reglab/statecodes huggingface dataset:
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 3 - REPRESENTATION (§§ 15-5-301 — 15-5-305) › Section 15-5-301 - Representation - basic effect

(1)
Notice to a person who may represent and bind another person pursuant to this part 3 has the same effect as if notice were given directly to the other person.
(2)
The consent of a person who may represent and bind another person pursuant to this part 3 is binding on the person represented unless the person represented objects to the representation before the consent would otherwise have become effective.
(3)
A person who pursuant to this part 3 may represent a settlor who lacks capacity may receive notice and give a binding consent on the settlor's behalf.
(4)
A settlor may not represent and bind a beneficiary pursuant to this part 3 with respect to the termination or modification of a trust pursuant to section
15-5-411 (1)
.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1158, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 3 - REPRESENTATION (§§ 15-5-301 — 15-5-305) › Section 15-5-301.5 - Scope of representative's authority and duty of certain representatives - definitions

(1)
As used in this section, unless the context otherwise requires, "representative" means a representative acting pursuant to section
15-5-302
,
15-5-303
,
15-5-304
, or
15-5-305
.
(2)
A representative may receive notice, give consent, and otherwise represent, bind, and act on behalf of the individual represented with respect to any matter arising pursuant to this article 5, regardless of whether a judicial proceeding concerning the trust is pending.
(3)
In making decisions, a representative may consider general benefits accruing to the living members of the represented individual's family.
(4)
A representative acting pursuant to section
15-5-303 (1)(f)
or section
15-5-305
shall act in good faith on behalf of the person represented. As used in this subsection (4), with respect to representatives acting pursuant to sections
15-5-303 (1)(f)
and
15-5-305
only, "good faith" means honesty in fact.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1158, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 3 - REPRESENTATION (§§ 15-5-301 — 15-5-305) › Section 15-5-302 - Representation by a holder of general testamentary power of appointment

To the extent that there is no conflict of interest between the holder of a general testamentary power of appointment and the persons represented with respect to the particular question or dispute, the holder may represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to the power. For persons bound by orders binding holders of a presently exercisable general power of appointment, see section
15-10-403 (3)(a)
.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1159, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 3 - REPRESENTATION (§§ 15-5-301 — 15-5-305) › Section 15-5-303 - Representation by fiduciaries and parents

(1)
To the extent there is no conflict of interest between the representative and the person represented or among those being represented with respect to a particular question or dispute:
(a)
A conservator may represent and bind the protected person whose estate the conservator controls;
(b)
A guardian may represent and bind the ward if a conservator of the ward's estate has not been appointed;
(c)
An agent having authority to act with respect to the particular question or dispute may represent and bind the principal;
(d)
A trustee may represent and bind the beneficiaries of the trust;
(e)
A personal representative of a decedent's estate may represent and bind persons interested in the estate; and
(f)
A parent may represent and bind, or appoint another person to represent and bind, the parent's minor or unborn child if a conservator or guardian for the child has not been appointed, provided that a person appointed by a settlor to represent the settlor's minor or unborn child may not be related or subordinate to the settlor within the meaning of section 672 (c) of the federal "Internal Revenue Code of 1986", as amended.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1159, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 3 - REPRESENTATION (§§ 15-5-301 — 15-5-305) › Section 15-5-304 - Representation by person having substantially identical interest

Unless otherwise represented, a minor, an incapacitated person, or an unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another having a substantially identical interest with respect to the particular question or dispute, but only to the extent there is no conflict of interest between the representative and the person represented.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1159, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 3 - REPRESENTATION (§§ 15-5-301 — 15-5-305) › Section 15-5-305 - Appointment of representative

If the court determines that an interest is not represented pursuant to this part 3, or that the otherwise available representation might be inadequate, the court may appoint a representative to receive notice, give consent, and otherwise represent, bind, and act on behalf of a minor, an incapacitated person, a protected person, or an unborn individual, or a person whose identity or location is unknown. A representative may be appointed to represent several persons or interests.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1160, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-401 - Methods of creating trust

