reglab/statecodes huggingface dataset:
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 15-2.5-313 - Appointment to taker in default

If a powerholder makes an appointment to a taker in default of appointment and the appointee would have taken the property under a gift-in-default clause had the property not been appointed, the power of appointment is deemed not to have been exercised and the appointee takes the property under the clause.
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
This section articulates the rule that, to the extent an appointee would have taken appointed property as a taker in default, the appointee takes under the gift-in-default clause rather than under the appointment.
Takers in default have future interests that may be defeated by an exercise of the power of appointment. To whatever extent the powerholder purports to appoint an interest already held in default of appointment, the powerholder does not exercise the power to alter the donor's disposition but merely declares an intent not to alter it. To the extent, however, that the appointed property
is different from
(e.g., is a lesser estate) or
exceeds the total of
the property the appointee would receive as a taker in default, the property passes under the appointment.
Usually it makes no difference whether the appointee takes as appointee or as taker in default. The principal difference arises in jurisdictions that follow the rule that the estate creditors of the powerholder of a general testamentary power that was conferred on the powerholder by another have no claim on the appointive property unless the powerholder has exercised the power. Although this act does not follow that rule regarding creditors' rights (see Section 502), some jurisdictions do.
The rule of this section is consistent with, and this Comment draws on, Restatement Third of Property: Wills and Other Donative Transfers § 19.25 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 15-2.5-314 - Powerholder's authority to revoke or amend exercise

(1)
A powerholder may revoke or amend an exercise of a power of appointment only to the extent that:
(a)
The powerholder reserves a power of revocation or amendment in the instrument exercising the power of appointment and, if the power is nongeneral, the terms of the instrument creating the power of appointment do not prohibit the reservation; or
(b)
The terms of the instrument creating the power of appointment provide that the exercise is revocable or amendable.
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
This section recognizes that a powerholder lacks the authority to revoke or amend an exercise of the power of appointment, except to the extent (1) the powerholder reserved a power of revocation or amendment in the instrument exercising the power of appointment and the terms of the instrument creating the power of appointment do not effectively prohibit the reservation, or (2) the donor provided that the exercise is revocable or amendable.
A powerholder who exercises a power of appointment is like any other transferor of property in regard to authority to revoke or amend the transfer. Hence, unless the powerholder (or the donor) in some appropriate manner manifests an intent that an appointment is revocable or amendable, the appointment is irrevocable.
The ability of an agent or guardian to revoke or amend 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.
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 essentially consistent with, and this Comment draws on, Restatement Third of Property: Wills and Other Donative Transfers § 19.7 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 4 - DISCLAIMER OR RELEASE; CONTRACT TO APPOINT OR NOT TO APPOINT (§§ 15-2.5-401 — 15-2.5-406) › Section 15-2.5-401 - Disclaimer

(1)
Subject to the "Uniform Disclaimer of Property Interests Act", part 12 of article
11
of this title:
(a)
A powerholder may disclaim all or part of a power of appointment; and
(b)
A permissible appointee, appointee, or taker in default of appointment may disclaim all or part of an interest in appointive property.
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 780, § 1, effective 7/1/2015.
OFFICIAL COMMENT
A prospective powerholder cannot be compelled to accept the power of appointment, just as the prospective donee of a gift cannot be compelled to accept the gift.
A disclaimer is to be contrasted with a release. A release occurs after the powerholder accepts the power. A disclaimer prevents acquisition of the power, and consequently a powerholder who has accepted a power can no longer disclaim.
Disclaimer statutes frequently specify the time within which a disclaimer must be made. The Uniform Disclaimer of Property Interests Act (1999) (UDPIA) does not specify a time limit, but allows a disclaimer until a disclaimer is barred (see UDPIA § 13).
Disclaimer statutes customarily specify the methods for filing a disclaimer. UDPIA § 12 provides that the statutory methods must be followed. In the absence of such a requirement, statutory formalities for making a disclaimer of a power are not construed as exclusive, and any manifestation of the powerholder's intent not to accept the power may also suffice.
A partial disclaimer of a power of appointment leaves the powerholder possessed of the part of the power not disclaimed.
Just as an individual who would otherwise be a powerholder can avoid acquiring the power by disclaiming it, a person who otherwise would be a permissible appointee, appointee, or taker in default of appointment can avoid acquiring that status by disclaiming it.
The ability of an agent or guardian to disclaim 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, Restatement Third of Property: Wills and Other Donative Transfers § 20.4 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 4 - DISCLAIMER OR RELEASE; CONTRACT TO APPOINT OR NOT TO APPOINT (§§ 15-2.5-401 — 15-2.5-406) › Section 15-2.5-402 - Authority to release

