Sec. 45a-234. (Formerly Sec. 45-100e). Powers.
Sec. 45a-234. (Formerly Sec. 45-100e). Powers. Powers. -The following powers
may be incorporated by reference as provided in sections 45a-233 and 45a-236:
(1) Retain Original Property. -To retain for such time as the fiduciary shall deem
advisable any property, real, personal or mixed, which the fiduciary may receive, even
though the retention of such property by reason of its character, amount, proportion to
the total estate or otherwise would not be appropriate for the fiduciary apart from this
provision. The fiduciary shall not retain non-income-producing property in a trust intended to qualify for the marital deduction without the consent of the life beneficiary
of said trust or his legal representative, including his guardian or conservator.
(2) Sell, Mortgage or Exchange Property. -To sell, exchange, alter, assign, transfer,
grant options to buy, sign real estate listing agreements; to convey, pledge, hypothecate;
and to mortgage, lease and sublease, even beyond the period of the estate or any trust;
to partition or otherwise dispose of any property or interest therein; to do any of such
acts without an order of any court, at public or private sale or otherwise, upon such
terms and conditions, including credit, and for such consideration as the fiduciary shall
deem advisable; to transfer and convey the property or any interest therein, in fee simple
absolute or otherwise free of all trusts. The receipts of the fiduciary for moneys or
things paid or delivered shall be effective discharges therefrom to the persons paying
or delivering the same and no one either dealing with the fiduciary or from whom the
fiduciary shall receive any money, property or other credit shall be required to see to
the application thereof or shall be under any duty to follow the proceeds or other consideration received by the fiduciary from such sale or exchange. No one dealing with the
fiduciary, or with any real, personal or mixed property which is or was estate or trust
property, shall be bound to ascertain or inquire as to the existence or occurrence of any
event or purpose in or for which a sale is herein authorized or directed or otherwise as
to the purpose or regularity of any acts of the fiduciary purporting to be done in pursuance
of any other provisions or powers herein incorporated or granted.
(3) Invest and Reinvest. -To invest and reinvest, as the fiduciary shall deem advisable, in stocks of any class, bonds, debentures, notes, mortgages or other securities as
well as in investment trusts, mutual funds and common trust funds, to open accounts in
any type of commercial or savings bank, savings and loan association, credit union or
similar organization or company, whether within or without the state of Connecticut
and to acquire by lease or purchase any interest in real property or real estate investment
trusts whether such investment is in or outside the state of Connecticut or the United
States and even though such investment shall not be of the character approved by applicable law but for this provision. Notwithstanding any other provisions to the contrary,
neither a trustee of an irrevocable trust, intended to qualify for the federal gift tax exclusion as a gift of a present interest under Section 2503(b) or 2503(c) of the Federal Internal
Revenue Code of 1986, or any subsequent corresponding internal revenue code of the
United States, as from time to time amended, nor the trustee of a trust providing for
payment of all income therefrom to the life beneficiary, including a QTIP trust, may
under any circumstances invest or reinvest in unproductive, underproductive or non-income-producing property, or acquire any life insurance, endowments or annuities
unless explicitly so authorized in the trust instrument.
(4) Invest Without Diversification. -To make investments which cause a greater
proportion of the total property held by the fiduciary to be invested in investments of one
kind than would be considered appropriate for the fiduciary apart from this provision.
(5) Exercise Stock Options. -To exercise any stock options owned by the testator
or settlor at his death or acquired by or held in any trust, to borrow money and pledge
any assets, including stock acquired by the exercise thereof, to obtain funds for the
exercise thereof, to retain any stock purchased by the exercise of such options for such
time as the fiduciary deems advisable, and to exercise all other powers in respect of
such stock as though such stock formed a part of the estate at the time of death or a part
of any trust.
(6) Pay Taxes and Expenses. -To pay taxes; to pay calls, assessments and any other
sums chargeable or accruing against or on account of shares of stock, debentures or
other corporate securities in the hands of a fiduciary, whenever such payment may be
legally enforceable against the fiduciary or any property of the estate or trust, or if the
fiduciary deems payment expedient and for the best interests of the estate or trust; to
pay for repairs and other expenses incurred in the management, collection, care, administration and protection of the trust or estate including fiduciary compensation and attorneys' fees.
