reglab/statecodes huggingface dataset:
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.2 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 15-1.2-101 — 15-1.2-804) › Part 7 - APPORTIONMENT AT BEGINNING AND END OF INCOME INTEREST (§§ 15-1.2-701 — 15-1.2-703) › Section 15-1.2-702 - Apportionment of receipts and disbursements when decedent dies or income interest begins

(1)
A fiduciary shall allocate an income receipt or disbursement, other than a receipt to which section
15-1.2-601 (2)
applies, to principal if its due date occurs before the date on which:
(a)
For an estate, the decedent died; or
(b)
For a trust or successive interest, an income interest begins.
(2)
If the due date of a periodic income receipt or disbursement occurs on or after the date on which a decedent died or an income interest begins, a fiduciary shall allocate the receipt or disbursement to income.
(3)
If an income receipt or disbursement is not periodic or has no due date, a fiduciary shall treat the receipt or disbursement under this section as accruing from day to day. The fiduciary shall allocate to principal the portion of the receipt or disbursement accruing before the date on which a decedent died or an income interest begins, and to income the balance.
(4)
A receipt or disbursement is periodic under subsections (2) and (3) of this section if:
(a)
The receipt or disbursement must be paid at regular intervals under an obligation to make payments; or
(b)
The payor customarily makes payments at regular intervals.
(5)
An item of income or obligation is due under this section on the date the payor is required to make a payment. If a payment date is not stated, there is no due date.
(6)
Distributions to shareholders or other owners from an entity to which section
15-1.2-401
applies are due:
(a)
On the date fixed by or on behalf of the entity for determining the persons entitled to receive the distribution;
(b)
If no date is fixed, on the date of the decision by or on behalf of the entity to make the distribution; or
(c)
If no date is fixed and the fiduciary does not know the date of the decision by or on behalf of the entity to make the distribution, on the date the fiduciary learns of the decision.
Added by 2021 Ch. 143, § 1, eff. 1/1/2022.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.2 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 15-1.2-101 — 15-1.2-804) › Part 7 - APPORTIONMENT AT BEGINNING AND END OF INCOME INTEREST (§§ 15-1.2-701 — 15-1.2-703) › Section 15-1.2-703 - Apportionment when income interest ends - definition

(1)
In this section, "undistributed income" means net income received on or before the date on which an income interest ends. The term does not include an item of income or expense which is due or accrued or net income that has been added or is required to be added to principal under the terms of the trust.
(2)
Except as otherwise provided in subsection (3) of this section, when a mandatory income interest of a beneficiary ends, the fiduciary shall pay the beneficiary's share of the undistributed income that is not disposed of under the terms of the trust to the beneficiary or, if the beneficiary does not survive the date the interest ends, to the beneficiary's estate.
(3)
If a beneficiary has an unqualified power to withdraw more than five percent of the value of a trust immediately before an income interest ends:
(a)
The fiduciary shall allocate to principal the undistributed income from the portion of the trust which may be withdrawn; and
(b)
Subsection (2) of this section applies only to the balance of the undistributed income.
(4)
When a fiduciary's obligation to pay a fixed annuity or a fixed fraction of the value of assets ends, the fiduciary shall prorate the final payment as required to preserve an income tax, gift tax, estate tax, or other tax benefit.
Added by 2021 Ch. 143,§1, eff. 1/1/2022.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.2 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 15-1.2-101 — 15-1.2-804) › Part 8 - MISCELLANEOUS PROVISIONS (§§ 15-1.2-801 — 15-1.2-804) › Section 15-1.2-801 - Uniformity of application and construction

In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
Added by 2021 Ch. 143,§1, eff. 1/1/2022.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.2 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 15-1.2-101 — 15-1.2-804) › Part 8 - MISCELLANEOUS PROVISIONS (§§ 15-1.2-801 — 15-1.2-804) › Section 15-1.2-802 - Relation to electronic signatures in global and national commerce act

This article 1.2 modifies, limits, or supersedes the federal "Electronic Signatures in Global and National Commerce Act",
15 U.S.C. sec. 7001
et seq., but does not modify, limit, or supersede section 101 (c) of that act,
15 U.S.C. sec. 7001(c)
, or authorize electronic delivery of any of the notices described in section 103 (b) of that act,
15 U.S.C. sec. 7003(b)
.
Added by 2021 Ch. 143,§1, eff. 1/1/2022.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.2 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 15-1.2-101 — 15-1.2-804) › Part 8 - MISCELLANEOUS PROVISIONS (§§ 15-1.2-801 — 15-1.2-804) › Section 15-1.2-803 - Application to trust or estate