A powerholder may release a power of appointment, in whole or in part, except to the extent the terms of the instrument creating the power prevent the release.
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 780, § 1, effective 7/1/2015.
OFFICIAL COMMENT
Whether a power of appointment is general or nongeneral, presently exercisable or testamentary, the powerholder has the authority to release the power in whole or in part, in the absence of an effective restriction on release imposed by the donor. A partial release is a release that narrows the freedom of choice otherwise available to the powerholder but does not eliminate the power. A partial release may relate either to the manner of exercising the power or to the persons in whose favor the power may be exercised.
If the powerholder did not create the power, so that the powerholder and donor are different individuals, the donor can effectively impose a restraint on release, but the donor must manifest an intent in the terms of the creating instrument to impose such a restraint.
If the powerholder created the power, so that the powerholder is also the donor, the donor/powerholder cannot effectively impose a restraint on release. A self-imposed restraint on release resembles a self-imposed restraint on alienation, which is ineffective. See, for example, Restatement Third of Trusts § 58.
If the exercise of a power of appointment requires the action of two or more individuals, each powerholder has a power of appointment. If one but not the other joint powerholder releases the power, the power survives in the hands of the nonreleasing powerholder, unless the continuation of the power is inconsistent with the donor's purpose in creating the joint power. See Restatement Third of Property: Wills and Other Donative Transfers § 20.1, Comment f.
The ability of an agent or guardian to release 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, Restatement Third of Property: Wills and Other Donative Transfers §§ 20.1 and 20.2 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 4 - DISCLAIMER OR RELEASE; CONTRACT TO APPOINT OR NOT TO APPOINT (§§ 15-2.5-401 — 15-2.5-406) › Section 15-2.5-404 - Revocation or amendment of release

(1)
A powerholder may revoke or amend a release of a power of appointment only to the extent that:
(a)
The instrument of release is revocable by the powerholder; or
(b)
The powerholder reserves a power of revocation or amendment in the instrument of release.
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 781, § 1, effective 7/1/2015.
OFFICIAL COMMENT
A release is typically irrevocable. If a powerholder wishes to retain the power to revoke or amend the release, the powerholder should so indicate in the instrument executing the release.
The ability of an agent or guardian to revoke or amend the release 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.
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 §§ 20.1 and 20.2 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 4 - DISCLAIMER OR RELEASE; CONTRACT TO APPOINT OR NOT TO APPOINT (§§ 15-2.5-401 — 15-2.5-406) › Section 15-2.5-405 - Power to contract - presently exercisable power of appointment

(1)
A powerholder of a presently exercisable power of appointment may contract:
(a)
Not to exercise the power if the contract, when made, does not confer a benefit on a person other than a taker in default or a permissible appointee; or
(b)
To exercise the power if the contract, when made, does not confer a benefit on an impermissible appointee.
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 781, § 1, effective 7/1/2015.
OFFICIAL COMMENT
A powerholder of a presently exercisable power may contract to make, or not to make, an appointment if the contract does not confer a benefit on an impermissible appointee. The rationale is that the power is presently exercisable, so the powerholder can presently enter into a contract concerning the appointment.
The contract may not confer a benefit on an impermissible appointee. Recall that a general power presently exercisable in favor of the powerholder or the powerholder's estate has no impermissible appointees. See Section 305(1). In contrast, a presently exercisable nongeneral power, or a general power presently exercisable only in favor of one or more of the creditors of the powerholder or the powerholder's estate, does have impermissible appointees. See Section 305(2)-(3).
A contract
not
to appoint assures that the appointive property will pass to the taker in default. A contract to appoint to a taker in default, if enforceable, has the same effect as a contract not to appoint.
The ability of an agent or guardian to contract 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, Restatement Third of Property: Wills and Other Donative Transfers § 21.1 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 4 - DISCLAIMER OR RELEASE; CONTRACT TO APPOINT OR NOT TO APPOINT (§§ 15-2.5-401 — 15-2.5-406) › Section 15-2.5-406 - Power to contract - power of appointment not presently exercisable