(1)
A trust may be created by:
(a)
Transfer of property to another person as trustee during the settlor's lifetime or by will or other disposition taking effect upon the settlor's death;
(b)
Declaration by the owner of property that the owner holds identifiable property as trustee;
(c)
Exercise of a power of appointment in favor of a trustee; or
(d)
A statute, judgment, or decree authorizing the creation of a trust.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1160, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-402 - Requirements for creation

(1)
A trust is created only if:
(a)
Either:
(I)
The settlor has capacity to create a trust and indicates an intention to create a trust; or
(II)
A statute, judgment, or decree authorizes creation of a trust;
(b)
The trust has a definite beneficiary or is:
(I)
A charitable trust;
(II)
A trust for the care of an animal, as provided in section
15-5-408
; or
(III)
A trust for a noncharitable purpose, as provided in section
15-5-409
;
(c)
The trustee has duties to perform; and
(d)
The same person is not the sole trustee and sole beneficiary.
(2)
A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.
(3)
A power in a trustee to select a beneficiary from an indefinite class is valid. If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1160, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-403 - Trusts created in other jurisdictions

(1)
A trust not created by a will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation:
(a)
The settlor was domiciled, had a place of abode, or was a national;
(b)
A trustee was domiciled or had a place of business; or
(c)
Any trust property was located.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1161, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-404 - Trust purposes

A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve. A trust and its terms must be for the benefit of its beneficiaries.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1161, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-405 - Charitable purposes - enforcement

(1)
A charitable trust may be created for the relief of poverty; the advancement of education or religion; the promotion of health, governmental, or municipal purposes; or other purposes the achievement of which is beneficial to the community.
(2)
If the terms of a charitable trust do not indicate a particular charitable purpose or beneficiary, the trustee, if authorized by the terms of the trust, or, if not, the court, may select one or more charitable purposes or beneficiaries. The selection must be consistent with the settlor's intention to the extent that such intention can be ascertained.
(3)
The settlor of a charitable trust, among others, may maintain a proceeding to enforce the trust.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1161, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-406 - Creation of trust induced by fraud, duress, or undue influence

A trust is void to the extent its creation was induced by fraud, duress, or undue influence.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1161, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-407 - Evidence of oral trust

Except as required by a statute other than this article 5, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear and convincing evidence.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1161, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-408 - Trust for care of an animal

Subject to this section and section
15-5-409.5
, a trust for the care of designated domestic or pet animals and the animals' offspring in gestation is valid. For purposes of this section, the determination of the "animals' offspring in gestation" is made at the time the designated domestic or pet animals become present beneficiaries of the trust. Unless the trust instrument provides for an earlier termination, the trust terminates when no living animal is covered by the trust. A trust instrument must be liberally construed to bring the trust within this section, to presume against the merely precatory or honorary nature of its disposition, and to carry out the general intent of the settlor. Extrinsic evidence is admissible in determining the settlor's intent. Any trust pursuant to this section is an exception to any statutory or common law rule against perpetuities.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1161, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-409 - Noncharitable trust without ascertainable beneficiary

Subject to section
15-5-409.5
and except as provided pursuant to sections
38-30-110
to
38-30-112
, if a trust is for a specific, lawful, noncharitable purpose or for lawful, noncharitable purposes to be selected by the trustee, and there is no definite or definitely ascertainable beneficiary designated, the trust may be performed by the trustee for twenty-one years but no longer, regardless of whether the terms of trust contemplate a longer duration.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1162, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-409.5 - Additional provisions applicable to noncharitable trusts without ascertainable beneficiary and trusts for care of animal

