If you have a trust or are thinking of setting up a trust, there are some recent changes to Connecticut Trust law which should be considered. The new state trust law includes some exciting and positive changes which take effect on January 1, 2020.
The Uniform Trust Code (“The Code”) was first developed in 2014 by the National Conference of Commissioners on Uniform State Laws and was an attempt to form a comprehensive trust code that states throughout the US could adopt. The Code embodies many of the common principles of English common law. Many states adopted The Code, and now Connecticut has finally done so. Today there are more than thirty states that have adopted the Code.
- Directed Trust – the Grantor (the person setting up the trust) can now allow parties, other than the trustee, to have input into trust administration if desired.
- Asset Protection Trusts – these trusts may be beneficial for high net worth individuals who are in dangerous professions and want to protect their assets, yet still, be able to benefit from the income and principal of the assets during their lifetime.
- Length of time trust can last – previously the maximum length of time a trust could last would be about 90 years or 21 years after the death of an individual alive at the time the interest was created. Under The Code, a trust may now transfer for many generations and if the Grantor wishes, may now last several hundred years.
If you have a trust, please consult with your attorney on how the new Uniform Trust Code may affect your Trust. If you are interested in setting up a trust, The Code gives you additional planning options. For additional information please reach out to Attorney Maddona.