(1)
Except as provided in the terms of the trust and subsection (2) of this section, this article 1.2 shall take effect on January 1, 2022.
(2)
(a)
This article 1.2 shall not apply to a trust established under a will or trust agreement existing and irrevocable on July 1, 2001, if a trustee of the trust has elected to apply the "Uniform Principal and Income Act" of this state that was in effect on June 30, 2001.
(b)
This article 1.2 shall not apply to a trust existing on July 1, 2001, in which no trustee had the authority to act under section
15-1-404
of the "Uniform Principal and Income Act", subparts 1 to 6 of part 4 of article
1
of this title 15, as it existed on or after July 1, 2001, unless a trustee of the trust elected to apply the "Uniform Principal and Income Act" as it existed on or after July 1, 2001.
Added by 2021 Ch. 143,§1, eff. 1/1/2022.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.2 - UNIFORM FIDUCIARY INCOME AND PRINCIPAL ACT (§§ 15-1.2-101 — 15-1.2-804) › Part 8 - MISCELLANEOUS PROVISIONS (§§ 15-1.2-801 — 15-1.2-804) › Section 15-1.2-804 - Severability

If any provision of this article 1.2 or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this article 1.2 which can be given effect without the invalid provision or application, and to this end the provisions of this article 1.2 are severable.
Added by 2021 Ch. 143,§1, eff. 1/1/2022.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.5 - COLORADO UNIFORM CUSTODIAL TRUST ACT (§§ 15-1.5-101 — 15-1.5-122) › Section 15-1.5-103 - Custodial trustee for future payment or transfer

(1)
A person having the right to designate the recipient of property payable or transferable upon a future event may create a custodial trust upon the occurrence of the future event by designating in writing the recipient, followed in substance by "as custodial trustee for (name of beneficiary) under the "Colorado Uniform Custodial Trust Act".
(2)
Persons may be designated as substitute or successor custodial trustees to whom the property must be paid or transferred in the order named if the first designated custodial trustee is unable or unwilling to serve.
(3)
A designation under this section may be made in a will, a trust, a deed, a multiple-party account, an insurance policy, an instrument exercising a power of appointment, or a writing designating a beneficiary of contractual rights. Otherwise, to be effective, the designation must be registered with or delivered to the fiduciary, payor, issuer, or obligor of the future right.
L. 99: Entire article added, p. 1213, § 1, effective August 4.
OFFICIAL COMMENT
This section permits a future custodial trustee to be designated to receive property for the beneficiary of a custodial trust to be effective upon the occurrence of a future event or transfer. To accommodate changes in circumstances during the passage of time, one or more successors or substitute custodial trustees can also be designated. The designation of the future custodial trustee and the beneficiary can be made in an instrument which is revocable or irrevocable depending upon the nature of the transaction or transfer. Any person designated as a future custodial trustee may decline to serve before the transfer occurs or may resign under section
15-1.5-113
after the transfer.
The source of this section is Section 3 of UTMA. The enacting state's rule against perpetuities may limit or affect the creation of a custodial trust upon the occurrence of a future event, but because the use of a custodial trust usually contemplates dispositions for the benefit of living persons, perpetuity problems should rarely arise.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.5 - COLORADO UNIFORM CUSTODIAL TRUST ACT (§§ 15-1.5-101 — 15-1.5-122) › Section 15-1.5-104 - Form and effect of receipt and acceptance by custodial trustee - jurisdiction

(1)
Obligations of a custodial trustee, including the obligation to follow upon directions of the beneficiary, arise under this article upon the custodial trustee's acceptance, express or implied, of the custodial trust property.
(2)
The custodial trustee's acceptance may be evidenced by a writing stating in substance:
CUSTODIAL TRUSTEE'S RECEIPT AND ACCEPTANCE
I, ____________ (name of custodial trustee) acknowledge receipt of the custodial trust property described below or in the attached instrument and accept the custodial trust as custodial trustee for ____________ (name of beneficiary) under the "Colorado Uniform Custodial Trust Act". I undertake to administer and distribute the custodial trust property pursuant to the "Colorado Uniform Custodial Trust Act". My obligations as custodial trustee are subject to the directions of the beneficiary unless the beneficiary is designated as, is, or becomes incapacitated. The custodial trust property consists of ____________.
Dated: _______________
_____________________
(Signature of Custodial Trustee)
(3)
Upon accepting custodial trust property, a person designated as custodial trustee under this article is subject to personal jurisdiction of the court with respect to any matter relating to the custodial trust.
L. 99: Entire article added, p. 1214, § 1, effective August 4.
OFFICIAL COMMENT
Although a custodial trust is created by a transfer that satisfies section
15-1.5-102
of the Act, the responsibility and obligations upon the trustee do not arise until the trustee has accepted the transfer. This detailed section is included to call the attention of the parties to the effective receipt and acceptance by the custodial trustee. Once a custodial trustee accepts the transfer of the custodial trust property, the custodial trustee assumes the obligation of a custodial trustee under this Act. The acceptance can be expressed or implied, but it is recommended that the written acceptance provided for in section 15-1.5-104(2) be utilized. By the acceptance the custodial trustee submits to the personal jurisdiction of the courts of the enacting state for the purpose of the custodial trust, despite subsequent relocation of the parties or of the custodial trust property. The principal sources of these provisions are Sections 8 and 9 of UTMA and the analogous provisions under the Uniform Probate Code, Sections 3-602, 5-208, 5-307, 7-103.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.5 - COLORADO UNIFORM CUSTODIAL TRUST ACT (§§ 15-1.5-101 — 15-1.5-122) › Section 15-1.5-105 - Transfer to custodial trustee by fiduciary or obligor - facility of payment

