SB 397 Summary

• Adopts the Connecticut Uniform Trust Code effective October 1, 2018, establishing comprehensive rules for creation, administration, modification, and termination of express trusts, testamentary trusts, and charitable trusts.

• Establishes the Connecticut Uniform Directed Trust Act allowing trusts to grant powers of direction to trust directors who are subject to fiduciary duties comparable to trustees, with directed trustees obligated to comply with directors' lawful directions.

• Adopts the Connecticut Qualified Dispositions in Trust Act providing asset protection for irrevocable trusts with qualified out-of-state trustees, limiting creditor actions to four years for pre-disposition claims and four years for post-disposition claims, with exceptions for support obligations and tort claims.

• Repeals prior trust law sections and modifies perpetuities rules, eliminating the rule against perpetuities for trusts created after October 1, 2018, if the trustee has power to sell, mortgage, or lease property beyond the vesting period.

• Applies retroactively to all trusts created before, on, or after the effective date for most provisions, though certain rules apply only prospectively to trusts becoming irrevocable or settlors dying on or after October 1, 2018.