Petition for Decanting (Connecticut)

PETITION FOR DECANTING UNDER THE CONNECTICUT UNIFORM TRUST DECANTING ACT (Conn. Gen. Stat. §§ 45a-545a to 45a-545cc)

COURT INFORMATION

PROBATE COURT, DISTRICT OF [____________________]
STATE OF CONNECTICUT

PD Case Number: [________________________________]

Judge: [________________________________]

IN THE MATTER OF THE [NAME OF FIRST TRUST]: PETITION FOR DECANTING UNDER Conn. Gen. Stat. §§ 45a-545a to 45a-545cc

PETITION

Petitioner, [________________________________], as Trustee and authorized fiduciary of the [Name of First Trust], by and through undersigned counsel, respectfully petitions this Probate Court pursuant to Conn. Gen. Stat. § 45a-545i of the Connecticut Uniform Trust Decanting Act, and alleges as follows:

I. PETITIONER (AUTHORIZED FIDUCIARY)

1. Petitioner is [________________________________], the [☐ sole trustee ☐ co-trustee] of the [Name of First Trust] (the "First Trust") and is an "authorized fiduciary" within the meaning of Conn. Gen. Stat. § 45a-545b(3).

2. Petitioner is not a settlor or beneficiary of the First Trust (as required by § 45a-545b(3)). If Petitioner is a settlor-trustee or beneficiary-trustee, Petitioner respectfully requests the Court to appoint a special fiduciary under § 45a-545i to exercise the decanting power.

3. Petitioner's status:
   ☐ Connecticut-resident individual trustee
   ☐ Connecticut-chartered bank/trust company
   ☐ National banking association with trust powers in Connecticut
   ☐ Non-Connecticut trustee acting under trust administered in Connecticut
   ☐ Co-trustee with [________________________________]

4. Petitioner's contact information:
   Street: [________________________________]
   City: [________________] State: [____] Zip: [________]
   Telephone: [(___) ___-____] Email: [________________________________]

II. JURISDICTION AND VENUE

5. This Probate Court has subject matter jurisdiction over this proceeding pursuant to Conn. Gen. Stat. § 45a-98 (general powers of probate courts), § 45a-499o (subject matter jurisdiction of Probate Courts and the Superior Court under the Connecticut Uniform Trust Code — § 45a-499o(a)(16) expressly covers a petition related to the exercise of a decanting power under § 45a-545i), § 45a-499p (venue), and § 45a-545i (Connecticut UTDA — court involvement).

6. Venue is proper in the Probate District of [____________________] because (check all that apply):
   ☐ The First Trust has its principal place of administration in this district;
   ☐ The settlor was/is domiciled in this district;
   ☐ A trustee resides or maintains a place of business in this district;
   ☐ The First Trust is a testamentary trust under a will admitted to probate in this district;
   ☐ Trust real property is situated in this district;
   ☐ Other: [________________________________].

7. The principal place of administration of the First Trust is Connecticut [☐ by designation in the trust instrument ☐ because the trustee's principal place of business is in Connecticut ☐ because the trustee resides in Connecticut ☐ because the trust is governed substantially under Connecticut law].

III. THE FIRST TRUST

8. The First Trust is the [________________________________] (the "First Trust"), created by [________________________________] (the "Settlor") by trust instrument dated [__/__/____] (the "First Trust Instrument"). A true and correct copy of the First Trust Instrument, together with all amendments, is attached as Exhibit A.

9. The First Trust is irrevocable. The Settlor is [☐ living ☐ deceased, died [__/__/____]].

10. The First Trust is (check all that apply):
    ☐ Inter vivos trust (court approval optional under § 45a-545i)
    ☐ Testamentary trust (court approval required under PA 24-104)
    ☐ Trust containing a charitable interest (notice to Connecticut Attorney General required under § 45a-545n)
    ☐ Trust for a beneficiary with a disability (special-needs decanting under § 45a-545m)
    ☐ Trust for the care of an animal (§ 45a-545w)
    ☐ Grandfathered GST trust (irrevocable on or before September 25, 1985)
    ☐ Other: [________________________________]

11. The First Trust holds assets with an approximate fair market value of $[__________] as of [__/__/____]. A summary inventory is attached as Exhibit B.

