Sec. 45a-542k. Business and other activities conducted by trustee.
Sec. 45a-542k. Business and other activities conducted by trustee. (a) If a
trustee who conducts a business or other activity determines that it is in the best interest
of all the beneficiaries to account separately for the business or activity instead of accounting for it as part of the trust's general accounting records, the trustee may maintain
separate accounting records for its transactions, whether or not its assets are segregated
from other trust assets.
(b) A trustee who accounts separately for a business or other activity may determine
the extent to which its net cash receipts must be retained for working capital, the acquisition or replacement of fixed assets and other reasonably foreseeable needs of the business
or activity, and the extent to which the remaining net cash receipts are accounted for as
principal or income in the trust's general accounting records. If a trustee sells assets of
the business or other activity, other than in the ordinary course of the business or activity,
the trustee shall account for the net amount received as principal in the trust's general
accounting records to the extent the trustee determines that the amount received is no
longer required in the conduct of the business.
(c) Activities for which a trustee may maintain separate accounting records include:
(1) Retail, manufacturing, service and other traditional business activities;
(2) Farming;
(3) Raising and selling livestock and other animals;
(4) Management of rental properties;
(5) Extraction of minerals and other natural resources;
(6) Timber operations; and
(7) Activities to which section 45a-452v applies.
(P.A. 99-164, S. 12, 36.)
History: P.A. 99-164 effective January 1, 2000.