(7) Receive Property. -To receive any property, real or personal, from any source
and administer such property as a portion of any appropriate trust or estate under the
management of the fiduciary. The fiduciary, in its sole discretion, and at the expense
of the trust or estate, may inspect, investigate, cause to be inspected or cause to be
investigated, property that the fiduciary has been asked to hold or that would in any way
be an addition to the estate or trust, or property owned or operated by an entity in which
the fiduciary has been asked to hold an interest, for the purpose of determining the
potential application of any federal, state, local or foreign environmental law, rule or
regulation to such property. The taking of any action under this subdivision is not evidence that the fiduciary has accepted any addition to the estate or trust.
(8) Borrow Money. -To borrow money and to assume indebtedness for such periods
of time and upon such terms and conditions as to rates, maturities, renewals, and security
as the fiduciary shall deem advisable, including the powers of a corporate fiduciary
to borrow from its own banking department, for the purpose of paying debts, taxes,
administration expenses, or other charges against the estate or any trust, or any part
thereof, and to mortgage, pledge or otherwise encumber such portion of the estate or
any trust as may be required to secure such loan or loans, and to renew existing loans
either as maker or endorser.
(9) Vote Shares. -To vote shares of stock owned by the estate or owned by any trust
at stockholders' meetings in person or by special, limited, or general proxy, with or
without power of substitution.
(10) Register in Name of Nominee. -To hold any investment in the name of a nominee or in any form in which title will pass by delivery, but the fiduciary shall be liable
for any act of the nominee in connection with the investment so held. Any corporation
or its transfer agent may presume conclusively that the nominee is the actual owner of
securities submitted for transfer.
(11) Use of Private Nominees. -To form a general or limited partnership or partnerships under any name or names of the fiduciary's selection for the purpose of taking
and holding title to all or any of the assets comprising the estate or trust property and
for becoming the named beneficiary of any or all of the insurance policies therein;
said partnership or partnerships shall have the power to deposit, withdraw, sell, loan,
mortgage, lease, assign, convey, exchange, transfer or deal with said estate or trust
property in all ways permitted to the fiduciary and to take any such action over the
signature of only one partner or of the partnership itself; and any broker, bank, savings
bank, savings and loan association, and any corporation or its transfer agent or registrar
may presume conclusively that said partnership or partnerships are the actual owners
of the bank deposits, savings and loan shares and securities registered in their names
and submitted for transfer or reregistration.
(12) Take and Exercise Options, Rights and Privileges. -To take options for acquisition of property, to exercise all options, rights, and privileges to convert stocks, bonds,
debentures, notes, mortgages, or other property into other stocks, bonds, debentures,
notes, mortgages, or other property; to subscribe for other or additional stocks, bonds,
debentures, notes, mortgages, or other property; and to hold such stocks, bonds, debentures, notes, mortgages, or other property so acquired as investments of the estate or
trust so long as the fiduciary shall deem advisable.
(13) Participate in Reorganizations. -To unite with other owners of property similar
to any which may be held at any time in the decedent's estate or in any trusts in carrying
out any plan for the consolidation or merger, dissolution or liquidation, foreclosure, lease
or sale of the property; incorporation or reincorporation, acquisition, recapitalization,
reorganization or readjustment of the capital or financial structure of any corporation,
company or association the securities of which may form any portion of an estate or
trust; to become and serve as a member of a stockholders' or bondholders' protective
committee; to deposit securities in accordance with any plan agreed upon; to pay any
assessments, expenses, or sums of money that may be required for the protection or
furtherance of the interest of the distributees of an estate or beneficiaries of any trust
with reference to any such plan; and to receive as investments of any estate or any trust
any securities issued as a result of the execution of such plan.
(14) Renew and Extend Obligations. -To continue any obligation, whether secured
or unsecured, upon and after maturity with a renewal or extension upon such terms as
the fiduciary shall deem advisable, without regard to the value of the security, if any,
at the time of such continuance, even though such continuance may extend beyond the
period of the estate or of any trust.