12. The qualified beneficiaries of the First Trust within the meaning of Conn. Gen. Stat. § 45a-499c(23) and § 45a-545b are:

13. The distributive discretion of the Petitioner-Fiduciary under the First Trust is (check one):

☐ Expanded distributive discretion (Conn. Gen. Stat. § 45a-545k) — the First Trust grants discretion to distribute principal that is NOT limited by an ascertainable standard or a reasonably definite standard.

☐ Limited distributive discretion (Conn. Gen. Stat. § 45a-545l) — the First Trust grants discretion to distribute principal that is limited by an ascertainable standard (e.g., HEMS — health, education, maintenance, support) or a reasonably definite standard.

14. The trust provision granting distributive discretion is quoted verbatim:

"[Quote the exact language of the discretionary distribution clause from the First Trust Instrument.]"

15. The First Trust [☐ does ☐ does not] expressly prohibit decanting (Conn. Gen. Stat. § 45a-545o). The trust language addressing modification is: [________________________________].

IV. THE SECOND TRUST

16. The Second Trust is the [________________________________] (the "Second Trust"). The proposed Second Trust instrument is attached as Exhibit C.

17. The Second Trust [☐ is a newly created trust ☐ is an existing trust to which the Petitioner-Fiduciary proposes to distribute the property of the First Trust ☐ is the First Trust as modified by the exercise of the decanting power (per Conn. Gen. Stat. § 45a-545b(25)(A))].

18. The principal place of administration of the Second Trust is Connecticut.

19. The trustee(s) of the Second Trust will be:

20. The qualified beneficiaries of the Second Trust are:

V. STATUTORY AUTHORITY — CONNECTICUT UNIFORM TRUST DECANTING ACT

21. Pursuant to Conn. Gen. Stat. § 45a-545k (or § 45a-545l, as applicable), an authorized fiduciary having [☐ expanded ☐ limited] distributive discretion over the principal of the First Trust may exercise the decanting power to distribute all or part of the property of the First Trust in further trust to one or more second trusts, or to modify the terms of the First Trust, subject to the limitations of the Connecticut Uniform Trust Decanting Act.

22. Petitioner-Fiduciary has the requisite distributive discretion as set forth in Paragraph 13 above. The exercise of the decanting power is consistent with the Fiduciary's duties under Conn. Gen. Stat. § 45a-545d.

23. (If exercising under expanded discretion — § 45a-545k) The Second Trust does not include as a current beneficiary a person who is not a current beneficiary of the First Trust, except as permitted by § 45a-545k(b), and includes provisions consistent with § 45a-545k(c)-(f).

24. (If exercising under limited discretion — § 45a-545l) The Second Trust retains the First Trust’s current, presumptive remainder, and successor beneficiaries; does not alter the limited distribution standard except as § 45a-545l(d) permits; and does not modify a power of appointment, as required by § 45a-545l(c).

25. The decanting does not reduce or eliminate a vested interest under [☐ § 45a-545k(b)(3) (expanded discretion) ☐ § 45a-545l(c)(4) (limited discretion)].

26. The Second Trust does not extend the duration of the First Trust beyond the limit permitted by Conn. Gen. Stat. § 45a-545t and applicable rule against perpetuities (Conn. Gen. Stat. § 45a-491; § 45a-491a — Connecticut's perpetuities provisions for trusts).

VI. COMPARISON OF FIRST TRUST AND SECOND TRUST PROVISIONS

27. The material differences between the First Trust and the Second Trust are summarized in the following table. A complete redlined comparison is attached as Exhibit D.

VII. COMPLIANCE WITH FIDUCIARY AND STATUTORY DUTIES

28. Petitioner-Fiduciary certifies that the proposed exercise of the decanting power:

☐ Is consistent with the duties of loyalty (Conn. Gen. Stat. § 45a-499bbb), impartiality (§ 45a-499ccc), and prudent administration (§ 45a-499ddd) under the Connecticut Uniform Trust Code and Conn. Gen. Stat. § 45a-545d.