(1)
A powerholder of a power of appointment that is not presently exercisable may contract to exercise or not to exercise the power only if the powerholder:
(a)
Is also the donor of the power; and
(b)
Has reserved the power in the instrument creating the power.
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 781, § 1, effective 7/1/2015.
OFFICIAL COMMENT
Except in the case of a power reserved by the donor in a revocable inter vivos trust, a contract to exercise, or not to exercise, a power of appointment that is not presently exercisable is unenforceable, because the powerholder does not have the authority to make a current appointment. If the powerholder was also the donor of the power and created the power in a revocable inter vivos trust, however, a contract to appoint is enforceable, because the donor-powerholder could have revoked the trust and recaptured ownership of the trust assets or could have amended the trust to change the power onto one that is presently exercisable.
In all other cases, the donor of a power not presently exercisable has manifested an intent that the selection of the appointees and the determination of the interests they are to receive are to be made in the light of the circumstances that exist on the date that the power becomes exercisable. Were a contract to be enforceable, the donor's intent would be defeated.
The ability of an agent or guardian to contract 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, Restatement Third of Property: Wills and Other Donative Transfers § 21.2 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 6 - MISCELLANEOUS PROVISIONS (§§ 15-2.5-601 — 15-2.5-603) › Section 15-2.5-601 - Uniformity of application and construction

In applying and construing this article, 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 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 781, § 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 6 - MISCELLANEOUS PROVISIONS (§§ 15-2.5-601 — 15-2.5-603) › Section 15-2.5-602 - Relation to electronic signatures in global and national commerce act

This article modifies, limits, or supersedes the federal "Electronic Signatures in Global and National Commerce Act",
15 U.S.C. section 7001
et seq., but does not modify, limit, or supersede section 101 (c) of that act,
15 U.S.C. section 7001 (c)
, or authorize electronic delivery of any of the notices described in section 103 (b) of that act,
15 U.S.C. section 7003 (b)
.
Added by 2014 Ch. 209, § 1, eff. 7/1/2015.
L. 2014: Entire article added, (HB 14-1353), ch. 209, p. 781, § 1, effective 7/1/2015.
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 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 15-5-101 — 15-5-114) › Section 15-5-101 - Short title

This article 5 is known and may be cited as the "Colorado Uniform Trust Code" and is referred to in this article 5 as "this code" or "code".
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1144, § 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 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 15-5-101 — 15-5-114) › Section 15-5-102 - Scope

This code applies to express trusts, charitable or noncharitable, and trusts created pursuant to a statute, judgment, or decree that requires the trust to be administered in the manner of an express trust. This code does not apply to a business trust, a security arrangement, a trust created by a deposit arrangement in a financial institution, or any arrangement under which a person is a nominee or escrowee for another.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1144, § 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 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 15-5-101 — 15-5-114) › Section 15-5-104 - Knowledge

(1)
Subject to subsection (2) of this section, a person has knowledge of a fact if the person:
(a)
Has actual knowledge of it;
(b)
Has received a notice or notification of it; or
(c)
From all the facts and circumstances known to the person at the time in question, and acting in a reasonably prudent manner given the person's experience and expertise, has reason to know it.
(2)
An organization that conducts activities through employees has notice or knowledge of a fact involving a trust only from the time the information was received by an employee having responsibility to act for the trust, or would have been brought to the employee's attention if the organization had exercised reasonable diligence. An organization exercises reasonable diligence if it maintains routines for communicating significant information to the employee having responsibility to act for the trust and there is reasonable compliance with the routines. Reasonable diligence does not require an employee of the organization to communicate information unless the communication is part of the individual's regular duties or the individual knows that a matter involving the trust would be materially affected by the information.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1147, § 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 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 15-5-101 — 15-5-114) › Section 15-5-105 - Default and mandatory rules