(15) Foreclose and Bid in. -To foreclose, as an incident to the collection of any
bond, note or other obligation, any mortgage, deed of trust, or other lien securing such
bond, note or other obligation, and to bid in the property at such foreclosure sale, or to
acquire the property by deed from the mortgagor or obligor without foreclosure; and to
retain the property so bid in or taken over without foreclosure.
(16) Insure. -To carry such insurance coverage, including but not limited to public
liability, fire, rent, title or casualty insurance for such hazards and in such amounts,
either in stock companies or in mutual companies, as the fiduciary shall deem advisable.
A fiduciary or a fiduciary's employee who is a director of any corporation, more than
nineteen per cent of whose stock is held by the estate or any trust, may use estate or
trust assets to purchase and pay premiums on insurance to indemnify himself from
liability resulting from acting with conflicting interests and from other acts in his capacity as a director.
(17) Collect. -To collect, receive and give receipts for rents, issues, profits, and
income of an estate or trust.
(18) Litigate, Compromise or Abandon. -To compromise, adjust, arbitrate, sue on
or defend, abandon, or otherwise deal with and settle claims in favor of or against the
estate or trust as the fiduciary shall deem advisable, and the fiduciary's decision shall
be conclusive between the fiduciary and the beneficiaries of the estate or trust in the
absence of fraud, bad faith or gross negligence of the fiduciary. No beneficiary serving
as a cofiduciary and no settlor serving as a fiduciary or cofiduciary may participate in
any decision as to claims between him and the estate or trust. Any claim by a settlor or
beneficiary serving as a cofiduciary shall be determined only by the other cofiduciary.
(19) Employ and Compensate Agents, etc. -To employ and compensate persons
deemed by the fiduciary needful to advise or assist in the proper settlement of the estate
or administration of any trust including, but not limited to: Servants, agents, accountants,
brokers, attorneys-at-law, attorneys-in-fact, real estate managers, rental agents, realtors,
appraisers, and investment counsel, custodians and other professional advisors as reasonably may be required or desired in managing, protecting and investing the estate or
any trusts without liability for any neglect, omission, misconduct, or default of such
person provided such person was selected and retained with due care on the part of the
fiduciary. If investment counsel is selected, which at the time of selection has a reputation
in its community for competence and fair dealing, its selection and retention shall be
considered as having been made with due care, provided the fiduciary continues to
retain such counsel only so long as such counsel maintains said reputation. Under said
circumstances, the fiduciary shall have no investment responsibility whatever and may
act without independent investigation upon the recommendations of any such person,
without liability for any neglect, omission, misconduct, or default of such person.
(20) Acquire and Hold Property of Two or More Trusts Undivided. -To acquire,
receive, hold and retain the principal of several trusts created by a single instrument
undivided until division shall become necessary in order to make a distribution; to hold,
manage, invest, reinvest, and account for the several shares or parts of shares by appropriate entries in the fiduciary's books of account, and to allocate to each share or part
of share its proportionate part of all receipts and expenses; provided, that the provisions
of this subdivision shall not defer the vesting in possession of any share or part of share
of the estate or trust.
(21) Distribute in Cash or Kind. -To make distribution of assets of the estate or
trust in kind or in cash, or partially in kind and partially in cash, in divided or undivided
interests, provided shares may be composed differently and specific assets may be allocated to particular distributions; to make such distribution either upon final distribution
or during one or more preliminary distributions, at the then current values, as the fiduciary finds to be most practicable and for the best interests of the distributees; and to
make reasonable determinations of said values for the purpose of making distribution
if there is more than one distributee thereof, which determination shall be binding upon
the distributees, provided no settlor serving as a fiduciary of an irrevocable trust and no
beneficiary serving as a fiduciary of any trust shall have such power.
