Sec. 45a-235. (Formerly Sec. 45-100f). Additional powers.
Sec. 45a-235. (Formerly Sec. 45-100f). Additional powers. Additional Powers. -
Any one or more or all of the following additional powers or any portion thereof may
be incorporated by reference, as provided in section 45a-233(a) but only to the extent
they are individually referred to in such will or other instrument.
(1) Stock of Fiduciary. -To retain and invest and reinvest in and purchase any stock
or other securities issued by the fiduciary in its individual capacity, or by any parent
holding company of the fiduciary, including any stock dividends thereon and any securities issued in lieu thereof as the result of any recapitalization, reorganization, consolidation or merger. Furthermore the fiduciary may exercise or sell any rights, or exercise
part and sell part thereof, including rights to buy fractional shares, issued to it by reason
of its ownership of any such security; and may retain and hold any security so acquired
and vote and issue general or limited proxies to vote said stock.
(2) Buy Insurance and Annuities. -To retain and to purchase insurance contracts,
on the life of any beneficiary or of any person in whom a beneficiary has an insurable
interest, or annuity contracts for any beneficiary and to pay the premiums thereon out
of such beneficiary's portion of principal or income as the fiduciary, in its discretion,
shall determine.
(3) Invest in Partnerships, etc. -To retain, invest and reinvest in partnerships, joint
ventures, leases, real estate syndicates, small business investment companies and hedge
funds.
(4) Speculative Assets. -To retain, trade and speculate in any real, personal or mixed
property as the fiduciary shall deem advisable, wherever situated, including but not
limited to: (A) Any one or more or all commodities and commodity options regularly
traded on exchanges in or outside the United States, in either spot or futures contracts,
claims, straddles, spreads or any other type of commodity contract, whether long or
short; (B) puts, calls, straddles and options in any domestic or foreign securities and
short sales of such contracts and of securities; (C) interests in oil, gas, coal, gravel,
sand, timber, sulphur, precious and semiprecious stones, minerals, metals and their ores,
including but not limited to iron, aluminum, copper, rhodium, palladium, platinum,
radium, uranium and gold and silver bullion, bars, bricks and coins, and any other mineral
and timber rights, royalties, leases and payments, and interests in computer hardware
and software; (D) any interests in breeding or dairy cattle, horses, hogs, sheep, dogs,
cats or other animals; (E) postage and revenue stamps, postal covers, coins, jewelry,
rare books, paintings, etchings, statues, sculptures, antiques, curios, antique firearms and
edged weapons, and other collectible items and art objects; (F) aircraft, ships, railroad
locomotives, rolling stock, buses, antique automobiles and other vehicles; (G) foreign
currencies and United States Treasury bills including futures contracts in such assets,
whether long or short.
(5) Oil and Gas Interests. -To have power with respect to oil, natural gas, minerals,
and all other natural resources and rights to any interests therein, together with all equipment rights pertaining thereto, including oil and gas royalties, leases, payments, or other
oil and gas interests of any character, whether owned in fee, as lessee, lessor, licensee,
concessionaire or otherwise, either alone or jointly with others as partner, joint tenant,
or joint venturer or in any other noncorporate manner, to: (A) Make oil, gas and mineral
leases or subleases; (B) pay delayed rents, lease bonuses, royalties, overriding royalties,
taxes, assessments, and all other charges; (C) sell, lease, exchange, mortgage, pledge
or otherwise hypothecate any or all of such rights and interests; (D) surrender or abandon,
with or without consideration, any or all of such rights and interests; (E) make farm-out, pooling, repressuration and unitization agreements; (F) make reservations or impose
conditions on the transfer of any such rights or interests; (G) employ the most advantageous business form in which properly to exploit such rights and interests, whether
as corporations, general or limited partnerships, mining partnerships, joint ventures,
cotenancies, or otherwise; (H) drill, test, explore, mine, develop and otherwise exploit
any and all such rights and interests; (I) produce, process, sell or exchange all products
recovered through the exploitation of such rights and interests, and to enter into contracts
and agreements for or in respect of the installation or operation of absorption, reprocessing or other processing plants; (J) carry any or all such interests in the name or names
of a nominee or nominees; (K) delegate, to the extent permitted by law, any or all of
the powers set forth herein to the operator of such property; and (L) employ personnel,
rent office space, buy or lease office equipment, contract and pay for geological surveys
and studies, procure appraisals, and generally to conduct and engage in any and all
activities incident to the foregoing powers, with full power to borrow and pledge in
order to finance such activities. The fiduciary shall have the right to rely on the judgment
and recommendations of the operators of such property and need not make an independent investigation before acting on their reasonable recommendations.