(1)
Unless otherwise directed by an instrument designating a custodial trustee pursuant to section
15-1.5-103
, a person, including a fiduciary other than a custodial trustee, who holds property of or owes a debt to an incapacitated individual not having a conservator may make a transfer to an adult member of the beneficiary's family or to a trust company as custodial trustee for the use and benefit of the incapacitated individual. If the value of the property or the debt exceeds thirty thousand dollars, the transfer is not effective unless authorized by the court.
(2)
A written acknowledgment of delivery, signed by a custodial trustee, is a sufficient receipt and discharge for property transferred to the custodial trustee pursuant to this section.
L. 99: Entire article added, p. 1214, § 1, effective August 4.
OFFICIAL COMMENT
This section is in the nature of a facility-of-payment provision that permits persons owing money to an incapacitated individual to discharge a fixed obligation by a payment to a custodial trustee under this Act. The section does not authorize the custodial trustee to settle claims for disputed amounts but only to acknowledge an effective receipt of property paid or delivered. It is based primarily on Sections 6 and 7 of UTMA and includes the protections of Section 8 of UTMA as well. It permits a custodial trust to be established as a substitute for a conservatorship to receive payments due an incapacitated individual. Also, see section
15-1.5-111
, which protects transferors and other third parties dealing with the custodial trustee.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.5 - COLORADO UNIFORM CUSTODIAL TRUST ACT (§§ 15-1.5-101 — 15-1.5-122) › Section 15-1.5-106 - Multiple beneficiaries - separate custodial trusts - survivorship

(1)
Beneficial interests in a custodial trust created for multiple beneficiaries are deemed to be separate custodial trusts of equal undivided interests for each beneficiary. Except in a transfer or declaration for use and benefit of husband and wife, for whom survivorship is presumed, a right of survivorship does not exist unless the instrument creating the custodial trust specifically provides for survivorship.
(2)
Custodial trust property held under this article by the same custodial trustee for the use and benefit of the same beneficiary may be administered as a single custodial trust.
(3)
A custodial trustee of custodial trust property held for more than one beneficiary shall separately account to each beneficiary pursuant to sections
15-1.5-107
and
15-1.5-115
for the administration of the custodial trust.
L. 99: Entire article added, p. 1214, § 1, effective August 4.
OFFICIAL COMMENT
This Act, unlike UTMA, does not preclude a custodial trust for more than one beneficiary. Adult persons creating custodial trusts are likely to set up custodial trusts in various forms, e.g., parents may wish to set up a custodial trust for their children or for themselves, then for a spouse, etc. However, the interests of each beneficiary are separate and the custodial trustee is obligated under subsection (3) to account separately to each beneficiary for administration of the beneficiary's interest in the custodial trust.
Subsection (2) allows a custodial trustee who is administering multiple custodial trusts for the same beneficiary to administer the custodial trusts as a single custodial trust. For example, if multiple trusts are created for an incapacitated beneficiary, the custodial trustee can administer them as a single custodial trust.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.5 - COLORADO UNIFORM CUSTODIAL TRUST ACT (§§ 15-1.5-101 — 15-1.5-122) › Section 15-1.5-108 - General powers of custodial trustee

(1)
A custodial trustee, acting in a fiduciary capacity, has all the rights and powers over custodial trust property which an unmarried adult owner has over individually owned property, but a custodial trustee may exercise those rights and powers in a fiduciary capacity only.
(2)
This section does not relieve a custodial trustee from liability for a violation of section
15-1.5-107
.
L. 99: Entire article added, p. 1216, § 1, effective August 4.
OFFICIAL COMMENT
This section is taken from Section 13 of UTMA. It grants the trustee very broad powers over the property, subject, however, to the Prudent Person Rule and to the obligations set out in the Act. An alternative approach to subsection (1) that might be taken by an enacting state is to refer to the existing statutes granting powers to a trustee, such as the Uniform Trustee's Powers Act. For example: [A custodial trustee has the powers of a trustee under the Uniform Trustee's Powers Act.]
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.5 - COLORADO UNIFORM CUSTODIAL TRUST ACT (§§ 15-1.5-101 — 15-1.5-122) › Section 15-1.5-111 - Exemption of third persons from liability

