Connecticut modernized its trust framework rapidly by adopting the Uniform Trust Code in 2020, followed by a directed trust act and a trust decanting act effective in 2025. The state allows dynasty trusts lasting up to 800 years and is the only state whose estate tax exemption matches the federal threshold. The Connecticut Trust Code is found at Conn. Gen. Stat. Sections 45a-499a and following.
This guide applies to both revocable and irrevocable trusts in Connecticut.
Where Connecticut trust law lives
Connecticut's trust statutes are codified in Conn. Gen. Stat. Sections 45a-499a and following. The directed trust act is at Sections 45a-500b and following. The trust decanting act, adopted through P.A. 24-104, became effective in 2025. Connecticut's UTC adoption replaced older trust provisions and brought the state into alignment with the majority of states using the UTC framework.
Accounting and notice requirements
Connecticut follows the standard UTC notice framework. Trustees must notify qualified beneficiaries within 60 days of accepting trusteeship of an irrevocable trust. Annual accounting to qualified beneficiaries is required under the default rules.
While the trust is revocable and the trust creator is alive and competent, the trustee's duties run primarily to the trust creator.
Trustee duties
Connecticut trustees must administer the trust in good faith, following the trust's terms and purposes, and in the interests of the beneficiaries. All standard UTC duties apply: loyalty, impartiality, prudent administration, and prudent investing. Compensation follows the trust instrument first, with reasonable compensation as the default.
What makes Connecticut different
800-year dynasty trusts. Connecticut allows trusts to last up to 800 years. While not perpetual, this is long enough for planning that spans dozens of generations. Combined with the state's recent modernization efforts, this makes Connecticut competitive with other Northeast trust jurisdictions.
Estate tax matching the federal exemption. Connecticut is the only state in the country that has conformed its estate tax exemption to the federal threshold. For 2026, this means the exemption is $15 million. Most other states with estate taxes have much lower exemptions (Maryland at $5 million, for example). This dramatically reduces the number of Connecticut estates subject to state-level estate tax.
Rapid modernization. Connecticut adopted the UTC in 2020, followed quickly by a directed trust act (Sections 45a-500b and following) and a trust decanting act (effective 2025). This three-year modernization sprint gave Connecticut a full set of modern trust planning tools. The directed trust act allows trust responsibilities to be divided among advisors and the trustee, while the decanting act allows trustees to move trust assets into new trusts with updated terms.
Standard UTC modification tools. Connecticut provides nonjudicial settlement agreements, court modification for changed circumstances, and modification by consent.
TrustHelm tip: Connecticut's recent UTC adoption means many existing trusts were created under the older legal framework. TrustHelm's AI-powered document analysis can help you understand how your trust's provisions interact with the new Connecticut Trust Code, especially around reporting obligations and modification options.
The most common Connecticut trust mistakes
Not funding the trust. As in every state, the most common mistake is failing to transfer assets into the trust properly.
Not knowing about the 2025 decanting act. Families with older Connecticut trusts may not realize they now have the option to decant into a new trust with modernized terms. This is a powerful tool that was not available before 2025.
Missing the 60-day notice deadline. When a trust becomes irrevocable, the trustee must notify qualified beneficiaries within 60 days.
Assuming the estate tax exemption is low. Unlike most states with estate taxes, Connecticut's exemption matches the federal threshold. Families sometimes over-plan for state estate tax that may not apply to them.
When to talk to an attorney
You should consult a Connecticut trust attorney if you want to explore the new decanting act for updating an older trust, if you are considering a directed trust structure, if you need to understand how the UTC applies to a trust created before 2020, or if you need help with estate tax planning.
If you need help finding a qualified estate planning attorney in your area, visit TrustHelm's Find an Attorney tool.
This guide is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for decisions about your trust.