☐ Does not materially benefit the Fiduciary personally (or, if it does, the conflict has been disclosed and consent or court approval is being sought herein).

☐ Does not jeopardize, within the meaning of Conn. Gen. Stat. § 45a-545s: (i) the marital deduction (IRC §§ 2056, 2523); (ii) the charitable deduction (IRC §§ 2055, 2522, 642(c), 170); (iii) the gift tax annual exclusion (IRC § 2503(b), (c)); (iv) any grandfathered GST status (Treas. Reg. § 26.2601-1(b)(4)); (v) any allocated GST exemption or zero-inclusion-ratio status (IRC § 2642; Treas. Reg. § 26.2654-1); (vi) the grantor or non-grantor trust income-tax classification (IRC §§ 671-679); or (vii) S-corporation shareholder eligibility (IRC § 1361).

☐ Complies with Conn. Gen. Stat. § 45a-545m (special-needs decanting) if the Second Trust is a special-needs trust.

☐ Complies with Conn. Gen. Stat. § 45a-545n (protection of charitable interest) and includes notice to the Connecticut Attorney General if any charitable interest is implicated.

☐ Does not modify the Fiduciary's compensation in violation of Conn. Gen. Stat. § 45a-545p.

VIII. GST INCLUSION-RATIO ANALYSIS (Treas. Reg. § 26.2654-1; § 26.2601-1(b)(4); Conn. Gen. Stat. § 45a-545s)

29. The GST tax status of the First Trust is:

☐ Grandfathered (irrevocable on or before September 25, 1985) — Treas. Reg. § 26.2601-1(b)(1).
☐ Non-grandfathered with GST exemption fully allocated (zero inclusion ratio).
☐ Non-grandfathered with partial GST exemption allocation (inclusion ratio = [____]).
☐ Non-grandfathered with no GST exemption allocated (inclusion ratio = 1.0).
☐ Not a GST-relevant trust.

30. The proposed decanting [☐ will ☐ will not] cause the First Trust to lose grandfathered status under Treas. Reg. § 26.2601-1(b)(4). Analysis is set forth in Exhibit E, including application of the applicable rules in Treas. Reg. § 26.2601-1(b)(4)(i)(A)–(D).

31. If the Second Trust constitutes a severance of the First Trust, the severance [☐ does ☐ does not] qualify as a "qualified severance" under Treas. Reg. § 26.2642-6, preserving the separate inclusion ratios of the resulting trusts.

32. The decanting complies with Conn. Gen. Stat. § 45a-545s's tax-related limitations preserving GST exemption allocation, marital deduction, charitable deduction, § 2503(c) gift exclusion, S-corp eligibility, and qualified retirement benefits.

IX. NOTICE UNDER CONN. GEN. STAT. § 45a-545g (60-DAY NOTICE)

33. Petitioner-Fiduciary [☐ has provided ☐ will provide] notice in a record of the intended exercise of the decanting power not later than sixty (60) days before the exercise to each person listed in Conn. Gen. Stat. § 45a-545g(b): (i) each settlor of the First Trust, if living or then in existence; (ii) each qualified beneficiary of the First Trust; (iii) each holder of a presently exercisable power of appointment over any part or all of the First Trust; (iv) each person currently having the right to remove or replace the authorized fiduciary; (v) each other fiduciary of the First Trust; (vi) each fiduciary of the Second Trust; (vii) the Connecticut Attorney General if the First Trust contains a determinable charitable interest; and (viii) the Attorney General and Department of Social Services if the First Trust is established under 42 U.S.C. § 1396p(d)(4)(A) or (C).

34. The notice satisfies the form-and-content requirements of Conn. Gen. Stat. § 45a-545g, including (i) the manner in which the fiduciary intends to exercise the decanting power; (ii) the proposed effective date of the exercise; (iii) a copy of the First Trust instrument; and (iv) a copy of the proposed Second Trust instrument.