(1)
A third person in good faith and without a court order may act on instructions of, or otherwise deal with, a person purporting to make a transfer as, or purporting to act in the capacity of, a custodial trustee. In the absence of knowledge to the contrary, the third person is not responsible for determining:
(a)
The validity of the purported custodial trustee's designation;
(b)
The propriety of, or the authority under this article for, any action of the purported custodial trustee;
(c)
The validity or propriety of an instrument executed or instruction given pursuant to this article either by the person purporting to make a transfer or declaration or by the purported custodial trustee; or
(d)
The propriety of the application of property vested in the purported custodial trustee.
L. 99: Entire article added, p. 1217, § 1, effective August 4.
OFFICIAL COMMENT
This section is based upon Section 16 of the UTMA and protects third persons who deal in good faith with the custodial trustee.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.5 - COLORADO UNIFORM CUSTODIAL TRUST ACT (§§ 15-1.5-101 — 15-1.5-122) › Section 15-1.5-112 - Liability to third persons

(1)
A claim based on a contract entered into by a custodial trustee acting in a fiduciary capacity, an obligation arising from the ownership or control of custodial trust property, or a tort committed in the course of administering the custodial trust may be asserted by a third person against the custodial trust property by proceeding against the custodial trustee in a fiduciary capacity, whether or not the custodial trustee or the beneficiary is personally liable.
(2)
A custodial trustee is not personally liable to a third person:
(a)
On a contract properly entered into in a fiduciary capacity unless the custodial trustee fails to reveal that capacity or to identify the custodial trust in the contract; or
(b)
For an obligation arising from control of custodial trust property or for a tort committed in the course of the administration of the custodial trust unless the custodial trustee is personally at fault.
(3)
A beneficiary is not personally liable to a third person for an obligation arising from beneficial ownership of custodial trust property or for a tort committed in the course of administration of the custodial trust unless the beneficiary is personally in possession of the custodial trust property giving rise to the liability or is personally at fault.
(4)
Subsections (2) and (3) of this section do not preclude actions or proceedings to establish liability of the custodial trustee or beneficiary to the extent the person sued is protected as the insured by liability insurance.
L. 99: Entire article added, p. 1218, § 1 effective August 4.
OFFICIAL COMMENT
This section is patterned after Section 17 of the UTMA and that section in turn was based upon Sections 5-428 and 7-306 of the Uniform Probate Code limiting the liability of conservators and trustees. See also Restatement of Trusts, 2d Sections 265 and 277. The effect of this section is to limit the claims of third parties to recourse against custodial trust property as both the custodial trustee and the beneficiary are protected from personal liability absent personal fault on their part. This section does not alter the obligations between the custodial trustee and the beneficiary arising out of the administration of the estate and the accounting for that administration.
There may be cases in which a custodial trustee or beneficiary may have a right to possession of custodial trust property and may insure against liability arising out of possession or control of the property as a named insured, e.g., under homeowner's or automobile liability insurance. In such a case, the beneficiary should be permitted as a party defendant under subsection (4) but only to the extent of the protection of the liability insurance.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.5 - COLORADO UNIFORM CUSTODIAL TRUST ACT (§§ 15-1.5-101 — 15-1.5-122) › Section 15-1.5-114 - Expenses, compensation, and bond of custodial trustee

(1)
Except as otherwise provided in the instrument creating the custodial trust, in an agreement with the beneficiary, or by court order, a custodial trustee:
(a)
Is entitled to reimbursement from custodial trust property for reasonable expenses incurred in the performance of fiduciary services;
(b)
Has a noncumulative election, to be made no later than six months after the end of each calendar year, to charge a reasonable compensation for fiduciary services performed during that year; and
(c)
Need not furnish a bond or other security for the faithful performance of fiduciary duties.
L. 99: Entire article added, p. 1219, § 1, effective August 4.
OFFICIAL COMMENT
This section follows the pattern of Section 15 of the UTMA except it does subject the arrangements for payment of expenses, compensation, and bond to provisions in the custodial trust instrument or agreement of the beneficiary or court order.
As in UTMA, the provisions with regard to compensation are designed to avoid imputed compensation to the custodian who waives compensation and also to avoid the accumulation of claims for compensation until the termination of the custodial trust. Although the ability to control these matters by the trust instrument or agreement of the beneficiary seems to be implied, as was assumed in UTMA, it is here expressly stated because of the possibility of informal arrangements with persons as trustees.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.5 - COLORADO UNIFORM CUSTODIAL TRUST ACT (§§ 15-1.5-101 — 15-1.5-122) › Section 15-1.5-117 - Distribution on termination

(1)
Upon termination of a custodial trust, the custodial trustee shall transfer the unexpended custodial trust property:
(a)
To the beneficiary, if not incapacitated or deceased;
(b)
To the conservator or other recipient designated by the court for an incapacitated beneficiary; or
(c)
Upon the beneficiary's death, in the following order:
(I)
As last directed in a writing signed by the deceased beneficiary while not incapacitated and received by the custodial trustee during the life of the deceased beneficiary;
(II)
To the survivor of multiple beneficiaries if survivorship is provided for pursuant to section
15-1.5-106
;
(III)
As designated in the instrument creating the custodial trust; or
(IV)
To the estate of the deceased beneficiary.
(2)
If, when the custodial trust would otherwise terminate, the distributee is incapacitated, the custodial trust continues for the use and benefit of the distributee as beneficiary until the incapacity is removed or the custodial trust is otherwise terminated.
(3)
Death of a beneficiary does not terminate the power of the custodial trustee to discharge obligations of the custodial trustee or beneficiary incurred before the termination of the custodial trust.
L. 99: Entire article added, p. 1221, § effective August 4.
OFFICIAL COMMENT
This section controls distribution of the custodial trust property when the custodial trust is terminated under section
15-1.5-102(5)
. It is designed to provide for efficient and certain distribution without judicial proceedings. Subsection (1)(c) is an important provision for avoiding complications on distribution and provides that distribution may be controlled first, by the direction of the deceased beneficiary or second, by the custodial trust instrument (see sections
15-1.5-102
,
15-1.5-106
, and
15-1.5-118
) and, only if no effective prior designation for the payment or distribution of the property on the death of the beneficiary has been made, shall it pass through the beneficiary's estate.
The direction to the custodial trustee by the beneficiary, who is not incapacitated, for distribution on termination of the custodial trust may be in any written form clearly identifying the distributee. For example, the following direction would be adequate under the statute:
I, ____ (name of beneficiary) hereby direct ____ (name of trustee) as custodial trustee, to transfer and pay the unexpended balance of the custodial trust property of which I am beneficiary to ____ as distributee on the termination of the trust at my death. In the event of the prior death of ____ above named as distributee, I designate ____ as distributee of the custodial trust property. Signed (signature) _____ Beneficiary Date _______ Receipt Acknowledged (signature) __________ Custodial Trustee Date _________
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.5 - COLORADO UNIFORM CUSTODIAL TRUST ACT (§§ 15-1.5-101 — 15-1.5-122) › Section 15-1.5-119 - Applicable law

(1)
This article applies to a transfer or declaration creating a custodial trust that refers to this article if, at the time of the transfer or declaration, the transferor, beneficiary, or custodial trustee is a resident of or has its principal place of business in this state or custodial trust property is located in this state. The custodial trust remains subject to this article despite a later change in residence or principal place of business of the transferor, beneficiary, or custodial trustee, or removal of the custodial trust property from this state.
(2)
A transfer made pursuant to an act of another state substantially similar to this article is governed by the law of that state and may be enforced in this state.
L. 99: Entire article added, p. 1224, § 1, effective August 4.
OFFICIAL COMMENT
This section is designed to avoid confusion in the event a party or assets are removed from the state.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.5 - COLORADO UNIFORM CUSTODIAL TRUST ACT (§§ 15-1.5-101 — 15-1.5-122) › Section 15-1.5-120 - Uniformity of application and construction

This article shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this article among states enacting it.
L. 99: Entire article added, p. 1225, § 1, effective August 4.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.5 - COLORADO UNIFORM CUSTODIAL TRUST ACT (§§ 15-1.5-101 — 15-1.5-122) › Section 15-1.5-121 - Short title

This article may be cited as the "Colorado Uniform Custodial Trust Act".
L. 99: Entire article added, p. 1225, § 1, effective August 4.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › FIDUCIARY (§§ 15-1-101 — 15-1.5-122) › Article 1.5 - COLORADO UNIFORM CUSTODIAL TRUST ACT (§§ 15-1.5-101 — 15-1.5-122) › Section 15-1.5-122 - Severability

If any provision of this article or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this article which can be given effect without the invalid provision or application, and to this end the provisions of this article are severable.
L. 99: Entire article added, p. 1225, § 1, effective August 4.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › POWERS OF APPOINTMENT (§§ 15-2-101 — 15-2.5-603) › Article 2 - [Repealed] (§ 15-2-101) › Section 15-2-101 - to 15-2-304 - [Repealed]

(1) This article was numbered as articles 1 to 3 of chapter 107, C.R.S. 1963.
(2) Section 15-2-304 provided for the repeal of this article, effective July 1, 2015. (See L. 2014, pp. 782, 783.)
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › POWERS OF APPOINTMENT (§§ 15-2-101 — 15-2.5-603) › Article 2.5 - UNIFORM POWERS OF APPOINTMENT ACT (§§ 15-2.5-101 — 15-2.5-603) › Part 1 - GENERAL PROVISIONS (§§ 15-2.5-101 — 15-2.5-104) › Section 15-2.5-101 - Short title