(1)
In addition to the provisions of sections
15-5-408
and
15-5-409
, a trust covered by either of those sections is subject to the following provisions:
(a)
Except as expressly provided otherwise in the trust instrument, no portion of the principal or income may be converted to the use of the trustee, other than reasonable trustee fees and expenses of administration, or to any use other than for the trust's purposes or for the benefit of a covered animal or animals;
(b)
Upon termination, the trustee shall transfer the unexpended trust property in the following order:
(I)
As directed in the trust instrument;
(II)
If the trust was created in a nonresiduary clause in the settlor's will or in a codicil to the settlor's will, under the residuary clause in the settlor's will; and
(III)
If no taker is produced by the application of subsections (1)(b)(I) and (1)(b)(II) of this section, to the settlor's heirs pursuant to part 5 of article
11
of this title 15;
(c)
(Reserved)
(d)
The intended use of the principal or income can be enforced by an individual designated for that purpose in the trust instrument, by the person having custody of an animal for which care is provided by the trust instrument, by a remainder beneficiary, or, if none, by an individual appointed by a court upon application to it by an individual;
(e)
All trusts created pursuant to this section may be registered, and all trustees are subject to the laws of this state applying to trusts and trustees; and
(f)
(Reserved)
(g)
(I)
If no trustee is designated or no designated trustee is willing or able to serve, a court shall name a trustee. A court may order the transfer of the property to another trustee if required to ensure that the intended use is carried out and if:
(A)
No successor trustee is designated in the trust instrument; or
(B)
No designated successor trustee agrees to serve or is able to serve.
(II)
A court may also make such other orders and determinations as shall be advisable to carry out the intent of the settlor and the purposes of sections
15-5-408
and
15-5-409
.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1162, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-410 - Modification or termination of trust - proceedings for approval or disapproval

(1)
In addition to the methods of termination prescribed by sections
15-5-411
to
15-5-414
, a trust terminates to the extent that:
(a)
The trust is revoked or expires pursuant to its terms;
(b)
No purpose of the trust remains to be achieved; or
(c)
The purposes of the trust have become unlawful, contrary to public policy, or impossible to achieve.
(2)
A proceeding to approve or disapprove a proposed modification or termination pursuant to sections
15-5-411
to
15-5-416
, or trust combination or division pursuant to section
15-5-417
, may be commenced by a trustee or a beneficiary.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1163, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-411 - Modification or termination of noncharitable irrevocable trust by consent

(1)
If, upon petition, the court finds that the settlor and all beneficiaries consent to the modification or termination of a noncharitable irrevocable trust, the court shall approve the modification or termination even if the modification or termination is inconsistent with a material purpose of the trust. A settlor's consent to a trust's modification or termination may be given by an agent under a power of attorney only to the extent expressly authorized by the power of attorney or the terms of the trust, by the settlor's conservator with the approval of the court supervising the conservatorship if an agent is not so authorized, or by the settlor's guardian with the approval of the court supervising the guardianship if an agent is not so authorized and a conservator has not been appointed.
(2)
Other than a trust established by court order under Title XIX of the federal "Social Security Act",
42 U.S.C. sec. 1396p (d)(4)
, a noncharitable irrevocable trust may:
(a)
Be terminated upon consent of all of the beneficiaries if the court concludes that continuance of the trust is not necessary to achieve any material purpose of the trust; or
(b)
Be modified upon consent of all of the beneficiaries if the court concludes that modification is not inconsistent with a material purpose of the trust.
(3)
A spendthrift provision in the terms of a trust is not presumed to constitute a material purpose of the trust.
(4)
Upon termination of a trust pursuant to subsection (1) or (2) of this section, the trustee shall distribute the trust property as agreed by the beneficiaries.
(5)
If not all of the beneficiaries consent to a proposed modification or termination of a trust pursuant to subsection (1) or (2) of this section, the modification or termination may be approved by the court if the court is satisfied that:
(a)
If all of the beneficiaries had consented, the trust could have been modified or terminated pursuant to this section; and
(b)
The interests of a beneficiary who does not consent will be adequately protected.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1163, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-412 - Modification or termination because of unanticipated circumstances or inability to administer trust effectively

(1)
The court may modify the administrative or dispositive terms of a trust or terminate the trust if, because of circumstances not anticipated by the settlor, modification or termination will further the purposes of the trust. To the extent practicable, the modification must be made in accordance with the settlor's probable intention.
(2)
The court may modify the administrative terms of a trust if continuation of the trust on its existing terms would be impracticable or wasteful or impair the trust's administration.
(3)
Upon termination of a trust pursuant to this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1164, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-413 - Cy pres