(6) Form Corporation or Other Entity. -To form a corporation or other entity under
the laws of any jurisdiction and to transfer, assign, and convey to such corporation or
entity all or any part of the estate or of any trust property in exchange for the stock,
securities or obligations of any such corporation or entity, and to continue to hold such
stock, securities and obligations.
(7) Fiduciary May Become Director or Officer. -To vote for any individual fiduciary or any employee, officer or director of any corporate fiduciary, to be a director,
officer, or both, of any corporation or small business investment company in which the
estate or trust may be interested and to belong to any committee relating in any way to
such corporation or company; and to serve as such director, officer, committee member,
or any or all of them, and receive proper remuneration for such services, and to exercise
its discretion with respect to all matters concerning the affairs of such corporation or
company, and to consent to corporate or partnership sales, exchanges, leases, mortgages
and encumbrances, without in any way being accountable for any such acts to any
beneficiaries.
(8) Operate Farm. -To continue any agricultural operation received by the fiduciary
pursuant to the will or other instrument and to do any and all things deemed advisable
by the fiduciary in the management and maintenance of any farm, which term includes,
but is not limited to, a farm, garden, orchard, ranch, timber tract or dairy; and to do any
and all things concerning the production and marketing of crops and dairy, poultry,
livestock, orchard and forest products including but not limited to the following powers:
(A) To operate the farm with hired labor, tenants or sharecroppers; (B) to lease or rent
the farm for cash or for a share of the crops; (C) to purchase or otherwise acquire farm
machinery and equipment and livestock; (D) to undertake the construction, repairs and
improvements to farm buildings of all kinds needed in the fiduciary's judgment, for the
operation of the farm; (E) to make or obtain loans or advances at the prevailing rate or
rates of interest for farm purposes such as for production, harvesting, or marketing, or
for the construction, repair, or improvement of farm building, or for the purchase of
farm machinery or equipment or livestock; (F) to employ approved soil conservation
practices in order to conserve, improve, and maintain the fertility and productivity of
the soil; (G) to protect, manage and improve the timber and forest on the farm and sell
the timber and forest products when it is for the best interest of the estate, or any trust;
(H) to ditch, dam and drain damp or wet fields and areas of the farm when and where
needed; (I) to engage in the production of livestock, poultry or dairy products, and to
construct such fences and buildings and plant such pastures and crops as may be necessary to carry on such operations; (J) to market the products of the farm; (K) in general,
to employ good husbandry in the operation of the farm.
(9) Residential Realty. -To retain any residential real property or apartment and
the contents of said real property or apartment received by it hereunder, to purchase,
to rent and to maintain residential real property including an ordinary, cooperative or
condominium apartment for occupancy, rent free, by any of the beneficiaries hereunder,
so long as one or more of them wish to use and occupy it as a home, and to sell it when
it is no longer so used and occupied, to pay all rent, taxes, assessments, repairs and other
charges for maintaining such real and personal property or apartment, including title,
public liability, fire and extended coverage insurance, and to make such purchases or
payments out of such beneficiary's portion of the principal or income, in accordance
with applicable law, as the fiduciary in its sole discretion shall determine.
(10) Deal with Estate and Trust. -To deal in every way with the estate and trust of
the settlor or testator, including but not limited to the purchase from, the sale to, the
exchange of assets with such estate and trust, or the making of loans thereto, either
secured or unsecured and either interest-free or at such rates of interest as the fiduciary
shall determine, and to make loans from an estate to a trust, in the discretion of the
fiduciary. The powers described herein may be exercised by the fiduciary even though
it is the legal representative of the estate, and the fiduciary shall not incur any liability
for any loss resulting from the exercise of any such power.