(22) Pay to or for Minors or Incompetents. -To make payments in money or in
property, to or for a minor or incompetent in any one or more of the following ways:
(A) To such minor or incompetent directly, if the fiduciary in its sole and absolute
discretion deems such payment advisable; (B) to apply directly in payment for the support, maintenance, education, and medical, surgical, hospital, or other institutional care
of such minor or incompetent; (C) to the legal or natural guardian of such minor or
conservator of such incompetent; (D) to any other person, whether or not appointed
guardian of the person or conservator by any court, who shall, in fact have the care and
custody of the person of such minor or incompetent. The fiduciary shall not be under
any duty to see to the application of the payments so made and the receipt by such person
shall be full acquittance to the fiduciary.
(23) Determine Income and Principal Questions. -To determine in accordance with
applicable law, where not otherwise provided by Connecticut's Principal and Income
Act, all questions with respect to the manner in which expenses and charges, including
the fiduciary's compensation as such, are to be borne and receipts are to be credited as
between principal and income.
(24) Capital Gain from Mutual Funds. -The fiduciary is directed to allocate to principal all distributions representing capital gains received from the sale of securities held
by regulated investment companies, real estate investment trusts or mutual funds owned
by the trust.
(25) Manage Real Property. -(A) To improve, manage, protect, develop, acquire
and make additions to, exchange, and abandon any real property or any interest therein;
(B) to dedicate to public use or, where legally permissible, to withdraw from such dedication, parks, streets, highways, or alleys; (C) to subdivide or resubdivide any real property;
(D) to borrow money for the purposes authorized by this subdivision for such periods
of time and upon such terms and conditions as to rates, maturities and renewals as the
fiduciary shall deem advisable and to mortgage or otherwise encumber any such property
or part thereof, whether in possession or reversion; (E) to lease or sublease any such
property or part thereof to commence at the present or in the future, upon such terms
and conditions, including options to renew or purchase, and for such period or periods
of time as the fiduciary deems advisable, although such period or periods may extend
beyond the duration of the trust or the administration of the estate involved; (F) to make
gravel, sand, oil, gas and other mineral leases, subleases, contracts, licenses, conveyances or grants of every nature and kind which are lawful in the jurisdiction in which
such property lies or to employ an ancillary fiduciary or fiduciaries so to act; (G) to
manage and improve timber and forests on such property, to sell the timber and forest
products, and to make grants, leases, and contracts with respect thereto; (H) to make,
modify, renew or extend leases and subleases as lessor or lessee; (I) to employ agents
to rent and collect rents; (J) to grant and create easements and release, convey, or assign
any right, title, or interest with respect to any easement on real property or part thereof
and enter into party wall agreements; (K) to erect, make repairs, replacements or improvements, structural or otherwise, or to renovate any building or other improvement
on real property, and to alter, raze, remove or demolish any building or other improvement in whole or part; (L) to survey, partition, and adjust boundaries; and to make plats
of any real property; and (M) to deal with any such property and every part thereof in
all other ways and for such other purposes or considerations as would be lawful for any
person owning the same.
(26) Deal with Other Trusts. -In dealing with one or more other trusts, the fiduciary
may sell property, real, personal or mixed to, or exchange property with, the trustee of
any trust which the testator or the settlor or his spouse or any child of his has created,
for such estates and upon such terms and conditions as to sale price, terms of payment,
and security as the fiduciary shall deem advisable, and no fiduciary shall have any duty
to follow the proceeds of any such sale, provided a fiduciary who is the settlor of an
irrevocable trust or a fiduciary who is a spouse or child of the settlor or testator, whether
or not the trust is irrevocable, shall not have such power, nor shall a fiduciary who is
also a beneficiary of another trust have any such power to deal with the trust of which
he is beneficiary.
(27) Make Advances. -In its sole and absolute discretion and without in any way
being required so to do, to advance money for the protection of the trust or estate, and
for all expenses, losses and liabilities sustained in the administration of the trust or estate
or because of the holding or ownerships of any trust or estate assets, for which advances
and any interest thereon the fiduciary shall have a lien on the assets of the trust or estate
as against a beneficiary, and in its sole and absolute discretion and without in any way
being required so to do, to advance, without provision for reimbursement, cash to the
executor of the will or administrator of the estate of the testator or settlor or of his spouse
if there are insufficient liquid assets to pay debts, taxes or administration expenses of
the decedent, or of his deceased spouse.