(1)
Except as otherwise provided in subsection (2) of this section, if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful:
(a)
The trust does not fail, in whole or in part;
(b)
The trust property does not revert to the settlor or the settlor's successors in interest; and
(c)
The court may apply cy pres to modify or terminate the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor's charitable purposes.
(2)
A provision in the terms of a charitable trust that would result in distribution of the trust property to a noncharitable beneficiary prevails over the power of the court pursuant to subsection (1) of this section to apply cy pres to modify or terminate the trust only if, when the provision takes effect:
(a)
The trust property is to revert to the settlor and the settlor is still living; or
(b)
Fewer than twenty-one years have elapsed since the date of the trust's creation.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1164, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-414 - Modification or termination of uneconomic trust

(1)
After notice to the qualified beneficiaries, the trustee of a trust property having a total value less than one 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.
(2)
The court may modify or terminate a trust or remove the trustee and appoint a different trustee if it determines that the value of the trust property is insufficient to justify the cost of administration.
(3)
Upon termination of a trust pursuant to this section, the trustee shall distribute the trust property in a manner consistent with the purposes of the trust.
(4)
This section does not apply to an easement for conservation or preservation.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1165, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-415 - Reformation to correct mistakes

The court may reform the terms of a trust, even if unambiguous, to conform the terms to the settlor's intention if it is proved by clear and convincing evidence that the settlor's intent and the terms of the trust were affected by a mistake of fact or law, whether in expression or inducement.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1165, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-416 - Modification to achieve settlor's tax objectives

To achieve the settlor's tax objectives, the court may modify the terms of a trust in a manner that is not contrary to the settlor's probable intention. The court may provide that the modification has retroactive effect.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1165, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 4 - CREATION, VALIDITY, MODIFICATION, AND TERMINATION OF TRUST (§§ 15-5-401 — 15-5-417) › Section 15-5-417 - Combination and division of trusts

After notice to the qualified beneficiaries and trust directors, a trustee may combine two or more trusts into a single trust or divide a trust into two or more separate trusts, if the result does not impair the rights of any beneficiary or adversely affect achievement of the purposes of the trust.
Amended by 2019 Ch. 51, § 6, eff. 8/2/2019.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1165, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 5 - CREDITOR'S CLAIMS - SPENDTHRIFT AND DISCRETIONARY TRUSTS (§§ 15-5-501 — 15-5-508) › Section 15-5-501 - Rights of beneficiary's creditor or assignee

Except as provided in section
15-5-504
, to the extent a beneficiary's interest is not subject to a spendthrift provision, the court may authorize a creditor or assignee of the beneficiary to attach present or future distributions to or for the benefit of the beneficiary. The court may limit the award to such relief as is appropriate under the circumstances. Nothing in this part 5 modifies other Colorado law governing limitations on the amounts that may be applied to the satisfaction of a creditor's claim, or the procedures by which a creditor may attempt to satisfy a claim.
Added by 2021 Ch. 170, § 1, eff. 9/7/2021.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 5 - CREDITOR'S CLAIMS - SPENDTHRIFT AND DISCRETIONARY TRUSTS (§§ 15-5-501 — 15-5-508) › Section 15-5-502 - Spendthrift provision

(1)
A spendthrift provision is valid only if it restrains both voluntary and involuntary transfer of a beneficiary's interest.
(2)
A term of a trust providing that the interest of a beneficiary is held subject to a "spendthrift trust", or words of similar import, is sufficient to restrain both voluntary and involuntary transfer of the beneficiary's interest.
(3)
A beneficiary may not transfer an interest in a trust in violation of a valid spendthrift provision and, except as otherwise provided in this part 5, a creditor or assignee of the beneficiary may not reach the interest or a distribution by the trustee before its receipt by the beneficiary.
(4)
A trustee of a trust that is subject to a spendthrift provision may make a distribution that is required or authorized by the terms of the trust by applying the distribution for the beneficiary's benefit. A creditor or assignee of the beneficiary may not reach a distribution that is applied for the beneficiary's benefit, and no trustee is liable to any creditor of a beneficiary for making such a distribution.
(5)
Real property or tangible personal property that is owned by the trust but that is made available for a beneficiary's use or occupancy in accordance with the trustee's authority under the terms of the trust is not considered to have been distributed by the trustee or received by the beneficiary for purposes of allowing a creditor or assignee of the beneficiary to reach the property.
Added by 2021 Ch. 170,§1, eff. 9/7/2021.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 5 - CREDITOR'S CLAIMS - SPENDTHRIFT AND DISCRETIONARY TRUSTS (§§ 15-5-501 — 15-5-508) › Section 15-5-503 - Exceptions to spendthrift provision - definitions

