§ 45a-499nnn — Specific powers of trustee.

(a) Without limiting the authority conferred by section 45a-499mmm, and except as otherwise prohibited by law or by the terms of the trust instrument, a trustee may: (1) Collect trust property and accept or reject additions to the trust property from a settlor or any other person; (2) Acquire or sell property, for cash or on credit, at public or private sale; (3) Exchange, partition or otherwise change the character of trust property; (4) Deposit trust money in an account in a regulated financial service institution; (5) Borrow money, with or without security, and mortgage or pledge trust property for a period within or extending beyond the duration of the trust; (6) With respect to an interest in a proprietorship, partnership, limited liability company, business trust, corporation or other form of business or enterprise, continue the business or other enterprise and take any action that may be taken by shareholders, members or property owners, including merging, dissolving or otherwise changing the form of business organization or contributing additional capital; (7) With respect to stocks or other securities, exercise the rights of an absolute owner, including the right to (A) vote or give proxies to vote, with or without power of substitution, or enter into or continue a voting trust agreement; (B) hold a security in the name of a nominee or in other form without disclosure of the trust so that title may pass by delivery; (C) pay calls, assessments and other sums chargeable or accruing against the securities, and sell or exercise stock subscription or conversion rights; and (D) deposit the securities with a depositary or other regulated financial service institution; (8) With respect to an interest in real property, construct or make ordinary or extraordinary repairs to, alterations to or improvements in buildings or other structures, demolish improvements, raze existing or erect new party walls or buildings, subdivide or develop land, dedicate land to public use or grant public or private easements, and make or vacate plats and adjust boundaries; (9) Enter into a lease for any purpose as lessor or lessee, including a lease or other arrangement for exploration and removal of natural resources, with or without the option to purchase or renew, for a period within or extending beyond the duration of the trust; (10) Grant an option involving a sale, lease or other disposition of trust property or acquire an option for the acquisition of property, including an option exercisable beyond the duration of the trust, and exercise an option so acquired; (11) Insure the property of the trust against damage or loss and insure the trustee, the trustee's agents and beneficiaries against liability arising from the administration of the trust; (12) Abandon or decline to administer property of no value or of insufficient value to justify its collection or continued administration; (13) With respect to possible liability for violation of environmental law, (A) inspect or investigate property the trustee holds or has been asked to hold, or property owned or operated by an organization in which the trustee holds or has been asked to hold an interest, for the purpose of determining the application of environmental law with respect to the property; (B) take action to prevent, abate or otherwise remedy any actual or potential violation of any environmental law affecting property held directly or indirectly by the trustee, whether taken before or after the assertion of a claim or the initiation of governmental enforcement; (C) decline to accept property into trust or disclaim any power with respect to property that is or may be burdened with liability for violation of environmental law; (D) compromise claims against the trust which may be asserted for an alleged violation of environmental law; and (E) pay the expense of any inspection, review, abatement or remedial action to comply with environmental law; (14) Pay or contest a claim, settle a claim by or against the trust, and release, in whole or in part, a claim belonging to the trust; (15) Pay taxes, assessments, compensation of the trustee and of employees and agents of the trust, and other expenses incurred in the administration of the trust; (16) Exercise elections with respect to federal, state and local taxes; (17) Select a mode of payment under any employee benefit or retirement plan, annuity or life insurance payable to the trustee, exercise rights thereunder, including exercise of the right to indemnification for expenses and against liabilities, and take appropriate action to collect the proceeds; (18) Make loans out of trust property, including loans to a beneficiary on terms and conditions the trustee considers to be fair and reasonable under the circumstances, with the trustee having a lien on future distributions for repayment of such loans; (19) Pledge trust property to guarantee loans made by others to the beneficiary; (20) Appoint a trustee to act in another jurisdiction with respect to trust property located in the other jurisdiction, confer upon the appointed trustee all of the powers and duties of the appointing trustee, require the appointed trustee to furnish security and remove any trustee so appointed; (21) Pay an amount distributable to a beneficiary who is under a legal disability or who the trustee reasonably believes is incapacitated, by: (A) Paying it directly to the beneficiary or applying it for the beneficiary's benefit; (B) paying it to the beneficiary's conservator of the estate or guardian of the estate; (C) if the beneficiary does not have a conservator of the estate or guardian of the estate, paying it to an adult relative or other person having legal or physical care or custody of the beneficiary, to be expended on the beneficiary's behalf; or (D) managing it as a separate fund on the beneficiary's behalf, subject to the beneficiary's continuing right to withdraw the distribution; (22) On distribution of trust property or the division or termination of a trust, make distributions in divided or undivided interests, allocate particular assets in proportionate or disproportionate shares, value the trust property for such purposes and adjust for resulting differences in valuation; (23) Resolve a dispute concerning the interpretation of the trust or its administration by mediation, arbitration or other procedure for alternative dispute resolution; (24) Prosecute or defend an action, claim or judicial proceeding in any jurisdiction to protect trust property and the trustee in the performance of the trustee's duties; (25) Sign and deliver contracts and other instruments that are useful to achieve or facilitate the exercise of the trustee's powers; (26) On termination of the trust, exercise the powers appropriate to wind up administration of the trust and distribute the trust property to the persons entitled to it; and (27) Exercise all powers appropriate to achieve the proper investment, management, preservation and distribution of a digital asset held in the trust estate whether the trustee, the grantor or a third party is the original or a successor user of the digital asset. This subdivision shall be construed in accordance with the Connecticut Revised Uniform Fiduciary Access to Digital Assets Act, as said act is in effect from time to time during the administration of the trust. The custodian of each digital asset held in the trust, whether public or private, shall divulge to the trustee with respect to the asset: (A) Any electronically stored information; (B) the content of all electronic communications sent or received by the original and successor user; and (C) any record or other information stored by the custodian on a remote-computing service. (b) The powers in subsection (a) of this section do not apply to a charitable trust to the extent that their exercise would give the trustee the authority to deviate from a stated charitable purpose or violate a restricted gift. A trustee of a charitable trust and a person holding and administering an endowment fund or an institutional fund, both as defined in section 45a-535a , shall not mortgage, hypothecate, pledge, use as collateral or otherwise encumber any of the following assets of such charitable trust, endowment fund or institutional fund, if the source of the asset was a charitable gift: (1) Funds for which expenditures are restricted by the settlor for a purpose other than the general purposes of a charity or institution; and (2) the principal or corpus of a charitable trust or institutional fund for which such principal or corpus is restricted to investment or endowment purposes. (c) The provisions of this section apply to any trust whether established before, on or after January 1, 2020, except that no power is conferred by this section to any trust established before January 1, 2020, if the trust instrument reflects an intent to disallow the exercise of the power.

Legislative History

(P.A. 19-137, S. 66.) History: P.A. 19-137 effective January 1, 2020.