(11) Suits on Insurance Policies. -To institute any proceeding at law or in equity
to enforce the payment of any life insurance policy payable to the fiduciary and to do
any and all things which it in its sole discretion deems advisable for the purpose of
collecting any sums which may be due or payable under any such policy, provided, that
the fiduciary shall be under no obligation to institute or enter into any such litigation to
enforce the payment of any such policy until it shall have been indemnified to its satisfaction against all expenses and liabilities to which it may, in its judgment, be subjected
by any such action on its part.
(12) Advancement of Income. -The fiduciary, other than a beneficiary serving as
a fiduciary, shall have the discretion to advance income to or for the use of any beneficiary and the fiduciary shall have a lien therefor on that beneficiary's future benefits.
(13) Majority Action Permissible. -Where there are three or more fiduciaries, the
decision of a majority of the fiduciaries shall bind all of the fiduciaries, but an absent
or dissenting fiduciary who joins in carrying out the decision of the majority shall not
be liable for the consequences of any majority decision if said absent or dissenting
fiduciary promptly files a written notice, by certified mail, of his dissent with its cofiduciaries and with (A) the probate court having jurisdiction over any estate or trust or (B)
the income beneficiaries of any inter vivos trust, provided that liability for failure to
join in administering the estate or trust or in preventing a breach of the trust may not
thus be avoided.
(14) Reduce Interest Rates. -To reduce the interest rate from time to time on any
obligation, whether secured or unsecured, constituting a part of an estate or trust.
(15) Establish and Maintain Reserves. -In lieu of the basic power specified in subdivision (28) of section 45a-234, the fiduciary shall have the power to set up proper and
reasonable reserves for taxes, assessments, insurance premiums, depreciation-obsolescence, amortization, depletion, other than percentage depletion, of mineral, timber or
other wasting assets, and for repairs, improvements, and general maintenance of buildings, or other property out of rents, profits, or other income received; and to set up
reserves also for the equalization of payments to or for beneficiaries; provided that the
provisions of this subdivision shall not affect the ultimate interests of beneficiaries in
such reserves, although no beneficiary may compel distribution of amounts held in such
reserves.
(16) Investment Philosophy. -To invest with emphasis on growth and capital appreciation, and to apply the same criteria to both new assets and those already in the
estate or trust. The fiduciary shall not be liable for any good faith action taken by it but
only for negligence, since some assets in which it is authorized to invest are not ordinarily
deemed suitable for fiduciary investment.
(17) Investment during Estate Administration. -To invest and reinvest the assets
of the estate actively and aggressively during the period of administration thereof.
(18) Premium and Discount. -To determine whether or not to amortize from income
as a sinking fund any premium paid to acquire property and to accrue any discount
received at the time of acquisition thereof.
(19) Remortgage and Refinance Real Estate. -To remortgage and refinance real
estate for any one or more of the following purposes: (A) Business reasons; (B) to obtain
funds to pay (i) estate, inheritance, transfer, succession, generation-skipping or other
death taxes or duties; (ii) income, property, excise or other similar taxes; (iii) interest
and penalties on any tax; and (iv) debts and funeral and administration expenses of the
settlor or testator; or (C) to invest or reinvest or speculate in real, personal or mixed
property of any description and wherever situated.
(20) Terminate Small Trusts. -To terminate any trust by distributing to the then
income beneficiary of such trust the entire principal thereof, or an annuity purchased
therewith, absolutely and free of trust, if the fiduciary, other than a beneficiary or the
settlor serving as such, in its sole discretion, deems continuation of such trust unwarranted in view of the size of the trust.
(21) Distribute Directly to Remaindermen. -To distribute property directly from
the estate to the remaindermen of any trust, without the interposition of such trust, if
the facts at the time for such distribution are such that no trust of such property would
be operative under the terms of the will.
(22) Disclaimer of Power. -To disclaim part or all of any one or more of the incorporated or specifically granted powers of the fiduciary by instrument in writing filed with
the will, trust or other instrument incorporating this power and by complying with the
provisions of sections 45a-578 to 45a-585, inclusive.