This article may be cited as the "Colorado Uniform Powers of Appointment Act".
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 772, § 1, effective 7/1/2015.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › POWERS OF APPOINTMENT (§§ 15-2-101 — 15-2.5-603) › Article 2.5 - UNIFORM POWERS OF APPOINTMENT ACT (§§ 15-2.5-101 — 15-2.5-603) › Part 1 - GENERAL PROVISIONS (§§ 15-2.5-101 — 15-2.5-104) › Section 15-2.5-103 - Governing law

(1)
Unless the terms of the instrument creating a power of appointment manifest a contrary intent:
(a)
The creation, revocation, or amendment of the power is governed by the law of the donor's domicile at the relevant time; and
(b)
The exercise, release, or disclaimer of the power, or the revocation or amendment of the exercise, release, or disclaimer of the power, is governed by the law of the powerholder's domicile at the relevant time.
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 774, § 1, effective 7/1/2015.
OFFICIAL COMMENT
This section provides default rules for determining the law governing the creation and exercise of, and related matters concerning, a power of appointment.
Unless the terms of the instrument creating the power provide otherwise, the actions of the donor--the creation, revocation, or amendment of the power--are governed by the law of the donor's domicile; and the actions of the powerholder--the exercise, release, or disclaimer, or the revocation or amendment thereof--are governed by the law of the powerholder's domicile.
In each case, the domicile is determined
at the relevant time
. For example, a donor's creation of a power is governed by the law of the donor's domicile at the time of the power's creation; and a donor's amendment of a power is governed by the law of the donor's domicile at the time of the amendment. Similarly, a powerholder's exercise of a power is governed by the law of the powerholder's domicile at the time of the exercise.
The standard "public policy" rules of choice of law naturally continue to apply. See, for example, Restatement Second of Conflict of Laws § 187.
Subsection (1)(b) is a departure from older law. The older position was that the law of the donor's domicile governs acts both of the donor (such as the creation of the power) and of the powerholder (such as the exercise of the power).
See, e.g., Beals v. State Street Bank & Trust Co
., 326 N.E.2d 896 (Mass. 1975);
Bank of New York v. Black
, 139 A.2d 393 (N.J. 1958).
Subsection (1)(b) adopts the modern view that acts of the powerholder should be governed by the law of the powerholder's domicile, because that is the law the powerholder (or the powerholder's lawyer) is likely to know. This approach is supported by Restatement Third of Property: Wills and Other Donative Transfers § 19.1, Comment e; Restatement Second of Conflict of Laws § 275, Comment c. It is also supported by
Estate of McMullin
, 417 A.2d 152 (Pa. 1980);
White v. United States
, 680 F.2d 1156 (7th Cir. 1982).
See generally, Restatement Third of Property: Wills and Other Donative Transfers § 19.1, Comment e; Restatement Second of Conflict of Laws § 275, Comment c.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › POWERS OF APPOINTMENT (§§ 15-2-101 — 15-2.5-603) › Article 2.5 - UNIFORM POWERS OF APPOINTMENT ACT (§§ 15-2.5-101 — 15-2.5-603) › Part 1 - GENERAL PROVISIONS (§§ 15-2.5-101 — 15-2.5-104) › Section 15-2.5-104 - Supplementation by common law and principles of equity

Unless displaced by the particular provisions of this article, the principles of law and equity supplement its provisions.
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 774, § 1, effective 7/1/2015.
OFFICIAL COMMENT
This act codifies those portions of the law of powers of appointment that are most amenable to codification. The act is supplemented by the common law and principles of equity. To determine the common law and principles of equity in a particular state, a court might look first to prior case law in the state and to more general sources, such as the Restatement Third of Property: Wills and Other Donative Transfers. The common law is not static but includes the contemporary and evolving rules of decision developed by the courts in exercise of their power to adapt the law to new situations and changing conditions. It also includes the traditional and broad equitable jurisdiction of the court, which the act in no way restricts.
The statutory text of the act is also supplemented by these Comments, which, like the Comments to any Uniform Act, may be relied on as a guide for interpretation.
See Stern Oil Co. v. Brown
, 817 N.W.2d 395 (S.D. 2012) (interpreting Uniform Commercial Code);
Isbell v. Commercial Investment Associates, Inc.
, 644 S.E.2d 72 (Va. 2007) (interpreting Uniform Residential Landlord Tenant Act);
Yale University v. Blumenthal
, 621 A.2d 1304 , 1307 (Conn. 1993) (interpreting Uniform Management of Institutional Funds Act);
GMAC v. Anaya
, 703 P.2d 169 , 172 (N.M. 1985) (interpreting Uniform Commercial Code and describing the Comments as "persuasive" though "not binding"); Jack Davies, Legislative Law and Process in a Nutshell § 59-4 (3d ed. 2007).
The text of and Comment to this section are based on Uniform Trust Code § 106 and its accompanying Comment.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › POWERS OF APPOINTMENT (§§ 15-2-101 — 15-2.5-603) › Article 2.5 - UNIFORM POWERS OF APPOINTMENT ACT (§§ 15-2.5-101 — 15-2.5-603) › Part 2 - CREATION, REVOCATION, AND AMENDMENT OFPOWER OF APPOINTMENT (§§ 15-2.5-201 — 15-2.5-206) › Section 15-2.5-202 - Nontransferability