(1)
In this section:
(a)
"Child" includes any person or entity who can enforce a child support order in this or another state.
(b)
"Child support order" means any administrative or court order requiring the payment of child support, child support arrears, child support debt, retroactive support, or medical support. If a child support order is combined with an order for spousal maintenance or support, the term "child support order" shall not include any portion of the order for spousal maintenance or support.
(2)
A spendthrift provision is unenforceable against:
(a)
A child who is an obligee pursuant to a child support order for which the beneficiary is the obligor; and
(b)
A judgment creditor who has provided essential services for the protection of a beneficiary's interest in the trust.
(2.5)
Subsection (2) of this section does not apply to a special needs trust, supplemental needs trust, or similar trust established for a person if its application could invalidate such a trust's exemption from consideration as a countable resource for medicaid or supplemental security income purposes or if its application has the effect or potential effect of rendering the person ineligible for any program of public benefit, including, but not limited to, medicaid and supplemental security income.
(3)
The only remedy of a claimant against whom a spendthrift provision cannot be enforced is to obtain from a court an order attaching present or future distributions to or for the benefit of the beneficiary. The court may limit the award to such relief as is appropriate under the circumstances.
Added by 2021 Ch. 170,§1, eff. 9/7/2021.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 5 - CREDITOR'S CLAIMS - SPENDTHRIFT AND DISCRETIONARY TRUSTS (§§ 15-5-501 — 15-5-508) › Section 15-5-504 - Discretionary trusts - effect of standard - definitions

(1)
In this section:
(a)
"Child" includes any person or entity who can enforce a child support order in this or another state.
(b)
"Child support order" means any administrative or court order requiring the payment of child support, child support arrears, child support debt, retroactive support, or medical support. If a child support order is combined with an order for spousal maintenance or support, the term "child support order" shall not include any portion of the order for spousal maintenance or support.
(2)
Except as otherwise provided in subsection (3) of this section, whether or not a trust contains a spendthrift provision, a creditor of a beneficiary may not compel a distribution that is subject to the trustee's discretion, even if:
(a)
The discretion is expressed in the form of a standard of distribution; or
(b)
The trustee has abused the discretion.
(3)
To the extent a trustee has not complied with a standard of distribution or has abused a discretion:
(a)
A distribution may be ordered by the court to satisfy a child support order to which the beneficiary is an obligor; and
(b)
The court shall direct the trustee to pay to the child such amount as is equitable under the circumstances but not more than the amount the trustee would have been required to distribute to or for the benefit of the beneficiary had the trustee complied with the standard or not abused the discretion.
(3.5)
Subsection (3) of this section does not apply to a special needs trust, supplemental needs trust, or similar trust established for a person if its application could invalidate such a trust's exemption from consideration as a countable resource for medicaid or supplemental security income purposes or if its application has the effect or potential effect of rendering such person ineligible for any program of public benefit, including, but not limited to, medicaid and supplemental security income.
(4)
This section does not limit the right of a beneficiary to maintain a judicial proceeding against a trustee for an abuse of discretion or failure to comply with a standard for distribution.
(5)
If the trustee's or cotrustee's discretion to make distributions for the trustee's or cotrustee's own benefit is limited by an ascertainable standard, a creditor may not reach or compel distribution of the beneficial interest except to the extent the interest would be subject to the creditor's claim were the beneficiary not acting as trustee or cotrustee.
Amended by 2023 Ch. 303,§ 17, eff. 8/7/2023.
Added by 2021 Ch. 170, § 1, eff. 9/7/2021.
2023 Ch. 303, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 5 - CREDITOR'S CLAIMS - SPENDTHRIFT AND DISCRETIONARY TRUSTS (§§ 15-5-501 — 15-5-508) › Section 15-5-505 - Creditor's claim against a settlor

