Sec. 45a-542y. Disbursements from principal.
Sec. 45a-542y. Disbursements from principal. (a) A trustee shall make the following disbursements from principal:
(1) The remaining one-half of the disbursements described in subdivisions (1) and
(2) of section 45a-542x;
(2) All of the trustee's compensation calculated on principal as a fee for acceptance,
distribution or termination, and disbursements made to prepare property for sale;
(3) Payments on the principal of a trust debt;
(4) Expenses of a proceeding that concerns primarily principal, including a proceeding to construe the trust or to protect the trust or its property;
(5) Premiums paid on a policy of insurance not described in subdivision (4) of
section 45a-542x of which the trust is the owner and beneficiary;
(6) Estate, inheritance and other transfer taxes, including penalties, apportioned to
the trust; and
(7) Disbursements related to environmental matters, including reclamation, assessing environmental conditions, remedying and removing environmental contamination, monitoring remedial activities and the release of substances, preventing future
releases of substances, collecting amounts from persons liable or potentially liable for
the costs of those activities, penalties imposed under environmental laws or regulations
and other payments made to comply with those laws or regulations, statutory or common
law claims by third parties, and defending claims based on environmental matters.
(b) If a principal asset is encumbered with an obligation that requires income from
that asset to be paid directly to the creditor, the trustee shall transfer from principal to
income an amount equal to the income paid to the creditor in reduction of the principal
balance of the obligation.
(P.A. 99-164, S. 26, 36.)
History: P.A. 99-164 effective January 1, 2000.