(a)A trustee shall administer trust assets solely in the interests of the beneficiaries consistent with the settlor's intent.
(b)Subject to the rights of persons dealing with or assisting the trustee as provided in section 45a-499yyy , a sale, encumbrance or other transaction involving the investment or management of trust property entered into by the trustee for the trustee's own personal account or which is otherwise affected by a conflict between the trustee's fiduciary and personal interests is voidable by a beneficiary affected by the transaction unless:
(1)The transaction was authorized by the terms of the trust;
(2)the transaction was approved by the court;
(3)the beneficiary did not commence a judicial proceeding within the time allowed by section 45a-499rrr ;
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(a) A trustee shall administer trust assets solely in the interests of the beneficiaries consistent with the settlor's intent. (b) Subject to the rights of persons dealing with or assisting the trustee as provided in section 45a-499yyy , a sale, encumbrance or other transaction involving the investment or management of trust property entered into by the trustee for the trustee's own personal account or which is otherwise affected by a conflict between the trustee's fiduciary and personal interests is voidable by a beneficiary affected by the transaction unless: (1) The transaction was authorized by the terms of the trust; (2) the transaction was approved by the court; (3) the beneficiary did not commence a judicial proceeding within the time allowed by section 45a-499rrr ; (4) the beneficiary consented to the trustee's conduct, ratified the transaction or released the trustee as provided in section 45a-499vvv ; or (5) the transaction involves a contract entered into or claim acquired by the trustee before the person became or contemplated becoming trustee. (c) A sale, encumbrance or other transaction involving the investment or management of trust property is presumed to be affected by a conflict between personal and fiduciary interests if it is entered into by the trustee with: (1) The trustee's spouse; (2) the trustee's descendants, sibling, parents or their spouses; (3) an agent or attorney of the trustee; or (4) a corporation or other person or enterprise in which the trustee, or a person that owns a significant interest in an entity that is acting as the trustee, has an interest that may affect the trustee's best judgment. (d) If a transaction between a trustee and a beneficiary which does not concern trust property but (1) which occurs during the existence of the trust or while the trustee retains significant influence over the beneficiary; and (2) from which the trustee obtains an advantage, the transaction is voidable by the beneficiary unless the trustee establishes that the transaction was fair to the beneficiary. (e) If a trustee engages in a transaction in the trustee's individual capacity and not concerning trust property and if the transaction concerns an opportunity properly belonging to the trust, the transaction is a conflict between the personal and fiduciary interests of the trustee. (f) If a transaction and any investment made pursuant to the transaction complies with the Connecticut Uniform Prudent Investor Act, sections 45a-541 to 45a-541 l , inclusive, is in the best interests of the beneficiaries and is not prohibited by the governing instrument, the following transactions are not presumed to be affected by a conflict of interest between a trustee's personal and fiduciary interests, provided: (1) An investment by a trustee in securities of an investment company or investment trust to which the trustee, or its affiliate, provides services in a capacity other than as trustee; (2) an investment by a trustee in an insurance contract purchased from an insurance agency is owned by, or affiliated with, the trustee or its affiliate; and (3) the placing of securities transactions by a trustee through a securities broker that is a part of the same company as the trustee is owned by the trustee or is affiliated with the trustee. (g) In voting shares of stock or in exercising powers of control over 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. If the trust is the sole owner of a corporation or other form of enterprise, the trustee shall elect or appoint directors or other managers who will manage the corporation or enterprise in the best interests of the beneficiaries. (h) The provisions of this section do not preclude the following transactions, if fair to the beneficiaries: (1) An agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee; (2) payment of reasonable compensation to the trustee; (3) a transaction between a trust and another trust, decedent's estate or conservatorship of which the trustee is a fiduciary or in which a beneficiary has an interest; (4) a deposit of trust money in a regulated financial service institution operated by the trustee; or (5) an advance by the trustee of money for the protection of the trust. (i) The court may appoint a special fiduciary to make a decision with respect to any proposed transaction that may violate the provisions of this section if entered into by the trustee.