(1)
Except as otherwise provided in the terms of the trust, this code governs the duties, rights, and powers of a trustee; relations among trustees; the rights, powers, and interests of a beneficiary; the relationship between the trustees and the beneficiaries; the purpose of the trust; and other matters with respect to the trust or the property subject to the trust.
(2)
Subject to sections
15-16-809
,
15-16-810
, and
15-16-811
, the terms of a trust prevail over any provision of this code except:
(a)
The minimum requirements for creating the trust;
(b)
The duty of a trustee to act in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries;
(c)
The requirement that a trust and its terms be for the benefit of its beneficiaries and that the trust have a purpose that is lawful, not contrary to public policy, and possible to achieve;
(d)
The power of the court to modify or terminate a trust pursuant to sections
15-5-410
to
15-5-416
;
(e)
The effect of a spendthrift provision and the rights of certain creditors and assignees to reach a trust as provided in part 5 of this article 5;
(f)
The power of the court pursuant to section
15-5-702
to require, dispense with, modify, or terminate a bond;
(g)
The power of the court pursuant to section
15-5-708(2)
to adjust a trustee's compensation specified in the terms of the trust that is unreasonably low or high;
(h)
The duty pursuant to section
15-5-813(2)(b) and (2)(c)
to provide notice of the existence of an irrevocable trust, of the identity of the trustee, and of the right to request trustee's reports to current distributees or permissible distributees of such trust at any age, or to other qualified beneficiaries of such trust who have attained twenty-five years of age;
(i)
The duty pursuant to section
15-5-813(1)
to respond to the request of a qualified beneficiary of an irrevocable trust for trustee's reports and other information reasonably related to the administration of a trust;
(j)
The effect of an exculpatory term pursuant to section
15-5-1008
;
(k)
The rights pursuant to sections
15-5-1010
to
15-5-1013
of a person other than a trustee or beneficiary;
(l)
The periods of limitation for commencing a judicial proceeding;
(m)
Consistent with the terms of the trust and the provisions of this code, the power of the court to take such action and exercise such jurisdiction not inconsistent with a settlor's intent as may be necessary in the interests of justice; and
(n)
The subject matter jurisdiction of the court and venue for commencing a proceeding as provided in sections
15-5-203
and
15-5-204
, unless the trust instrument requires alternative dispute resolution.
Amended by 2021 Ch. 170,§2, eff. 9/7/2021.
Amended by 2019 Ch. 51,§2, eff. 8/2/2019.
Added by 2018 Ch. 169,§1, eff. 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 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 15-5-101 — 15-5-114) › Section 15-5-106 - Common law of trusts - principles of equity - other statutes

Unless displaced by the particular provisions of this code, the common law of trusts and principles of law and equity, and other statutes of this state, supplement its provisions.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1148, § 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 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 15-5-101 — 15-5-114) › Section 15-5-107 - Governing law

(1)
The meaning and effect of the terms of a trust are determined by:
(a)
The law of the jurisdiction designated in the terms of the trust unless the designation of that jurisdiction's law is contrary to a strong public policy of the jurisdiction having the most significant relationship to the matter at issue; or
(b)
In the absence of a controlling designation in the terms of the trust, the law of the jurisdiction having the most significant relationship to the matter at issue.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1148, § 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 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 15-5-101 — 15-5-114) › Section 15-5-109 - Methods and waiver of notice in matters other than judicial proceedings

(1)
Notice to a person pursuant to this code or the sending of a document to a person pursuant to this code must be accomplished in a manner reasonably suitable under the circumstances and likely to result in receipt of the notice or document. Permissible methods of notice or for sending a document include first-class mail, personal delivery, delivery to the person's last-known place of residence or place of business, or a properly directed electronic message.
(2)
A trustee need not provide a notice or document otherwise required pursuant to this code to a person whose identity or location is unknown to and not reasonably ascertainable by the trustee. The trustee shall maintain documentation of the trustee's reasonable efforts to ascertain the identity or location of such a person.
(3)
Notice pursuant to this code or the sending of a document pursuant to this code may be waived by the person who is to be notified or sent the document.
(4)
Notice of a judicial proceeding must be given as provided in the Colorado rules of probate procedure, the "Colorado Probate Code", and, if applicable, the Colorado rules of civil procedure.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1150, § 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 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 15-5-101 — 15-5-114) › Section 15-5-110 - Others treated as qualified beneficiaries

