for “general statutes”, effective July 1, 2009.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-535f. - Determination of compliance with act.

Compliance with sections 45a-535 to 45a-535i, inclusive, is determined in light of the facts and circumstances existing at the time a decision is made or an action is taken.
(P.A. 07-91, S. 34.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-535g. - Application to existing institutional funds.

Sections 45a-535 to 45a-535i, inclusive, apply to institutional funds existing on or established after October 1, 2007. As applied to institutional funds existing on October 1, 2007, sections 45a-535 to 45a-535i, inclusive, govern only decisions made or actions taken after such date.
(P.A. 07-91, S. 35.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-535h. - Relation of act to Electronic Signatures in Global and National Commerce Act.

Sections 45a-535 to 45a-535i, inclusive, modify, limit and supersede the Electronic Signatures in Global and National Commerce Act, 15 USC Section 7001 et seq., but do not modify, limit or supersede Section 101 of said act, 15 USC Section 7001(a), or authorize electronic delivery of any of the notices described in Section 103 of said act, 15 USC Section 7003(b).
(P.A. 07-91, S. 36.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-535i. - Uniformity of application and construction of act.

In applying and construing sections 45a-535 to 45a-535h, inclusive, consideration shall be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
(P.A. 07-91, S. 37.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-540. (Formerly Secs. 45-100a to 45-100c). - Powers in trust instruments act.

Sections 45-100a to 45-100c, inclusive, are repealed, except said sections shall continue in effect insofar as any instrument executed prior to January 1, 1970, incorporated said sections.
(1967, P.A. 753, S. 1–3; 1969, P.A. 827, S. 5; P.A. 80-476, S. 208–210.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-541. - Short title: Connecticut Uniform Prudent Investor Act.

Sections 45a-541 to 45a-541l, inclusive, may be cited as the “Connecticut Uniform Prudent Investor Act”.
(P.A. 97-140, S. 1.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-541a. - Prudent investor rule.

(a) Except as provided in subsection (b) of this section, a trustee who invests and manages trust assets owes a duty to the beneficiaries of the trust to comply with the prudent investor rule, as set forth in sections 45a-541 to 45a-541l, inclusive.
(b) The prudent investor rule is a default rule that may be expanded, restricted, eliminated or otherwise altered by provisions of the trust. A trustee is not liable to a beneficiary to the extent that the trustee acted in reasonable reliance on provisions of the trust.
(P.A. 97-140, S. 2.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-541b. - Standard of care. Portfolio strategy. Risk and return objectives.

(a) A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill and caution.
(b) A trustee's investment and management decisions respecting individual assets shall be evaluated not in isolation, but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.
(c) Among circumstances that a trustee shall consider in investing and managing trust assets are such of the following as are relevant to the trust or its beneficiaries: (1) General economic conditions; (2) the possible effect of inflation or deflation; (3) the expected tax consequences of investment decisions, strategies and distributions; (4) the role that each investment or course of action plays within the overall trust portfolio, which may include financial assets, interests in closely held enterprises, tangible and intangible personal property and real property; (5) the expected total return from income and the appreciation of capital; (6) related trusts and other income and resources of the beneficiaries; (7) needs for liquidity, for regularity of income and for preservation or appreciation of capital; (8) an asset's special relationship or special value, if any, to the purposes of the trust or to one or more of the beneficiaries; (9) the size of the portfolio; and (10) the nature and estimated duration of the trust.
(d) A trustee shall take reasonable steps to verify facts relevant to the investment and management of trust assets.
(e) Subject to the standard of sections 45a-541 to 45a-541
l
, inclusive, a trustee may invest in any kind of property or type of investment.
(f) A trustee who has special skills or expertise, or is named trustee in reliance upon the trustee's representation that the trustee has special skills or expertise, has a duty to use those special skills or expertise.
(P.A. 97-140, S. 3.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-541d. - Duties at inception of trusteeship.

Within a reasonable time after accepting a trusteeship or receiving trust assets, a trustee shall review the trust assets and make and implement decisions concerning the retention and disposition of assets, in order to bring the trust portfolio into compliance with the purposes, terms, distribution requirements and other circumstances of the trust, and with the requirements of sections 45a-541 to 45a-541l, inclusive.
(P.A. 97-140, S. 5.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-541f. - Impartiality.

If a trust has two or more beneficiaries, the trustee shall act impartially in investing and managing the trust assets, taking into account any differing interests of the beneficiaries.
(P.A. 97-140, S. 7.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-541h. - Reviewing compliance.

The prudent investor rule expresses a standard of conduct, not outcome. Compliance with the prudent investor rule is determined in light of the facts and circumstances existing at the time of a trustee's decision or action.
(P.A. 97-140, S. 9.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-541i. - Delegation of investment and management functions.

(a) A trustee may delegate investment and management functions that a prudent trustee of comparable skills could properly delegate under the circumstances. The trustee shall exercise reasonable care, skill and caution in: (1) Selecting an agent; (2) establishing the scope and terms of the delegation, consistent with the purposes and terms of the trust; and (3) periodically reviewing the agent's actions in order to monitor the agent's performance and compliance with the scope and terms of the delegation.
(b) In performing a delegated function, an agent owes a duty to the trustee and to the trust to exercise reasonable care to comply with the scope and terms of the delegation and to exercise the delegated function with reasonable care, skill and caution. An attempted exoneration of the agent from liability for failure to meet such a duty is contrary to public policy and void.
(c) A trustee who complies with the requirements of subsection (a) of this section is not liable to the beneficiaries or to the trust for the decisions or actions of the agent to whom the function was delegated.
(d) By accepting the delegation of a trust function from the trustee of a trust that is subject to the law of this state, an agent submits to the jurisdiction of the courts of this state and can be held liable by the courts of this state for any breach of duty arising out of the delegation agreement or the terms of sections 45a-541 to 45a-541
l
, inclusive.
(P.A. 97-140, S. 10.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-541j. - Language invoking standards of act.

The following terms or comparable language in a trust instrument, unless otherwise limited or modified by the instrument, authorizes any investment or strategy permitted under sections 45a-541 to 45a-541l, inclusive: “Investments permissible by law for investment of trust funds”, “legal investments”, “authorized investments”, “using the judgment and care under the circumstances then prevailing that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, not in regard to speculation but in regard to the permanent disposition of their funds, considering the probable income as well as the probable safety of their capital”, “prudent man rule”, “prudent trustee rule”, “prudent person rule”, and “prudent investor rule”.
(P.A. 97-140, S. 11.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-541k. - Uniformity of application and construction.

Sections 45a-541 to 45a-541l, inclusive, shall be applied and construed to effectuate their general purpose to make uniform the law with respect to the subject of said sections among the states enacting them.
(P.A. 97-140, S. 12.)
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-541l. - Applicability.

Sections 45a-541 to 45a-541l, inclusive, apply to trusts existing on and created after October 1, 1997. As applied to trusts existing on October 1, 1997, sections 45a-541 to 45a-541l, inclusive, govern only decisions or actions occurring after that date.
(P.A. 97-140, S. 13; P.A. 08-6, S. 2.)
History: P.A. 08-6 made technical changes, effective April 29, 2008.
2023 Connecticut General Statutes › Title 45a - Probate Courts and Procedure › Chapter 802c - Trusts › Section 45a-542. - Short title: Connecticut Principal and Income Act.

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