Connecticut trust law has been overhauled by the adoption of its new Uniform Trust Code effective January 1, 2020. Part I of this two-part Article will highlight important changes for those who have created existing and as yet revocable trusts, and those serving as trustees.
Additionally, broad trustee powers in the Act will be automatically applicable to revocable trusts created prior to and after the Act’s effective date, unless the trust creator clearly states an intent to prohibit any powers not referenced in the trust document. It will be important for the person who created the trust to review these new powers for consistency.
There are mandatory notice rules that will apply to the trustees of all trusts except those that were irrevocable (cannot be changed) prior to 1/1/2020, for certain beneficiaries of a trust, unless the trust document provides for a “designated representative” to receive the notices on the beneficiary’s behalf.
Examples of the information that must be disclosed and when the beneficiary notice requirements apply include:
- The existence of the trust and a copy of the relevant portions of the trust
- Identity of the trustee and contact information
- A successor trustee’s acceptance of the trustee post
- A trust becomes irrevocable (example, when the creator of the trust dies)
- A trustee’s resignation
- The trustee must notify the beneficiary of the right to request an annual report
- The trust situs (state of administration) changes
Certain of the notice rules may be waived in the trust document. If you have a revocable trust or if you may in the future be serving as a trustee of a trust, you may wish to review the Connecticut Trust Code’s impact on your documents or trustee duties.
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– D. Jeanne Messick
Disclaimer: While this blog provides general information, it does not constitute legal advice. The best way to get guidance on your specific legal issue is to contact a lawyer. To schedule a meeting with an attorney, please call one of our lawyers at (860) 316-2741. The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship.