(a) For the purposes of this section, “interested persons” means persons whose consent would be required in order to achieve a binding settlement were the settlement to be approved by the court.
(b) Except as provided in subsections (c) and (e) of this section, interested persons may enter into a binding, nonjudicial settlement agreement with respect to any matter involving an inter vivos trust.
(c) A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes terms and conditions that could be properly approved by the court under sections 45a-487j to 45a-487t, inclusive, and 45a-499a to 45a-500s, inclusive, or other applicable law.
(d) Matters that may be resolved by a nonjudicial settlement agreement include: (1) The interpretation or construction of the terms of the trust; (2) the approval of a trustee's report or accounting; (3) direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power; (4) the resignation or appointment of a trustee and the determination of a trustee's compensation; (5) transfer of a trust's principal place of administration; and (6) liability of a trustee for an action relating to the trust.
(e) A nonjudicial settlement agreement may not modify or terminate an irrevocable trust. Such a modification or termination may be accomplished only under the provisions of sections 45a-499dd to 45a-499kk, inclusive.
(f) An interested person may request the court to approve a nonjudicial settlement agreement to determine whether the representation provided pursuant to sections 45a-499q to 45a-499u, inclusive, was adequate and to determine whether the agreement contains terms and conditions the court could have properly approved.
(P.A. 19-137, S. 11.)
History: P.A. 19-137 effective January 1, 2020.