35. The 60-day notice period [☐ was waived by all persons entitled to receive notice, each in a signed record ☐ was not waived by all such persons]. Early exercise relies on the first option under Conn. Gen. Stat. § 45a-545g(d). Any signed waivers are attached as Exhibit F.

36. The decanting [☐ was ☐ will be] exercised on [__/__/____], after expiration of the statutory notice period or waiver of that period in signed records by all persons entitled to notice. Notice, waiver, or expiration does not supply beneficiary consent or bar a petition under Conn. Gen. Stat. § 45a-545i. Any objection and its disposition should be described here: [________________________________].

37. Proofs of service / acknowledgments of notice are attached as Exhibit F.

X. TESTAMENTARY-TRUST COURT-APPROVAL REQUIREMENT (IF APPLICABLE)

38. ☐ Check if the First Trust is a TESTAMENTARY TRUST. The First Trust was created under the Last Will and Testament of [________________________________], dated [__/__/____], admitted to probate by this Court (or by the Probate Court of [____________] District) on [__/__/____].

39. Pursuant to Public Act 24-104 and the Connecticut Uniform Trust Decanting Act, an exercise of the decanting power with respect to a testamentary trust requires approval by this Probate Court. Petitioner-Fiduciary respectfully seeks such approval herein.

XI. FACTUAL BASIS FOR DECANTING

40. The First Trust was established by the Settlor for the following purposes: [________________________________].

41. Since the creation of the First Trust, the following circumstances have arisen warranting the exercise of the decanting power:

[________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________]

42. The exercise of the decanting power is consistent with the Settlor's intent and the fiduciary duties owed to the beneficiaries because: [____________].

XII. PRIOR PROCEEDINGS

43. There are no prior or pending court proceedings involving the First Trust except: ☐ None ☐ [____________].

XIII. PRAYER FOR RELIEF

WHEREFORE, Petitioner respectfully prays that this Probate Court enter a Decree pursuant to Conn. Gen. Stat. § 45a-545i:

A. Finding that the Court has jurisdiction over the parties and the subject matter pursuant to Conn. Gen. Stat. §§ 45a-98, 45a-499o, 45a-499p, and 45a-545i, and that venue is proper;

B. Finding that the principal place of administration of the First Trust is Connecticut and that the First Trust is governed by Connecticut law;

C. Finding that Petitioner is an authorized fiduciary within the meaning of Conn. Gen. Stat. § 45a-545b(3), is not a settlor or beneficiary of the First Trust, and has [☐ expanded distributive discretion under § 45a-545k ☐ limited distributive discretion under § 45a-545l];

D. Finding that notice has been provided in accordance with Conn. Gen. Stat. § 45a-545g and that no qualified beneficiary or other noticed party has timely objected (or all objections have been resolved);

E. Finding that the proposed exercise of the decanting power complies with the Connecticut Uniform Trust Decanting Act, including all applicable provisions of Conn. Gen. Stat. §§ 45a-545a through 45a-545cc;

F. Finding that the proposed decanting does not jeopardize the grandfathered GST status (where applicable), the marital deduction, the charitable deduction, the income-tax classification, S-corp eligibility, qualified retirement benefits, or any other federal tax attribute of the First Trust as required by Conn. Gen. Stat. § 45a-545s;

G. Approving and confirming the exercise of the decanting power by Petitioner-Fiduciary (and, if the First Trust is a testamentary trust, granting court approval as required by Public Act 24-104), distributing all (or such portion as specified) of the property of the First Trust in further trust to the trustee(s) of the Second Trust, on the terms set forth in the proposed Second Trust instrument (Exhibit C);

H. Directing that the Second Trust be administered in accordance with its terms following the effective date of the decanting, and that the First Trust be terminated (if all property decanted) or continued (if partial decanting);

I. Granting the Petitioner-Fiduciary relief from liability and indemnification consistent with Conn. Gen. Stat. § 45a-545q;