(23) Comply with Stock Restrictions. -To observe and comply with any limitations
on the disposition of any stock existing in the articles of incorporation, bylaws or other
contract affecting such shares.
(24) Continue Subchapter S election. -To file appropriate consent to the continuation of any Subchapter S election in existence at the time of the testator's death, within
the period required by the applicable provision of the Federal Internal Revenue Code
then in effect.
(25) Acquire Interest in Trust Asset. -To acquire an undivided or an individual
interest in a trust or estate asset in which the fiduciary, in any fiduciary capacity, holds
an undivided interest.
(26) Income to Custodian for Minor. -Any and all income or principal that is distributed, paid to or applied for the benefit of a minor may, in the discretion of the fiduciary,
be paid to any person or corporation who is serving as a custodian for the benefit of said
minor under the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act. If
there is no such custodian, the fiduciary may appoint an adult member of the minor's
family, a guardian of the minor, a bank with trust powers, or himself, herself or itself
to serve as such custodian and receive such payments.
(27) General Powers. -To exercise every power and discretion in the management
of the estate and the trusts created hereunder as the fiduciary would have if it were the
absolute owner thereof. This general power shall not be limited in any way by the powers
incorporated or granted herein, but no beneficiary serving as a cofiduciary may participate in any decision, under this or any other power, that affects or could affect the share
of such beneficiary relative to that of any other beneficiary in income, principal or in a
trust remainder.
(1969, P.A. 827, S. 3; 1971, P.A. 556, S. 19-25; 1972, P.A. 169, S. 2; P.A. 77-271, S. 1; P.A. 78-198, S. 5, 6; P.A. 80-410, S. 11-13, 21; 80-476, S. 206; P.A. 81-396, S. 4, 5; P.A. 83-520, S. 5, 6; P.A. 95-117, S. 25.)
History: 1971 act authorized investment in and purchase of stock or securities issued by fiduciary's parent holding
company in Subdiv. (1), added reference to "repressuration" agreements in Subdiv. (5)(E) and deleted reference to power
to allocate proceeds received as consideration for severance of lands of various minerals and natural resources in (5)(L),
added reference to apartments in Subdiv. (9), specified that power in Subdiv. (15) are in lieu of basic powers under
Sec. 45-100e(28) and deleted provision requiring fiduciary to set up reserves when instrument provides for a charitable
organization as a remainder fiduciary and added Subdivs. (16) to (27); 1972 act added Subdiv. (16)(a) and (b); P.A. 77-271 deleted Subdiv. (16)(a) and (b) re deposits in clearing corporations; P.A. 78-198 replaced former Subdiv. (26) re
"Distribution of ordinary income portion of the lump sum received from a qualified plan" with new provisions re "Income
to custodian for minor"; P.A. 80-410 added reference to commodity options in Subdiv. (4)(A), to revenue stamps and
postal covers in (4)(E), to rolling stock in (4)(F) and to treasury bills in (4)(G), included personal property in Subdiv. (9)
and rephrased Subdiv. (22), replacing "document" with "will, trust or other instrument" and reference to compliance with
chapter 798; P.A. 80-476 reiterated change re "document" in Subdiv. (22); P.A. 81-396 amended Subdiv. (4) to include
options in any domestic or foreign securities, interests in timber, semiprecious stones, minerals, radium, gold and silver
bullion, bars, bricks and coins, horses, dogs, cats, etchings, antique firearms and edged weapons, collectible items and
United States treasurybills and amended Subdiv. (19) to include generation-skipping taxes; P.A. 83-520 amended Subdiv.
(10) by adding the words "and trust", permitting the making of interest free loans, and permitting the making of loans from
an estate to a trust, in the discretion of the fiduciary and added "and interests in computer hardware and software" in Subdiv.
(4)(C); Sec. 45-100f transferred to Sec. 45a-235 in 1991; P.A. 95-117 amended Subdiv. (26) to include reference to Uniform
Transfers to Minors Act.
Annotations to former section 45-100f:
Cited. 166 C. 21. Cited. 178 C. 42.