(1)
Whenever notice to qualified beneficiaries of a trust is required pursuant to this code, the trustee shall also give notice to any other beneficiary who has sent the trustee a request for notice.
(2)
A charitable organization expressly designated to receive distributions under the terms of a charitable trust has the rights of a qualified beneficiary pursuant to this code if the charitable organization, on the date the charitable organization's qualification is being determined:
(a)
Is a distributee or permissible distributee of trust income or principal;
(b)
Would be a distributee or permissible distributee of trust income or principal upon the termination of the interests of other distributees or permissible distributees then receiving or eligible to receive distributions; or
(c)
Would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date.
(3)
A person appointed to enforce a trust created for the care of an animal or another noncharitable purpose as provided in section
15-5-408
or
15-5-409
has the rights of a qualified beneficiary pursuant to this code.
(4)
The attorney general has the rights of a qualified beneficiary with respect to a charitable trust having its principal place of administration in this state.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1150, § 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 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 15-5-101 — 15-5-114) › Section 15-5-111 - Nonjudicial settlement agreements

(1)
Except as otherwise provided in subsection (3) of this section, any person may enter into a binding nonjudicial settlement agreement with respect to any matter involving a trust, regardless of whether the settlement agreement is supported by consideration.
(2)
The required parties to a nonjudicial settlement agreement are those persons whose interests in the trust would be materially affected by its provisions were the settlement agreement to be approved by the court at the time it was entered into by the parties.
(3)
A nonjudicial settlement agreement is valid only to the extent it does not violate a material purpose of the trust and includes terms and conditions that could be properly approved by the court pursuant to this code or other applicable law.
(4)
Matters that may be resolved by a nonjudicial settlement agreement include but are not limited to:
(a)
The interpretation or construction of the terms of the trust;
(b)
The approval of a trustee's report or accounting;
(c)
Direction to a trustee to refrain from performing a particular act or the grant to a trustee of any necessary or desirable power;
(d)
The resignation or appointment of a trustee and the determination of a trustee's compensation;
(e)
Transfer of a trust's principal place of administration; and
(f)
Liability of a trustee for an action relating to the trust.
(5)
Any person whose interest in the trust may be affected by a nonjudicial settlement agreement may request the court to approve or disapprove the nonjudicial settlement agreement, to determine whether the representation as provided in part 3 of this code was adequate, and to determine whether the agreement contains terms and conditions the court could have properly approved.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1151, § 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 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 15-5-101 — 15-5-114) › Section 15-5-112 - Rules of construction

Unless the terms of the trust instrument contain contrary rules of construction, the rules of construction that apply in this state to the interpretations of and disposition of property by a will or other governing instrument, as that term is defined in the "Colorado Probate Code", articles
10
to
17
of this title 15, also apply as appropriate to the interpretation of the terms of a trust and the disposition of the trust property.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1152, § 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 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 15-5-101 — 15-5-114) › Section 15-5-113 - Alternate dispute resolution

(1)
A settlor may designate in the trust instrument a method of nonjudicial alternate dispute resolution that is valid, enforceable, and irrevocable, except on a ground that exists at law or in equity for the invalidation of a trust. Such methods of nonjudicial dispute resolution may include rules of notice and procedure. The settlor may bind beneficiaries and assigns to the methods of dispute resolution.
(2)
A method of nonjudicial dispute resolution provided by the settlor in the trust instrument does not preclude the court's authority to enter an order of alternate dispute resolution, which does not eliminate or negate the method of nonjudicial dispute resolution provided by the settlor except on a ground that exists at law or in equity for the invalidation of a trust.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1152, § 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 1 - GENERAL PROVISIONS AND DEFINITIONS (§§ 15-5-101 — 15-5-114) › Section 15-5-114 - Insurable interest of trustee - definition