J. Awarding Petitioner's reasonable attorney's fees and costs payable from the First Trust, consistent with the trustee's right to reimbursement of expenses properly incurred in the administration of the trust under Conn. Gen. Stat. § 45a-499zz, subject to the Probate Court's determination of reasonableness, and applicable law;

K. Retaining jurisdiction to enforce or further interpret this Decree; and

L. Granting such other and further relief as the Court deems just and equitable.

XIV. VERIFICATION

STATE OF CONNECTICUT )
) ss.: [____________]
COUNTY OF [____________] )

[________________________________], being first duly sworn, deposes and states: I am the Petitioner named in the foregoing Petition and am the Trustee and authorized fiduciary of the First Trust. I have read the Petition and know its contents. The matters stated are true to my own knowledge, except those stated upon information and belief, which I believe to be true. I declare under penalty of false statement pursuant to Conn. Gen. Stat. § 53a-157b that the foregoing is true and correct.

Executed on [__/__/____].

________________________________
[Trustee-Petitioner Signature]

Subscribed and sworn to before me this [____] day of [____________], 20[____].

________________________________
Notary Public / Commissioner of the Superior Court
My commission expires: [__/__/____]

XV. SIGNATURE OF ATTORNEY

Respectfully submitted,

Dated: [__/__/____]

________________________________
[Attorney Name]
[Firm Name]
[Address]
[Telephone] | [Email]
Connecticut Juris No. [____________]
Attorney for Petitioner-Fiduciary

XVI. CERTIFICATE OF SERVICE

I, [________________________________], certify that on [__/__/____] I served the foregoing Petition for Decanting, together with all Exhibits, upon the persons listed in Section IX above by the methods and on the dates indicated, in accordance with Conn. Gen. Stat. § 45a-545g, the Connecticut Probate Court Rules of Procedure, and applicable rules of the Probate Court.

________________________________
[Signature] Date: [__/__/____]

EXHIBITS

• Exhibit A: First Trust Instrument dated [__/__/____] and all amendments (and, if testamentary, certified copy of the will and certificate of probate)
• Exhibit B: Inventory of First Trust assets as of [__/__/____]
• Exhibit C: Proposed Second Trust Instrument
• Exhibit D: Redlined comparison of First Trust and Second Trust provisions
• Exhibit E: Tax analysis — GST inclusion ratio (Treas. Reg. § 26.2654-1; § 26.2601-1(b)(4)); marital, charitable, and income-tax classifications; Conn. Gen. Stat. § 45a-545s compliance
• Exhibit F: Notices given under Conn. Gen. Stat. § 45a-545g and proofs of service; signed waivers (if any)
• Exhibit G: Notice to Connecticut Attorney General (if charitable interest under § 45a-545n)
• Exhibit H: Fiduciary certification of authority and discretion classification
• Exhibit I: Special-needs analysis (if § 45a-545m applies)

CONNECTICUT-SPECIFIC PRACTICE NOTES

Newest UTDA jurisdiction. Connecticut adopted the Uniform Trust Decanting Act in 2024 through Public Act 24-104 (Substitute Senate Bill 272), effective January 1, 2025. Connecticut is among the most recent UTDA adopters. Practitioners may consult the Uniform Law Commission's official comments to the UTDA for interpretive guidance. The Act supplies express statutory decanting procedures for covered Connecticut trusts.

Court and venue depend on trust type. For a testamentary trust, Conn. Gen. Stat. § 45a-499o(a)(16) gives the Probate Courts sole original jurisdiction over a petition related to the exercise of a decanting power, subject to the other provisions of § 45a-499o. For an inter vivos trust, the Superior Court has original jurisdiction over all trust matters, while the Probate Courts have concurrent original jurisdiction over a decanting petition under § 45a-499o(d)(17). Probate Court venue is governed by § 45a-499p. Confirm the trust type, selected forum, and available relief before filing.

Settlor-trustees and beneficiary-trustees cannot decant. Under Conn. Gen. Stat. § 45a-545b(3), the "authorized fiduciary" expressly EXCLUDES a settlor-trustee or beneficiary-trustee. If the trustee is also the settlor or a beneficiary, a special fiduciary or co-trustee must be appointed to exercise the decanting power. This is a critical structural consideration in Connecticut.

