Connecticut General Statutes Title 45A. Probate Courts and Procedure § 45a-499ii. Modification or termination of uneconomic trust

(a) After thirty days' notice to the qualified beneficiaries and such other beneficiaries as the trustee deems reasonable, the trustee of a noncharitable inter vivos trust consisting of trust property having a total value less than two hundred thousand dollars may terminate the trust if the trustee concludes that the value of the trust property is insufficient to justify the cost of administration.  The provisions of this subsection shall not apply to a trust established pursuant to 42 USC 1396p(d)(4)(A) or (C), as amended from time to time.

(b) The court may modify or terminate a noncharitable testamentary or inter vivos trust or remove the trustee of the trust and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration relative to the material purposes of the trust.  Notwithstanding the provisions of this subsection, the court may not terminate a testamentary or inter vivos trust established pursuant to 42 USC 1396p(d)(4)(A) or (C), as amended from time to time.  The court may only modify a trust established pursuant to 42 USC 1396p(d)(4)(A) or (C), as amended from time to time to ensure compliance with the requirements of federal law or to modify any individual's contingent beneficial interest that is available only after repayment to this state or another state for (1) medical assistance provided;  and (2) all claims for which this state would have claims against the estate of the deceased beneficiary that have not previously been paid or reimbursed.  The provisions of this subsection providing for repayment of medical assistance to the state for trusts established under 42 USC 1396p(d)(4)(A) or (C), as amended from time to time are presumed to be a material purpose of the trust.

(c) Upon termination of a trust under this section, the trustee shall distribute the trust property:  (1) In a manner consistent with the purposes of the trust;  or (2) if the termination is approved by the court, as directed by the court after considering the material purposes of the trust.

(d) The provisions of this section do not apply to an easement for conservation or preservation.