(28) Maintain Reserves. -To maintain reasonable reserves for depreciation, depletion, other than percentage depletion, and for amortization, and obsolescence.
(29) Make Contracts and Execute Instruments; No Duty of Inquiry. -To make contracts and to execute instruments, under seal or otherwise, as may be necessary in the
exercise of the powers herein granted. No party dealing with a fiduciary need inquire
as to the existence or proper exercise of any power of said fiduciary, whether said power
is granted directly or incorporated by reference.
(30) Perform Decedent's Executory Contracts. -The fiduciary may in its discretion,
complete performance of the decedent's valid executory contracts which, at the time of
his death, had not been fully performed.
(31) Use of Property by Distributee. -During the administration of the testator's
estate, the fiduciary shall have the discretion to permit any beneficiary to have the use,
possession, and enjoyment, without charge, of any real estate or tangible personal property devised, bequeathed or ultimately distributable to said person, so long as he lives,
and if he dies before his right to said property becomes absolute or before said property
is distributed to him, neither he nor his estate shall be held liable for any loss, destruction,
damage, depreciation or waste of said property except through his fault or neglect. Neither the existence nor exercise of this power shall be deemed a constructive or actual
distribution of the property to which it relates.
(32) Continue Business. -To the extent and upon such terms and conditions and
for such periods of time as the fiduciary shall deem necessary or advisable, to continue
or participate in the operation of any business or other enterprise, whatever its form
or organization, including but not limited to the power: (A) To effect incorporation,
dissolution, merger, consolidation or sale of all or substantially all of the assets, either
for cash or in exchange for stock or other securities, or to make other changes in the
form of the organization of the business or enterprise, and to diminish, enlarge or change
the scope of nature or nature of any business; (B) to dispose of any interest therein or
acquire the interest of others therein; (C) to contribute thereto or invest therein additional
capital or to lend money thereto, in any such case upon such terms and conditions as
the fiduciary shall approve from time to time except that a settlor of an irrevocable trust
who is serving as a fiduciary thereof shall not have this power; (D) to determine whether
the liabilities incurred in the conduct of the business are to be chargeable solely to the
part of the estate or trust set aside for use in the business or to the estate or trust as a whole,
but such allocation must be done in accordance with applicable law; (E) to control, direct
and manage the business, delegate all or any part of the fiduciary's power to supervise
and operate to such person or persons as the fiduciary may select, including any associate,
partner, officer or employee of the business; (F) to hire and discharge officers and employees, to fix their compensation and define their duties; and to employ, compensate
and discharge agents, attorneys, consultants, accountants and such other representatives
as the fiduciary may deem appropriate, including the right to employ any beneficiary,
or individual fiduciary, in any of the foregoing capacities; (G) to pledge other assets of
the estate or trust as security for loans made to such business; (H) to retain in the business
such amount of the net earnings for working capital and other purposes of the business
as the fiduciary may deem advisable in conformity with sound business practice, provided such retention does not impair any right of a beneficiary to receive all income
from his share of any trust; (I) to purchase, process and sell merchandise of every kind
and description; (J) to purchase and sell machinery and equipment, furniture and fixtures
and supplies of all kinds; (K) to sell or liquidate all or any part of any business at such
time and price and upon such terms and conditions, including credit, as the fiduciary
may determine, including a sale to any partner, officer or employee of the business or
to any individual fiduciary as beneficiary hereunder, provided any such sale shall be
for adequate and full consideration and no such sale shall be made to an individual
fiduciary who is also a beneficiary thereunder; (L) to invest other estate or trust funds
in such business; and to loan funds from the trust to such business; and (M) in all cases
in which the fiduciary is required to furnish statements to beneficiaries or to file accounts
in any court or in any other public office, it shall not be necessary to itemize business
receipts and disbursements and distributions of property but it shall be sufficient for the
fiduciary to show in the account a single figure or consolidation of figures, and the
fiduciary shall be permitted to account for money and property received from the business and any payments made to the business in lump sum without itemization.