(1)
Whether or not the terms of a trust contain a spendthrift provision, the following rules apply:
(a)
During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors.
(b)
With respect to an irrevocable trust, a creditor or assignee of the settlor may reach the maximum amount that can be distributed to or for the settlor's benefit. If a trust has more than one settlor, the amount the creditor or assignee of a particular settlor may reach may not exceed the settlor's interest in the portion of the trust attributable to that settlor's contribution.
(c)
After the death of a settlor, the property of a trust that was revocable at the settlor's death is subject to claims and allowances as provided in section
15-15-103
.
(1.5)
(a)
For the purposes of subsection (1)(b) of this section, none of the following shall be considered an amount that can be distributed to or for the benefit of the settlor:
(I)
Trust property that could be, but has not yet been, distributed to or for the benefit of the settlor only as a result of the exercise of a power of appointment held in a nonfiduciary capacity by any person other than the settlor;
(II)
Trust property that could be, but has not yet been, distributed to or for the benefit of the settlor of a trust pursuant to the power of the trustee to make distributions or pursuant to the power of another in a fiduciary capacity to direct distributions, if and to the extent that the distributions could be made from trust property the value of which was included in the gross estate of the settlor's spouse for federal estate tax purposes under section 2041 or section 2044 of the "Internal Revenue Code of 1986", as amended, or that was treated as a transfer by the settlor's spouse under section 2514 or section 2519 of the "Internal Revenue Code of 1986", as amended; and
(III)
Trust property that, pursuant to the exercise of a discretionary power by a person other than the settlor, could be paid to a taxing authority or to reimburse the settlor for any income tax on trust income or principal that is payable by the settlor under the law imposing the tax.
(b)
Subsection (1)(b) of this section does not apply to an irrevocable special needs trust established for a disabled person as described in
42 U.S.C. sec. 1396p(d)(4)
or similar federal law governing the transfer to such a trust.
(2)
(Reserved)
Added by 2021 Ch. 170,§1, eff. 9/7/2021.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 5 - CREDITOR'S CLAIMS - SPENDTHRIFT AND DISCRETIONARY TRUSTS (§§ 15-5-501 — 15-5-508) › Section 15-5-506 - Overdue distribution - definition

(1)
In this section, "mandatory distribution" means a distribution of income or principal which the trustee is required to make to a beneficiary under the terms of the trust, including a distribution upon termination of the trust. The term does not include a distribution subject to the exercise of the trustee's discretion, even if the discretion is expressed in the form of a standard of distribution, or the terms of the trust authorizing a distribution couple language of discretion with language of direction.
(2)
Whether or not a trust contains a spendthrift provision, a creditor or assignee of a beneficiary may reach a mandatory distribution of income or principal, including a distribution upon termination of the trust, if the trustee has not made the distribution to the beneficiary within a reasonable time after the designated distribution date.
Added by 2021 Ch. 170,§1, eff. 9/7/2021.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 5 - CREDITOR'S CLAIMS - SPENDTHRIFT AND DISCRETIONARY TRUSTS (§§ 15-5-501 — 15-5-508) › Section 15-5-507 - Personal obligations of trustee

Trust property is not subject to personal obligations of the trustee, even if the trustee becomes insolvent or bankrupt.
Added by 2021 Ch. 170,§1, eff. 9/7/2021.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 5 - CREDITOR'S CLAIMS - SPENDTHRIFT AND DISCRETIONARY TRUSTS (§§ 15-5-501 — 15-5-508) › Section 15-5-508 - Application of part

