Connecticut Senate Bill SB00986

Connecticut 2021 Regular Session

• Introduced: 3/4/21
• Refer: 3/4/21
• Report Pass: 3/29/21
• Refer: 4/9/21
• Report Pass: 4/15/21
• Engrossed: 5/19/21
• Report Pass: 5/21/21
• Passed: 6/2/21
• Chaptered: 6/7/21
• Enrolled: 6/8/21
• Passed: 6/14/21

Caption

An Act Concerning Revisions To The Connecticut Uniform Trust Code, Rule Against Perpetuities, Connecticut Uniform Power Of Attorney Act, Connecticut Business Corporation Act And Connecticut Revised Nonstock Corporation Act.

Impact

The bill seeks to streamline the governance of trusts by allowing for designated representatives to receive notifications on behalf of beneficiaries and making provisions for trusts that can continue even if their charitable purposes become impractical or impossible. These updates to the trust laws are intended to enhance the administration of trusts and provide beneficiaries with clearer access to information and representation, aligning Connecticut laws with modern practices prevalent in other states.

Summary

Substitute Senate Bill No. 986 aims to revise the Connecticut Uniform Trust Code, the Rule Against Perpetuities, the Connecticut Uniform Power of Attorney Act, and provisions related to the Connecticut Business Corporation Act and the Connecticut Revised Nonstock Corporation Act. These changes reflect an effort to modernize and clarify existing statutes regarding trusts and corporate governance, particularly focusing on the interactions between beneficiaries and trustees, as well as the frameworks for not-for-profit organizations.

Sentiment

The sentiment surrounding SB00986 has generally been positive, as evidenced by the legislative voting records, which reflect overwhelming support among legislators. Many proponents of the bill argue that these revisions will not only protect beneficiaries more effectively but also enhance trust management efficiency. However, there are some concerns from legal experts regarding the potential implications of increased complexity in trust administration and the legal responsibilities placed on trustees.

Contention

Notable points of contention include debates over the definitions of 'ascertainable standards' for trust distributions and the stipulations regarding nonvested property interests. Critics may voice concerns about whether these revisions dilute protections for beneficiaries or whether they adequately address issues related to the long-term sustainability of charitable endeavors under changing legal interpretations. These discussions highlight the ongoing balancing act between ensuring robust protections for beneficiaries and fostering a flexible regulatory environment for trust administration.