For purposes of subparagraph (B) of subdivision (10) of section 45a-487k, a trust instrument is irrevocable regardless of whether the transferor retained any of the following rights, powers and interests:
(1) A transferor's power to veto a distribution from the trust;
(2) A power of appointment, other than a power to appoint to the transferor, the transferor's creditors, the transferor's estate or the creditors of the transferor's estate, exercisable by will or other written instrument of the transferor and effective only upon the transferor's death;
(3) The transferor's potential or actual receipt of income, including rights to such income retained in the trust instrument;
(4) The transferor's potential or actual receipt of income or principal from a charitable remainder unitrust or charitable remainder annuity trust, as such terms are defined in 26 USC 664, as amended from time to time; and the transferor's right, at any time and from time to time by written instrument delivered to the trustee, to release such transferor's retained interest in the trust, in whole or in part, in favor of a charitable organization that has or charitable organizations that have a succeeding beneficial interest in the trust;
(5) The transferor's receipt each year of a percentage, not to exceed five per cent, specified in the trust instrument of the initial value of the trust assets on their value determined from time to time pursuant to the trust instrument or of a fixed amount that, on an annual basis, does not exceed five per cent of the initial value of the trust assets;
(6) The transferor's potential or actual receipt or use of principal if the potential or actual receipt or use of principal would be the result of a qualified trustee acting:
(A) In the discretion of the qualified trustee;
(B) Pursuant to a standard that governs the distribution of principal and does not confer upon the transferor a substantially unfettered right to the receipt or use of the principal; or
(C) At the direction of a trust director described in section 45a-487l who is acting in the director's discretion, or pursuant to a standard that governs the distribution of principal and does not confer upon the transferor a substantially unfettered right to the receipt of or use of principal. For purposes of this subparagraph, a qualified trustee is presumed to have discretion with respect to the distribution of principal unless such discretion is expressly denied to the trustee by the terms of the trust instrument;
(7) The transferor's right to remove a trustee or director and to appoint a new trustee or director, other than a person who is a related or subordinate party with respect to the transferor within the meaning of 26 USC 672(c), as amended from time to time;
(8) The transferor's potential or actual use of real property held under a qualified personal residence trust within the meaning of the term as described in 26 USC 2702(c), as amended from time to time, or the transferor's possession and enjoyment of a qualified annuity interest within the meaning of the term as described in 26 CFR 25.2702-5(c)(8), as amended from time to time; and
(9) The transferor's potential or actual receipt of income or principal to pay, in whole or in part, income taxes due on income of the trust if the potential or actual receipt of income or principal is pursuant to a provision in the trust instrument that expressly provides for the payment of the taxes and if such potential or actual receipt of income or principal would be the result of a qualified trustee acting:
(A) In the qualified trustee's discretion; or
(B) At the direction of a trust director described in section 45a-487l who is acting in the director's discretion.
(P.A. 19-137, S. 103.)
History: P.A. 19-137 effective January 1, 2020.