(1)
This part 5 applies to all trusts created before, on, or after July 1, 2022.
(2)
This part 5 applies to all judicial proceedings concerning trusts commenced on or after July 1, 2022.
(3)
This part 5 applies to judicial proceedings concerning trusts commenced before July 1, 2022, unless the court finds that application of a particular provision of this part 5 would substantially interfere with the effective conduct of the judicial proceedings or prejudice the rights of the parties, in which case the particular provision of this part 5 does not apply and the superseded law applies.
(4)
Any rule of construction or presumption provided in this part 5 applies to trust instruments executed before July 1, 2022, unless there is a clear indication of a contrary intent in the terms of the trust.
(5)
An act done before July 1, 2022, is not affected by this part 5.
(6)
If a right affected by this part 5 is acquired, extinguished, or barred upon the expiration of a prescribed period that has commenced to run pursuant to any other statute before July 1, 2022, then the period prescribed by that statute continues to apply to the right.
Added by 2021 Ch. 170,§1, eff. 9/7/2021.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 6 - REVOCABLE TRUSTS (§§ 15-5-601 — 15-5-604) › Section 15-5-603 - Settlor's powers

(1)
To the extent a trust is revocable by a settlor, a trustee may follow a direction of the settlor that is contrary to the terms of the trust. To the extent a trust is revocable by a settlor in conjunction with a person other than a trustee or person holding an adverse interest, the trustee may follow a direction from the settlor and the other person holding the power to revoke, even if the direction is contrary to the terms of the trust.
(2)
To the extent a trust is revocable, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the settlor.
(3)
During the period the power may be exercised, the holder of a power of withdrawal has the rights of a settlor of a revocable trust under this section to the extent of the property subject to the power.
Amended by 2019 Ch. 51, § 7, eff. 8/2/2019.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1167, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 6 - REVOCABLE TRUSTS (§§ 15-5-601 — 15-5-604) › Section 15-5-604 - Limitation on action contesting validity of revocable trust

(1)
(a)
A person must commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor's death within the earlier of:
(I)
Three years after the settlor's death; or
(II)
One hundred twenty days after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust's existence, of the trustee's name and address, and of the time allowed for commencing a proceeding. A trustee is not liable to any person for giving or failing to give notice under this section.
(b)
The applicable time limit described in subsection (1)(a) of this section is an absolute bar that may not be waived or tolled.
(2)
Upon the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. The trustee is not subject to liability for doing so unless:
(a)
The trustee knows of a pending judicial proceeding contesting the validity of the trust; or
(b)
A potential contestant has notified the trustee of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within sixty days after the contestant sent the notification.
(3)
Unless a distribution or payment no longer can be questioned because of adjudication, estoppel, or limitation, a beneficiary of a trust that is determined to have been invalid, or a distributee of property improperly distributed or paid, or a claimant who is improperly paid, is liable for the return of the property improperly received and its income, if any, since the distribution, if he or she has the property. If he or she does not have the property, then he or she is liable for the return of the value as of the date of his or her disposition of the property improperly received, and its income and gain, if any received by him or her.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1167, § 1, effective 1/1/2019.
2023 Colorado Revised Statutes › Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES (§§ 15-1-101 — 15-24-403) › COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Article 5 - COLORADO UNIFORM TRUST CODE (§§ 15-5-101 — 15-5-1404) › Part 7 - OFFICE OF TRUSTEE (§§ 15-5-701 — 15-5-709) › Section 15-5-701 - Accepting or declining trusteeship

(1)
Except as otherwise provided in subsection (3) of this section, a person designated as trustee accepts the trusteeship:
(a)
By substantially complying with a method of acceptance provided in the terms of the trust; or
(b)
If the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by accepting delivery of the trust property, exercising powers or performing duties as a trustee, or otherwise indicating acceptance of the trusteeship. A provision in a trust specifying a method to accept or decline trusteeship does not make the specified method exclusive unless the specified method is referred to as the "sole", "exclusive", or "only" method of accepting or declining trusteeship or the provision includes similar language manifesting that the settlor's intent was that the trusteeship may not be accepted or declined by any other method.
(2)
A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship. A designated trustee who does not accept the trusteeship within a reasonable time after knowing of the designation is deemed to have rejected the trusteeship.
(3)
A person designated as a trustee, without accepting the trusteeship, may:
(a)
Act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the settlor or, if the settlor is dead or lacks capacity, to any acting trustee and a qualified beneficiary; and
(b)
Inspect or investigate trust property to determine potential liability under environmental or other law or for any other purpose.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1168, § 1, effective 1/1/2019.