(1)
In this section, "settlor" means a person who executes a trust instrument. The term includes a person for which a fiduciary or agent is acting.
(2)
A trustee of a trust has an insurable interest in the life of an individual insured under a life insurance policy that is owned by the trustee of the trust acting in a fiduciary capacity or that designates the trust itself as the owner if, on the date the policy issued:
(a)
The insured is:
(I)
A settlor of the trust; or
(II)
An individual in whom a settlor of the trust has, or would have had if living at the time the policy was issued, an insurable interest; and
(b)
The life insurance proceeds are primarily for the benefit of one or more trust beneficiaries that have:
(I)
An insurable interest in the life of the insured; or
(II)
A substantial interest engendered by love and affection in the continuation of the life of the insured and, if not already included pursuant to subsection (2)(b)(I) of this section, who are:
(A)
Related within the fifth degree or closer, as measured by the civil law system of determining degrees of relation, either by blood or law, to the insured;
(B)
Stepchildren of the insured or their descendants; or
(C)
Individuals who are designated as beneficiaries of insurance policies for life insurance coverage on the life of the insured under a designated beneficiary agreement executed pursuant to article
22
of this title 15.
(3)
This section does not limit or abridge any insurable interest or right to insure under the common law or any other statute.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1152, § 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 2 - JUDICIAL PROCEEDINGS (§§ 15-5-201 — 15-5-210) › Section 15-5-201 - Role of court in administration of trust

(1)
The court may intervene in the administration of a trust to the extent its jurisdiction is invoked by an interested person or as provided by law.
(2)
A trust is not subject to continuing judicial supervision unless ordered by the court.
(3)
A judicial proceeding involving a trust may relate to any matter involving the trust's administration. Such matters may include, but are not limited to, proceedings involving:
(a)
The appointment or removal of a trustee or trust director;
(b)
Review of a trustee's fees or trust director's fees and review and settling of interim or final accountings;
(c)
Requests for instruction;
(d)
Declarations of rights;
(e)
Determinations as to the creation, existence, and validity of all or part of a trust;
(f)
The ascertainment of beneficiaries, and determinations of any other questions arising in the administration of distribution of any trust, including questions of construction in trust instruments, and the existence or nonexistence of any immunity, power, privilege, duty, or right;
(g)
The registration or release of registration of a trust;
(h)
A direction to compel or refrain from performing a particular act;
(i)
The amendment, modification, revocation, or termination of a trust;
(j)
The combination or division of trusts; or
(k)
Equitable doctrines of cy pres, equitable deviation, and other principles of equity pertaining to charitable and other trusts.
Amended by 2019 Ch. 51, § 3, 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. 1153, § 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 2 - JUDICIAL PROCEEDINGS (§§ 15-5-201 — 15-5-210) › Section 15-5-202 - Jurisdiction over trustee and beneficiary

(1)
By accepting the trusteeship of a trust having its principal place of administration in this state or by moving the principal place of administration to this state, the trustee submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust.
(2)
With respect to their interests in the trust, the beneficiaries of a trust that has its principal place of administration in this state or that is properly registered in this state are subject to the jurisdiction of the courts of this state regarding any matter involving the trust. By accepting a distribution from such a trust, the recipient submits personally to the jurisdiction of the courts of this state regarding any matter involving the trust.
(3)
This section does not preclude other methods of obtaining jurisdiction over a trustee, beneficiary, or other person receiving property from the trust.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1154, § 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 2 - JUDICIAL PROCEEDINGS (§§ 15-5-201 — 15-5-210) › Section 15-5-203 - Subject matter jurisdiction

(1)
The district court or, in the city and county of Denver, the probate court, has exclusive jurisdiction of proceedings in this state brought by a trustee, trust director, or beneficiary concerning the administration of a trust.
(2)
The district court or, in the city and county of Denver, the probate court, has concurrent jurisdiction with other district courts of this state of other proceedings involving trusts and third parties, such as proceedings by or against creditors or debtors of trusts.
(3)
This section does not preclude judicial or nonjudicial alternative dispute resolution.
Amended by 2019 Ch. 51, § 4, 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. 1154, § 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 2 - JUDICIAL PROCEEDINGS (§§ 15-5-201 — 15-5-210) › Section 15-5-204 - Venue