A powerholder may not transfer a power of appointment. If a powerholder dies without exercising or releasing a power, the power lapses.
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 775, § 1, effective 7/1/2015.
OFFICIAL COMMENT
A power of appointment is nontransferable. The powerholder may not transfer the power to another person. (On the ability of the powerholder to exercise the power by conferring on a permissible appointee a new power of appointment over the appointive property, see Section 305.) If the powerholder dies without exercising or releasing the power, the power lapses. (If a power is held by multiple powerholders, which is rare, on the death of one powerholder that individual's power lapses but the power continues to be held by the surviving powerholders.) If the powerholder partially releases the power and dies without exercising the remaining part, the unexercised part of the power lapses. The power does not pass through the powerholder's estate to the powerholder's successors in interest.
The ability of an agent or guardian to create, revoke, exercise, or revoke the exercise of a power of appointment on behalf of a principal or ward is determined by other law, such as the Uniform Power of Attorney Act or the Uniform Guardianship and Protective Proceedings Act.
The rule of this section is consistent with, and this Comment draws on, the Restatement Third of Property: Wills and Other Donative Transfers § 17.1, Comment b.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › POWERS OF APPOINTMENT (§§ 15-2-101 — 15-2.5-603) › Article 2.5 - UNIFORM POWERS OF APPOINTMENT ACT (§§ 15-2.5-101 — 15-2.5-603) › Part 2 - CREATION, REVOCATION, AND AMENDMENT OFPOWER OF APPOINTMENT (§§ 15-2.5-201 — 15-2.5-206) › Section 15-2.5-203 - Presumption of unlimited authority

(1)
Subject to section
15-2.5-205
, and unless the terms of the instrument creating a power of appointment manifest a contrary intent, the power is:
(a)
Presently exercisable;
(b)
Exclusionary; and
(c)
Except as otherwise provided in section
15-2.5-204
, general.
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 775, § 1, effective 7/1/2015.
OFFICIAL COMMENT
In determining which type of power of appointment is created, the general principle of construction, articulated in this section, is that a power falls into the category giving the powerholder the maximum discretionary authority except to the extent the terms of the instrument creating the power restrict the powerholder's authority. Maximum discretion confers on the powerholder the flexibility to alter the donor's disposition in response to changing conditions.
In accordance with this presumption of unlimited authority, a power is general unless the terms of the creating instrument specify that the powerholder cannot exercise the power in favor of the powerholder, the powerholder's estate, or the creditors of either. A power is presently exercisable unless the terms of the creating instrument specify that the power can only be exercised at some later time or in some document such as a will that only takes effect at some later time. A power is exclusionary unless the terms of the creating instrument specify that a permissible appointee must receive a certain amount or portion of the appointive assets if the power is exercised.
This general principle of construction applies, unless the terms of the instrument creating the power of appointment provide otherwise. A well-drafted instrument intended to create a nongeneral or testamentary or nonexclusionary power will use clear language to achieve the desired objective. Not all instruments are well-drafted, however. A court may have to construe the terms of the instrument to discern the donor's intent. For principles of construction applicable to the creation of a power of appointment, see Restatement Third of Property: Wills and Other Donative Transfers Chapters 17 and 18, and the accompanying Commentary, containing many examples.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › POWERS OF APPOINTMENT (§§ 15-2-101 — 15-2.5-603) › Article 2.5 - UNIFORM POWERS OF APPOINTMENT ACT (§§ 15-2.5-101 — 15-2.5-603) › Part 2 - CREATION, REVOCATION, AND AMENDMENT OFPOWER OF APPOINTMENT (§§ 15-2.5-201 — 15-2.5-206) › Section 15-2.5-204 - Exception to presumption of unlimited authority

