§ 45a-175 — (Formerly Sec. 45-267). Jurisdiction of accounts of fiduciaries. Appointment of auditor to examine accounts, when.

Connecticut § 45a-175

• Jurisdiction: Connecticut
• Title 45a: Probate Courts and Procedure
• Ch. 801b: Probate Court Procedures

Text

(a) Probate Courts shall have jurisdiction of the interim and final accounts of testamentary trustees, trustees appointed by the Probate Courts, conservators, guardians, executors and administrators, and, to the extent provided for in this section, shall have jurisdiction of accounts of the actions of trustees of inter vivos trusts and agents acting under powers of attorney. (b) A trustee or settlor of an inter vivos trust or the successor of the trustee, settlor or his or her legal representative may petition a Probate Court specified in section 45a-499p for submission to the jurisdiction of the court of an account for allowance of the trustee's actions under such trust. (c) (1) Any beneficiary of an inter vivos trust may petition a Probate Court specified in section 45a-499p for an accounting by the trustee or trustees. The court may, after hearing with notice to all interested parties, grant the petition and require an accounting for such periods of time as it determines are reasonable and necessary on finding that: (A) The beneficiary has an interest in the trust sufficient to entitle the beneficiary to an accounting, (B) cause has been shown that an accounting is necessary, and (C) the petition is not for the purpose of harassment. (2) As used in subdivision (1) of this subsection, “beneficiary” has the same meaning as provided in section 45a-499c . (d) Any of the persons specified in section 1-350o may petition the Probate Court for the district where the agent has any place of business or to the Probate Court for the district where the agent or the principal resides or, in the case of a deceased principal, to the Probate Court having jurisdiction over the estate of the principal or for the district in which the principal resided immediately prior to death, for an accounting or other relief as provided in section 1-350o . The court shall grant the petition if filed by the principal, agent, guardian, conservator or other fiduciary acting for the principal. The court may grant a petition filed by any other person specified in section 1-350o if it finds that (1) the petitioner has an interest sufficient to entitle the petitioner to the relief requested, (2) cause has been shown that such relief is necessary, and (3) the petition is not for the purpose of harassment. (e) The action to submit an accounting to the court, whether by an inter vivos trustee or agent acting under a power of attorney or whether pursuant to petition of another party, does not subject the trust or the power of attorney to the continuing jurisdiction of the Probate Court. (f) If the court finds such appointment is necessary and in the best interests of the estate, the court upon its own motion may appoint an auditor to be selected from a list provided by the Probate Court Administrator, to examine accounts over which the court has jurisdiction under this section, except those accounts on matters in which the fiduciary or cofiduciary is a corporation having trust powers. The list of auditors compiled by the Probate Court Administrator shall be comprised of individuals who hold a license from the State Board of Accountancy as a certified public accountant or public accountant. The Probate Court Administrator may from time to time establish hourly rates and allowable expenses for the compensation of auditors under this section. Costs of the audit may be charged to the fiduciary, any party in interest and the estate, in such proportion as the court shall direct if the court finds the charge to be equitable. Any such share may be paid from the fund established under section 45a-82 , subject to the approval of the Probate Court Administrator, if it is determined that the person obligated to pay the share is unable to pay or to charge such amount to the estate would cause undue hardship. (g) Upon the allowance of any such account, the court shall determine the rights of the fiduciaries or the agent under a power of attorney rendering the account and of the parties interested in the account, including the relief authorized under section 1-350p , subject to appeal as in other cases. The court shall cause notice of the hearing on the account to be given in such manner and to such parties as it directs. (h) In any action under this section, the Probate Court shall have, in addition to powers pursuant to this section, all the powers available to a judge of the Superior Court at law and in equity pertaining to matters under this section.