Testamentary trusts require court approval. Under PA 24-104, an exercise of the decanting power with respect to a TESTAMENTARY TRUST (a trust created under a will) MUST be approved by the probate court. This is a significant difference from Colorado and most other UTDA states, where court approval is optional. For inter vivos (non-testamentary) trusts, court approval remains optional.

Two-tier discretion analysis is mission-critical. The threshold determination — whether the fiduciary has expanded or limited distributive discretion — dictates what changes are permissible. A HEMS standard, by itself, is "limited distributive discretion" under § 45a-545l(a). Section 45a-545l(c) bars changes to the specified beneficiary classes, the limited distribution standard (subject to subsection (d)), powers of appointment, and vested interests.

60-day notice is mandatory. Even where court approval is not sought, Conn. Gen. Stat. § 45a-545g requires a 60-day notice in record form to qualified beneficiaries, settlors (if living), powerholders, co-trustees, removal-power holders, and (if a charitable interest is implicated) the Connecticut Attorney General. The 60-day period may be waived in a signed record by all persons entitled to notice. Failure to comply may not invalidate the decanting if certain saving provisions apply (§ 45a-545v) but exposes the fiduciary to fiduciary-duty claims.

Charitable interest — Attorney General notice. Under § 45a-545n, the Connecticut Attorney General must be given notice when the First Trust contains a charitable interest. The Office of the Attorney General's Public Charities Unit (Conn. Gen. Stat. § 3-125) handles charitable-trust oversight in Connecticut.

Connecticut Uniform Trust Code interoperation. Connecticut adopted the Uniform Trust Code in 2019 (P.A. 19-137), effective January 1, 2020, codified at Conn. Gen. Stat. §§ 45a-499a et seq. The CT UTDA (effective January 1, 2025) builds on this UTC framework, using UTC-compatible definitions of "qualified beneficiary," "settlor," "trustee," and "principal place of administration."

Tax-related limitations — § 45a-545s. This section is the centerpiece of CT UTDA tax safety. It contains specific savings clauses for marital deduction trusts, charitable deduction trusts, GST grandfathered trusts, § 2503(c) minor's trusts, S-corp eligible trusts (QSSTs and ESBTs), and qualified retirement benefit "see-through" trusts. Every Connecticut decanting analysis must run through this section.

Special needs decanting — § 45a-545m. The CT UTDA permits decanting a non-special-needs trust into a supplemental needs trust where a beneficiary has a disability, subject to statutory protections. This is among the most powerful uses of the new statute, especially in light of Connecticut's high-need disability planning environment.

SOURCES AND REFERENCES

• Public Act No. 24-104 (Substitute Senate Bill No. 272), An Act Concerning Adoption of the Connecticut Uniform Trust Decanting Act (2024, effective January 1, 2025)
• Connecticut General Statutes §§ 45a-545a through 45a-545cc (Connecticut Uniform Trust Decanting Act)
• Connecticut General Statutes §§ 45a-499a et seq. (Connecticut Uniform Trust Code, P.A. 19-137, effective January 1, 2020)
• Connecticut General Statutes § 45a-98 (general powers of probate courts)
• Connecticut General Statutes § 45a-499zz (reimbursement of trustee expenses from trust property); § 45a-499yy (compensation of trustee)
• Connecticut Probate Court Rules of Procedure
• 26 U.S.C. § 2642 (GST inclusion ratio)
• Treas. Reg. § 26.2601-1(b)(4) (grandfathered GST trust modifications)
• Treas. Reg. § 26.2642-6 (qualified severance); Treas. Reg. § 26.2654-1 (certain trusts treated as separate trusts)
• Uniform Trust Decanting Act (2015) — official text and comments, Uniform Law Commission
• Connecticut Bar Association, Estates and Probate Section — 2024-2025 practice materials on PA 24-104
• Wiggin and Dana / Pullman & Comley — published advisories on the Connecticut Uniform Trust Decanting Act