(33) Appoint Ancillary Fiduciaries. -The fiduciary may itself act or it may select
one or more persons or corporations to act as an ancillary fiduciary or fiduciaries and,
to the extent permitted by applicable law, all of the powers held by the domiciliary
fiduciary are hereby granted to the ancillary fiduciary or fiduciaries and all costs of
ancillary administration may be paid from either the domiciliary estate or trust or the
ancillary estate or trust, as the fiduciary may decide in its sole discretion.
(34) Postpone Distribution and Accounting. -To postpone distribution and accounting with respect to any trust for a year from the date of the termination of the trust, if
in the judgment of the fiduciary such postponement shall be necessary or advisable.
(35) (A) Alternate Valuation Date. -The fiduciary may elect to value the estate for
tax purposes at the values of its assets on the date of decedent's death or at those values
on an estate tax valuation date other than the date of the decedent's death, whether or
not such election increases or decreases the federal estate tax. No adjustments shall be
required to be made between income and principal or between the property interests
passing to any beneficiaries which may be affected as a result of such election. (B)
Administration and Other Expenses. -To the extent permitted by law, the fiduciary
may elect to claim certain administration expenses, casualty losses, medical and other
expenses as deductions either on the income tax returns of the estate or of the decedent
or on the federal estate tax return or partly on each. The fiduciary shall elect to claim
from time to time such expenses as deductions on the particular tax returns which in
the fiduciary's opinion should result in the lowest total taxes being paid by the estate
and its beneficiaries, regardless of whether such expenses may be payable from the
income or principal of such estate, and the fiduciary is not required to make adjustments
between income or principal or between the property interests passing to any beneficiaries which may be affected on account of such election, except that (i) where one or
more residuary legatees of a will containing a so-called preresiduary marital deduction
formula provision is a charitable organization, as defined in Section 501(c) of the Federal
Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code
of the United States, as from time to time amended, or any corresponding provision
of applicable revenue laws, in effect at the date of the death of the testator of a will
incorporating sections 45a-233 to 45a-236, inclusive, and (ii) the fiduciary elects to treat
such expenses in whole or in part as income tax deductions with the result that federal
estate taxes paid from and chargeable to such principal are greater than if the contrary
election had been made, an amount equal to the difference in such estate taxes shall be
reimbursed to such principal from the income. (C) Joint Returns. -The fiduciary is
specifically authorized but not required to execute and file a joint income tax return
with the surviving spouse or his executor or administrator for the year of the decedent's
death and for any prior years. The fiduciary is also authorized but not required to execute
and file a gift tax return with the decedent's spouse or his executor or administrator, if
any gift tax return is required of either the decedent or his spouse for any quarter in the
year in which death occurs or for any quarter or year prior thereto. The fiduciary is
authorized but not required to consent to treat any gifts made by such decedent's spouse
as being made one-half by the decedent. The fiduciary may pay such income and gift
taxes as are chargeable to the decedent and, in its discretion, may pay the entire amount
of such taxes. The fiduciary shall incur no personal liability for any action taken by it
in good faith in accordance with any of the foregoing authorizations. (D) Installment
Payment of Estate Taxes. -The fiduciary is authorized in its discretion to elect to pay
all or any part of the federal estate tax on the estate in installments under the provisions
of Section 6166 of the Federal Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended, or
any corresponding provision of applicable revenue laws. (E) Request for Extension of
Time for Paying Estate Tax. -The fiduciary is authorized in its discretion to request an
extension of time for paying the federal estate tax, or any installment thereof on the
estate or any amounts determined as a deficiency thereon under the provisions of Section
6161 or 6163 of the Federal Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as from time to time amended. (F)
Election of Special Use Valuation. -The fiduciary is authorized to make all elections
with respect to valuations authorized by Section 2032A and related sections of the Federal Internal Revenue Code of 1986, or any subsequent corresponding internal revenue
code of the United States, as from time to time amended. (G) Pension and profit-sharing
plans. -To elect, either revocably or irrevocably, to receive death benefits and any other
sums payable with respect to any pension and profit-sharing plans in a lump sum, in
installments or as an annuity; to waive the benefit of any income averaging provisions
available for distributions from pension and profit-sharing plans; to elect a different
mode of distribution with respect to each applicable pension and profit-sharing plan.
