Sec. 45a-484. (Formerly Sec. 45-79c). Termination of small trusts.
Sec. 45a-484. (Formerly Sec. 45-79c). Termination of small trusts. (a) Except
as otherwise provided by the trust or section 45a-520 with respect to charitable trusts,
a probate court having jurisdiction under this section may terminate a trust, in whole or
in part, on application therefor by the trustee, by any beneficiary entitled to income from
the trust, or by such beneficiary's legal representative, after reasonable notice to all
beneficiaries who are known and in being and who have vested or contingent interests
in the trust, and after holding a hearing, if the court determines that all of the following
apply: (1) The continuation of the trust is (A) uneconomic when the costs of operating
the trust, probable income and other relevant factors are considered, or (B) not in the
best interest of the beneficiaries; (2) the termination of the trust is equitable and practical;
and (3) the current market value of the trust does not exceed the sum of one hundred
thousand dollars.
(b) If the probate court orders termination of the trust, in whole or in part, it shall
direct that the principal and undistributed income be distributed to the beneficiaries in
such manner as the probate court determines is equitable. The probate court may also
make such other order as it deems necessary or appropriate to protect the interests of
the beneficiaries.
(c) No trust may be terminated over the objection of its settlor or where the interest
of the beneficiaries cannot be ascertained. The provisions of this section shall not apply
to spendthrift trusts.
(d) A probate court may terminate a testamentary trust pursuant to this section if
the probate court has jurisdiction over the accounts of the testamentary trustee. A probate
court may terminate an inter vivos trust pursuant to this section if the trustee or settlor
has his or its principal place of business in, or resides in, that probate district.
(P.A. 88-95; P.A. 94-98, S. 9; P.A. 03-183, S. 1.)
History: Sec. 45-79c transferred to Sec. 45a-484 in 1991; P.A. 94-98 amended Subsec. (a)(3) re maximum of current
market value of trust by increasing $20,000 to $40,000; P.A. 03-183 amended Subsec. (a)(1) by making a technical change
(a)(3) by increasing maximum current market value to $100,000.