Conn. Gen. Stat. § 45a-487k

Current with legislation from the 2024 Regular and Special Sessions.

Section 45a-487k - Definitions

As used in this section and sections 45a-487l to 45a-487s, inclusive:

(1) "Claim" means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured.

(2) "Creditor" means, with respect to a transferor, a person who has a claim.

(3) "Debt" means liability on a claim.

(4) "Disposition" means a transfer, conveyance or assignment of property, including a change in the legal ownership of property occurring upon the substitution of one trustee for another or the addition of one or more new trustees, or the exercise of a power so as to cause a transfer of property, to a trustee or trustees. "Disposition" does not include the release or relinquishment of an interest that was the subject of a qualified disposition.

(5) "Property" includes real property, tangible and intangible personal property, and interests in real or personal property, tangible and intangible.

(6) "Qualified disposition" means a disposition by or from a transferor to a trustee, with or without consideration, by means of a trust instrument. "Qualified disposition" does not include a disposition:

(A) In derogation of any state or federal agency claim or right of recovery under 42 USC Chapter 7, Subchapter XIX against a trust established by a transferor or such transferor's spouse, or

(B) in respect to a state or federal agency treatment of the trust instrument in a determination of a transferor's eligibility under a state plan under 42 USC Chapter 7, Subchapter XIX.

(7) "Spouse" and "former spouse" means only persons to whom the transferor was married at, or before, the time the qualified disposition is made.

(8) "Transferor" means an individual who, or entity which, as an owner of property or as a holder of a general power of appointment, which authorizes the holder to appoint in favor of the holder, the holder's creditors, the holder's estate or the creditors of the holder's estate, or as a trustee, directly or indirectly, makes a disposition or causes a disposition to be made.

(9) "Qualified trustee" means:

(A) Any person, other than the transferor, who in the case of an individual, is a resident of this state or who, in all other cases, is a state or federally chartered bank or trust company having a place of business in this state, is authorized to engage in a trust business in this state, and maintains or arranges for custody in this state of some or all of the property that is the subject of the qualified disposition, maintains records in this state for the trust on an exclusive or nonexclusive basis, prepares or arranges for the preparation in this state of fiduciary income tax returns for the trust, or otherwise materially participates in this state in the administration of the trust.

(B) "Qualified trustee" does not include (i) the transferor, (ii) any other individual who is a nonresident of this state, or (iii) an entity that is not authorized by the laws of this state to act as a trustee or whose activities are not subject to supervision as provided in subparagraph (A) of this subdivision.

(10) "Trust instrument" means an instrument, in writing, appointing at least one qualified trustee for the property that is the subject of a disposition, which instrument:

(A) Expressly provides that the laws of this state govern the validity, construction and administration of the trust;

(B) Is irrevocable; and

(C) Provides that the interest of the transferor or other beneficiary in the trust property or the income from the trust property may not be transferred, assigned, pledged or mortgaged, whether voluntarily or involuntarily, before the qualified trustee or qualified trustees actually distribute the property or income from the trust property to or for the benefit of the beneficiary, and the provision of the trust instrument shall be deemed to be a restriction on the transfer of the transferor's beneficial interest in the trust that is enforceable under applicable nonbankruptcy law within the meaning of 11 USC 541 (c)(2), as amended from time to time.

Conn. Gen. Stat. § 45a-487k

Amended by P.A. 21-0039,S. 6 of the Connecticut Acts of the 2021 Regular Session, eff. 1/1/2022.

Added by P.A. 19-0137,S. 100 of the Connecticut Acts of the 2019 Regular Session, eff. 1/1/2020.