The term, "pension and profit-sharing plan", includes any pension, profit-sharing, thrift,
stock purchase, or bonus plan as well as any so called "Keogh" plans and individual
retirement accounts. A decedent's spouse, if acting as a fiduciary, shall take no part in
the exercise of any election under any pension or profit-sharing plan. (H) In making
any of the elections authorized in subparagraph (D), (E), (F) or (G) of this subdivision, the
fiduciary is authorized to take all action it deems necessary to implement said elections
without incurring personal liability for any action taken or omitted by it in good faith
under said authorization.
(36) Surrender of Stock for Redemption. -The fiduciary is authorized in its discretion to surrender shares of stock in any corporation to the corporation issuing such
stock for redemption, accepting in payment for the redeemed shares cash, notes or other
property; and to vote the shares of stock of any corporation in favor of the redemption
of shares of its stock included in determining the gross estate of a decedent, either for
cash, notes or other property, including a redemption of such shares designed to provide
funds for the payment of the decedent's death taxes, funeral expenses and administration
expenses under the provisions of Section 303 of the Federal Internal Revenue Code of
1986, or any subsequent corresponding internal revenue code of the United States, as
from time to time amended, or any corresponding provision of applicable revenue laws
and the fiduciary shall incur no personal liability for any action taken or omitted by it
in good faith in accordance with any of the foregoing authorizations.
(37) Pooling Agreements and Voting Trusts. -To enter into any kind of pooling
agreements and voting trusts, even though such action may involve delegation of authority.
(38) Exculpation. -The fiduciary is hereby exonerated from any liability resulting
from its retention, sale or operation, whether due to losses, depreciation in value or
actions taken or omitted to be taken with respect to any business, farm or real estate
interests held in an estate or trust, nor shall the fiduciary be liable for any loss to or
depreciation of any other estate or trust property, so long as it is acting in good faith in
the management thereof and exercising reasonable care and diligence, but the fiduciary
is not exonerated from his own bad faith, wilful misconduct or gross negligence.
(39) Deal with Environmental Hazards. -To take any reasonable action and expend
any reasonable amount from the estate or trust that the fiduciary deems advisable for
the purposes of complying with or ensuring compliance with any federal, state, local or
foreign environmental law, rule or regulation, including, but not limited to, the following
powers:
(A) To conduct or authorize investigations, tests, audits, assessments or other actions or inquiries with respect to any real property for the purposes of determining
compliance with any federal, state, local or foreign environmental law, rule or regulation,
or any requirement or demand of any governmental authority;
(B) To review periodically or require the inspection of any and all property held in
the estate or trust for the purpose of determining compliance with any law, rule or
regulation affecting such property;
(C) To take any reasonable remedial action, to contain, clean up or remove any
actual or threatened environmental hazard, including a spill, release, discharge or contamination, to conduct site restoration work on any real property and to notify the appropriate federal, state or local authorities either on its own accord or in response to an
actual or threatened violation of any environmental law, rule or regulation;
(D) To institute legal proceedings or make claims or demands concerning environmental hazards, contamination or conditions, and to contest, pay, compromise, settle or
comply with legal proceedings, claims, demands, orders, penalties, fines and damages
brought by any federal, state, local or foreign governmental authorities concerned with
environmental compliance, or by a private litigant. The powers under this subdivision
shall apply with respect to any real property owned or operated by the decedent, the
estate or the trust, or in which the fiduciary, in its fiduciary capacity, has any actual or
potential ownership or management responsibility, including real property owned or
operated by any entity in which the fiduciary has an ownership or management interest.
The fiduciary is further authorized to reimburse itself or any other designated fiduciary,
that may have declined or been unable to serve for any reason, for reasonable expenses
incurred prior to its appointment for the purposes enumerated in this subdivision.
