It imposes on you the standard of investment which a prudent investor would follow considering all the circumstances involved. If this act does not apply you are governed in your powers only by the terms of the trust. If the Colorado Fiduciaries' Powers Act is applicable, you have the powers under the Act to the extent reasonably necessary to administer the trust except as limited by the trust instrument. Should any conflict arise between the powers in the trust instrument and those under the Act, you should favor those in the trust instrument. More importantly, remember that you can't delegate those acts which you personally should perform as trustee.
Courts are very strict with trustees.
Sometimes the trust instrument grants you broad powers or purports to relieve you of responsibilities which you would otherwise have, but you still have a duty to exercise the powers fairly and prudently. You may want to ask an attorney or accountant for help in determining the need for and in preparation of these returns as they do differ substantially from personal income tax returns. Quarterly tax deposits are often required of trusts. As with an individual taxpayer, a trustee must file returns on a calendar year basis and the return must be filed, and all taxes paid, by April 15. As an individual, you have your Social Security number which you use as an identification number on your personal tax returns.