(1)
Unless the terms of the instrument creating a power of appointment manifest a contrary intent, the power is nongeneral if:
(a)
The power is exercisable only at the powerholder's death; and
(b)
The permissible appointees of the power are a defined and limited class that does not include the powerholder's estate, the powerholder's creditors, or the creditors of the powerholder's estate.
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 775, § 1, effective 7/1/2015.
OFFICIAL COMMENT
This section is designed to remedy a recurring drafting mistake. A testamentary power of appointment created in a defined and limited class that happens to include the powerholder is usually intended to be a nongeneral power. For example, a testamentary power created in one of the donor's descendants (such as the donor's child or grandchild) to appoint among the donor's "descendants" or "issue" is typically intended to be a nongeneral power. See, for example, PLR 201229005 (stating the ruling of the Internal Revenue Service that a testamentary power of appointment in the donor's son, exercisable in favor of the donor's "issue," is a nongeneral power for purposes of
26 U.S.C. §2041
) . Accordingly, the presumption of this Section is that such a power is nongeneral.
On the meaning of the well-accepted term of art "defined and limited," see the Comment to Section 205. See also Restatement Third of Property: Wills and Other Donative Transfers § 17.5, Comment c.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › POWERS OF APPOINTMENT (§§ 15-2-101 — 15-2.5-603) › Article 2.5 - UNIFORM POWERS OF APPOINTMENT ACT (§§ 15-2.5-101 — 15-2.5-603) › Part 2 - CREATION, REVOCATION, AND AMENDMENT OFPOWER OF APPOINTMENT (§§ 15-2.5-201 — 15-2.5-206) › Section 15-2.5-206 - Power of the donor to revoke or amend

(1)
A donor may revoke or amend a power of appointment only to the extent that:
(a)
The instrument creating the power is revocable by the donor; or
(b)
The donor reserves a power of revocation or amendment in the instrument creating the power of appointment.
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 776, § 1, effective 7/1/2015.
OFFICIAL COMMENT
The donor of a power of appointment has the authority to revoke or amend the power only to the extent the instrument creating the power is revocable by the donor or the donor reserves a power of revocation or amendment in the instrument creating the power.
For example, the donor's power to revoke or amend a revocable inter vivos trust carries with it the authority to revoke or amend any power of appointment created in the trust. However, to the extent an exercise of the power removes appointive property from the trust, the donor's authority to revoke or amend the power is eliminated, unless the donor expressly reserved authority to revoke or amend any transfer from the trust after the transfer is completed.
If an irrevocable inter vivos trust confers a presently exercisable power on someone who is not the settlor of the trust (the settlor being the donor of the power), the donor lacks authority to revoke or amend the power, except to the extent the donor reserved the authority to do so. If the donor did reserve the authority to revoke or amend the power, that authority is only effective until the powerholder irrevocably exercises the power.
If the same individual is both the donor and the powerholder, the donor in his or her capacity as powerholder can indirectly revoke or amend the power by a partial or total release of the power. See Section 402. After the power has been irrevocably exercised, however, the donor as donor is in no different position in regard to revoking or amending the exercise of the power than the donor would be if the donor and powerholder were different individuals.
The ability of an agent or guardian to revoke or amend a power of appointment on behalf of a principal or ward is determined by other law, such as the Uniform Power of Attorney Act or the Uniform Guardianship and Protective Proceedings Act.
Other law of the state may permit the reformation of an otherwise irrevocable instrument. See, for example, Uniform Probate Code § 2-805; Uniform Trust Code § 415.
The rule of this section is consistent with, and this Comment draws on, Restatement Third of Property: Wills and Other Donative Transfers § 18.2 and the accompanying Commentary.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › POWERS OF APPOINTMENT (§§ 15-2-101 — 15-2.5-603) › Article 2.5 - UNIFORM POWERS OF APPOINTMENT ACT (§§ 15-2.5-101 — 15-2.5-603) › Part 3 - EXERCISE OF POWER OF APPOINTMENT (§§ 15-2.5-301 — 15-2.5-314) › Section 15-2.5-312 - Disposition of unappointed property if partial appointment to taker in default

Unless the terms of the instrument creating or exercising a power of appointment manifest a contrary intent, if the powerholder makes a valid partial appointment to a taker in default of appointment, the taker in default of appointment may share fully in unappointed property.
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 779, § 1, effective 7/1/2015.
OFFICIAL COMMENT
If a powerholder makes a valid partial appointment to a taker in default, leaving some property unappointed, there is a question about whether that taker in default may also fully share in the unappointed property. In the first instance, the intent of the
donor
controls. In the absence of any indication of the donor's intent, it is assumed that the donor intends that the taker can take in both capacities. This rule presupposes that the donor contemplated that the taker in default who is an appointee could receive more of the appointive assets than a taker in default who is not an appointee. The donor can defeat this rule by manifesting a contrary intent in the instrument creating the power of appointment, thereby restricting the powerholder's freedom to benefit an appointee who is also a taker in default in both capacities. If the donor has not so manifested a contrary intent, the
powerholder
is free to exercise the power in favor of a taker in default who is a permissible appointee. Unless the powerholder manifests a contrary intent in the terms of the instrument exercising the power, it is assumed that the powerholder does not intend to affect in any way the disposition of any unappointed property.
The rule of this section is consistent with, and this Comment draws on, Restatement Third of Property: Wills and Other Donative Transfers § 19.24 and the accompanying Commentary.