Legislative History

(1949 Rev., S. 7051; 1963, P.A. 480; 1969, P.A. 209, S. 1; P.A. 74-21, S. 1, 2; P.A. 77-489; P.A. 80-476, S. 86; P.A. 87-333, S. 1; P.A. 89-79; P.A. 96-202, S. 4; P.A. 97-90, S. 3; P.A. 98-52, S. 5; P.A. 14-122, S. 53; P.A. 15-240, S. 47; P.A. 16-40, S. 9; 16-193, S. 20; P.A. 17-136, S. 21; P.A. 18-45, S. 5; P.A. 19-137, S. 111.) History: 1963 act added provisions re trustee's application to submit an account of inter vivos trust and deleted reference to “annual, interim or final” accounts in provision re court's determination of fiduciaries' rights; 1969 act deleted initial reference to annual accounts of testamentary trustees; P.A. 74-21 specified that in cases involving deceased settlors, application is made to probate court having jurisdiction over settlor's estate; P.A. 77-489 added provisions re court's jurisdiction over accounts of actions of “attorneys-in-fact acting under powers of attorney created in accordance with section 45-69o”; P.A. 80-476 divided section into Subsecs. and rephrased provisions; P.A. 87-333 inserted new Subsec. (d) re appointment of auditor to examine accounts, promulgation of regulations re compilation of list of qualified auditors and charge of costs of audit to fiduciary, any party in interest and the estate as court deems equitable or payment of charge from fund under Sec. 45-4h if charge to person or estate would cause undue hardship, relettering as necessary; P.A. 89-79 inserted new Subsec. (c) permitting beneficiary of inter vivos trust to petition court having jurisdiction for an accounting by trustee and to permit court to grant such petition upon certain findings, relettering previously existing Subsecs. accordingly; Sec. 45-267 transferred to Sec. 45a-175 in 1991; P.A. 96-202 amended Subsecs. (a) and (d) by deleting phrase “created in accordance with section 45a-562” after “powers of attorney” and amended Subsec. (b) by adding “or the successor of the trustee or attorney-in-fact”; P.A. 97-90 added new Subsec. (g) re powers of Probate Court to include powers available to Superior Court re accountings; P.A. 98-52 amended Subsec. (b) by adding “or any one of them”, deleting “his or its principal” and inserted “any” and added “or for the district in which the settlor or grantor resided immediately prior to death” and amended Subsec. (c)(2) by adding “or in the case of a deceased settlor, resided in the district immediately prior to death”; P.A. 14-122 made technical changes in Subsec. (c); P.A. 15-240 amended Subsec. (a) by substituting “agents” for “attorneys-in-fact”, amended Subsec. (b) by deleting references to attorney-in-fact, grantor of power of attorney and grantor and by making technical changes, added new Subsec. (d) re authority of persons to make application to Probate Court for an accounting or other relief as provided in Sec. 1-350o, redesignated existing Subsec. (d) as Subsec. (e) and amended same by substituting “agent” for “attorney”, redesignated existing Subsecs. (e) to (g) as Subsecs. (f) to (h) and amended redesignated Subsec. (g) by substituting “agent under a power of attorney” for “attorney-in-fact” and by adding provision re relief under Sec. 1-350p, effective July 1, 2016; P.A. 16-40 changed effective date of P.A. 15-240, S. 47, from July 1, 2016, to October 1, 2016, effective May 27, 2016; P.A. 16-193 made technical changes in Subsecs. (a) to (d); P.A. 17-136 amended Subsec. (f) by deleting provision re Probate Court Administrator to promulgate regulations and adding provisions re auditors holding a license from State Board of Accountancy as a certified public accountant or public accountant and authority of Probate Court Administrator to establish hourly rates and allowable expenses for compensation of auditors, effective January 1, 2018; P.A. 18-45 amended Subsec. (a) by deleting reference to person appointed by Probate Courts to sell land of minors, deleting reference to trustees in insolvency, and making technical changes, and amended Subsecs. (b) and (d) by replacing references to making application with references to petition; P.A. 19-137 amended Subsecs. (b) and (c)(1) by replacing provisions re Probate Court to be petitioned with reference to Probate Court specified in section 45a-499p, further amended Subsec. (c)(1) by replacing “him or her” with “the beneficiary”, deleted former Subsec. (c)(2) re Probate Court jurisdiction to require accounting, redesignated Subsec. (c)(3) as Subsec. (c)(2) and amended same by redefining “beneficiary”, amended Subsec. (e) by replacing “shall” with “does”, and made technical changes in Subsecs. (d) and (f), effective January 1, 2020. Annotations to former section 45-267: Allowance of sum in gross improper. 4 D. 140; 30 C. 208; 34 C. 303. Decree allowing account not impeachable in suit on bond. 4 D. 221; 16 C. 318. Probate Court has jurisdiction of every item of account. 8 C. 90; 16 C. 318. Oath to account necessary. 8 C. 424. Executor may be made to account for avails of real estate. 13 C. 506. Every sum collected but not inventoried should appear in account. 21 C. 243. Ascertained future expenses may be allowed. Id., 556. Unnecessary expenses not allowable items. 27 C. 238. Claim against administrator for services rendered gives claimant no right of appeal from account disallowing such claim. 28 C. 415. Expenses of administration are personal charges against executors. Id., 550. Decree accepting account has all the elements of a final judgment. 31 C. 382, but see 32 C. 560; 36 C. 186. Previous errors may be corrected in final account. 35 C. 123; 49 C. 534. Account cannot be settled in Superior Court in suit on bond. 36 C. 295. Acceptance of final account as settlement of estate. 72 C. 555; 77 C. 374; 78 C. 517. Percentage charge by administrator; lump sum for “traveling expenses”. 73 C. 639. Correction of final account to include property omitted from inventory. 84 C. 659. Accounting in case of change of capacity from administrator to guardian. 80 C. 111. Account should be read in connection with inventory. Id., 620. Accounting in case of change of capacity from executor to trustee. 111 U.S. 566. What are administration expenses; taxes of other states and of United States are. 92 C. 506. Penalty tax of Connecticut. 96 C. 369. Jurisdiction of Probate Courts to pass upon accounts of testamentary trustee is not exclusive. 121 C. 388. Cited. 124 C. 422; 131 C. 482; 147 C. 482; 149 C. 348; 155 C. 417; 165 C. 207. Does not confer on Probate Court any jurisdiction over a final account filed by a surety on the probate bond of a fiduciary. Id., 211. Cited. 202 C. 57. Probate Court jurisdiction over inter vivos trust accounts not exclusive. 29 CS 275. Annotations to present section: Cited. 45 CA 490. Cited. 45 CS 368. Subsec. (b): Specific intent of the grantor of a power of attorney to change domicile is irrelevant to determination of whether the grantor “resided” in the Probate Court district; standing under Subsec. does not require an individual named as the only successor to an attorney-in-fact under a power of attorney to have assumed the role of acting attorney-in-fact; showing of cause is not required before Probate Court may order an attorney-in-fact to account for her actions under a power of attorney. 306 C. 37. Subsec. (c): Subdiv. (1) discussed. 247 C. 686. Subsec. (f): Probate Court may enforce rights under Subsec. by, inter alia, surcharging fiduciary for breach of trust. 261 C. 585. Subsec. (g): Subsec. legislatively overruled 153 C. 603; Probate Court has same power to order discovery in a proceeding on the interim account challenged by someone with standing that Superior Court would have in a case in which that same person brought a plenary action in Superior Court challenging the account based on the conduct of the fiduciaries. 129 CA 814.