(a) Except as otherwise provided by the trust or section 45a-520 with respect to charitable trusts, a Probate Court having jurisdiction under this section may terminate a trust, in whole or in part, on application therefor by the trustee, by any beneficiary entitled to income from the trust, or by such beneficiary's legal representative, after reasonable notice to all beneficiaries who are known and in being and who have vested or contingent interests in the trust, and after holding a hearing, if the court determines that all of the following apply: (1) The continuation of the trust is (A) uneconomic when the costs of operating the trust, probable income and other relevant factors are considered, or (B) not in the best interest of the beneficiaries; (2) the termination of the trust is equitable and practical; and (3) the current market value of the trust does not exceed the sum of one hundred fifty thousand dollars.

(b) If the Probate Court orders termination of the trust, in whole or in part, it shall direct that the principal and undistributed income be distributed to the beneficiaries in such manner as the Probate Court determines is equitable. The Probate Court may also make such other order as it deems necessary or appropriate to protect the interests of the beneficiaries.

(c) No trust may be terminated over the objection of its settlor or where the interest of the beneficiaries cannot be ascertained. The provisions of this section shall not apply to spendthrift trusts.

(d) A Probate Court may terminate a testamentary trust pursuant to this section if the Probate Court has jurisdiction over the accounts of the testamentary trustee. A Probate Court may terminate an inter vivos trust pursuant to this section if the trustee or settlor has his or its principal place of business in, or resides in, that probate district.

(P.A. 88-95; P.A. 94-98, S. 9; P.A. 03-183, S. 1; P.A. 13-81, S. 7.)

History: Sec. 45-79c transferred to Sec. 45a-484 in 1991; P.A. 94-98 amended Subsec. (a)(3) re maximum of current market value of trust by increasing $20,000 to $40,000; P.A. 03-183 amended Subsec. (a)(1) by making a technical change (a)(3) by increasing maximum current market value to $100,000; P.A. 13-81 increased maximum current market value from $100,000 to $150,000 in Subsec. (a)(3) and made technical changes.