(1969, P.A. 827, S. 2; 1971, P.A. 556, S. 2-18; P.A. 80-410, S. 8-10, 21; 80-476, S. 205; P.A. 81-396, S. 2, 3; P.A.
83-520, S. 2-4; P.A. 89-211, S. 48; P.A. 91-185; P.A. 99-106, S. 1, 2; P.A. 00-196, S. 30.)
History: 1971 act rephrased provisions re receipt as discharge in Subdiv. (2), prohibited trustee of irrevocable trust
from investing in non-income-producing property, life insurance or annuities in Subdiv. (3), added reference to payment
of fiduciary compensation and attorneys' fees in Subdiv. (6), authorized the taking of options for acquisition of property
in Subdiv. (12), added reference to acquisition or recapitalization of capital or financial structure of corporation in Subdiv.
(13), added provision authorizing fiduciary or employee to use estate or trust assets to purchase indemnity insurance in
Subdiv. (16), applied provisions to "settlor serving as a fiduciary or cofiduciary" in Subdiv. (18), specified when investment
counsel is considered to have been selected "with due care" and effect of investment counsel's selection on fiduciary's
action's and liabilities in Subdiv. (19), applied provisions to "settlor serving as a fiduciary of an irrevocable trust" in
Subdiv. (21), authorized entrance into party wall agreements in Subdiv. (25)(J), clarified provisions of Subdiv. (26) by
rewording limitations on fiduciary's actions as proviso, added reference to "deceased spouse" in Subdiv. (27), deleted
provision in Subdiv. (28) which required that reserves be maintained whenever instrument provides for a charitable organization as a remainder beneficiary, made technical correction in Subdiv. (31), added exception re settlor of irrevocable trust
in Subdiv. (32)(C) and proviso limiting terms and conditions of sale in Subdiv. (32)(K), clarified provisions of Subdiv.
(35) and in Subdiv. (38) protected fiduciary from liability for loss or depreciation when it is acting in good faith; P.A. 80-410 amended prohibition in Subdiv. (3) to prohibit investments in unproductive and underproductive property, etc. and
applied prohibition to trustees of trusts which pay all income to a life beneficiary and in Subdiv. (35) added Subparas. (F)
and (G), the latter of which replaces previous similarly worded provisions in Subparas. (D) and (E); P.A. 80-476 made
technical correction in Subdiv. (27); P.A. 81-396 amended Subdiv. (35) by adding provision re pension and profit sharing
plans as Subpara. (G) and redesignating former Subpara. (G) as (H); P.A. 83-520 amended Subdiv. (2) by adding "sign
real estate listing agreements", amended Subdiv. (3) by adding authority to "open accounts in any type of commercial or
savings bank, savings and loan association, credit union or similar organization or company, whether within or without
the state of Connecticut", and added phrase "unless explicitly so authorized in the trust instrument" and made technical
changes in Subdiv. (35); P.A. 89-211 clarified references to the Internal Revenue Code of 1986; Sec. 45-100e transferred
to Sec. 45a-234 in 1991; P.A. 91-185 added Subdiv. (39) re power of fiduciary to deal with environmental hazards; P.A.
99-106 amended Subdiv. (7) by adding authority to receive, inspect and investigate property that fiduciary has been asked
to hold for purpose of determining potential application of environmental law and amended Subdiv. (39) by adding authority
to expend reasonable amount from estate to comply with environmental law, including investigation, inspection, remedial
action, and institution of, contest of or compliance with legal proceedings; P.A. 00-196 made a technical change in Subdiv.
(39)(D); (Revisor's note: In 2003 the words "appointment for the purposes enumerated in this subdivision." were reinstated
editorially by the Revisors at the end of Subdiv. (39)(D) to correct an omission from the 2001 revision).
Annotations to former section 45-100e:
Cited. 171 C. 372. Cited. 178 C. 42. Cited. 202 C. 57.
Subdiv. (2):
Cited. 215 C. 553.
Annotation to present section:
When acting in custodial capacity, custodian has fiduciary powers. 82 CA 277.