(1)
A judicial proceeding concerning the internal affairs of trusts and involving trustees, beneficiaries, or persons with authority to act under the trust instrument must be commenced in the following order of priority:
(a)
The county of venue specified by the terms of the trust if that county has a substantial relationship to the present administration of the trust;
(b)
The county in which the trust is registered;
(c)
Either:
(I)
The county in which the trust's principal place of administration is or is to be located; or
(II)
If the trust is created by a will, the county in which the decedent's estate is being administered.
(2)
If a trust has no trustee, a judicial proceeding for the appointment of a trustee must be commenced in the following order of priority:
(a)
The county required pursuant to subsection (1) of this section;
(b)
Any of the following:
(I)
A county in which a beneficiary resides;
(II)
A county in which the trust property, or some portion of the trust property, is located; or
(III)
A county in which a trust director resides or has a principal place of business.
(3)
A judicial proceeding other than one described in subsection (1) or (2) of this section must be commenced in accordance with the rules of venue applicable to civil actions.
Amended by 2019 Ch. 51, § 5, 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. 1154, § 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 2 - JUDICIAL PROCEEDINGS (§§ 15-5-201 — 15-5-210) › Section 15-5-205 - Registration of trusts

(1)
The trustee of a trust having its principal place of administration in this state may, after its acceptance of the trust, register the trust in the court of this state at the principal place of administration unless registration would be inconsistent with the retained jurisdiction of a foreign court from which the trustee cannot obtain release.
(2)
Registration of a fully and concurrently revocable inter vivos trust shall not be made until such a time as the settlor's power to revoke such a trust has terminated.
(3)
A trust that divides the corpus into multiple trusts or a will that creates multiple trusts needs only one registration rather than a registration of each separate trust.
(4)
This section and sections
15-5-206
to
15-5-209
do not apply to any trust created pursuant to section
15-14-412.5
or
15-14-412.6
.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1155, § 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 2 - JUDICIAL PROCEEDINGS (§§ 15-5-201 — 15-5-210) › Section 15-5-206 - Registration procedures and content of statement

(1)
Registration may be accomplished by filing a trust registration statement with the court as described in section
15-5-205
indicating the name and address of the trustee in which the trustee acknowledges the trusteeship. The statement must indicate whether the trust has been registered elsewhere, if known.
(2)
The statement must identify the trust as follows:
(a)
In the case of a testamentary trust, by the name of the testator and the date and place of domiciliary probate;
(b)
In the case of a written inter vivos trust, by the name of each settlor and the original trustee and the date of the trust instrument; or
(c)
In the case of an oral trust, by information identifying the settlor or other source of funds or assets and describing the time and manner of the trust's creation and the terms of the trust, including the subject matter, beneficiaries, and time of performance.
(3)
Within sixty days after filing the trust registration statement, the trustee shall notify in writing all cotrustees, qualified beneficiaries, and other fiduciaries and persons having authority to act under the terms of the trust. For purposes of privacy, the names of qualified beneficiaries may be redacted from the copy of the statement filed with the court or provided to other qualified beneficiaries.
(4)
The trust registration statement must contain language indicating that, because a court will not routinely review or adjudicate matters unless it is specifically requested to do so by a beneficiary, creditor, or other interested person, all interested persons, including beneficiaries and creditors, have the responsibility to protect their own rights and interests in the trust estate.
(5)
If a trust has been registered in a foreign court, registration in this state is ineffective to the extent it is inconsistent with the foreign registration until the earlier registration is released, or an instrument executed by the trustee and all qualified beneficiaries is filed with the registration in this state.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1155, § 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 2 - JUDICIAL PROCEEDINGS (§§ 15-5-201 — 15-5-210) › Section 15-5-207 - Effect of failure to register

A trustee who does not register a trust in a proper place, for purposes of any proceedings initiated by a beneficiary of the trust prior to registration, is subject to the personal jurisdiction of any court in which the trust could have been registered and otherwise as provided by section
15-5-205
. In addition, any trustee who, within thirty days after receipt of a written demand by a settlor or qualified beneficiary of the trust, fails to register a trust may be subject to removal or to surcharge as the court may direct.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1156, § 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 2 - JUDICIAL PROCEEDINGS (§§ 15-5-201 — 15-5-210) › Section 15-5-208 - Registration - qualification of a foreign trustee

A foreign corporate trustee is required to qualify as a foreign corporation doing business in this state if it maintains the principal place of administration of any trust within this state. A foreign cotrustee is not required to qualify in this state solely because its cotrustee maintains the principal place of administration in this state. Unless otherwise doing business in this state, local qualification by a foreign trustee, corporate or individual, is not required in order for the trustee to receive distribution from a local estate or to hold, invest in, manage, or acquire property located in this state, or maintain litigation. Nothing in this section affects a determination of what other acts require qualification as doing business in this state.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1156, § 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 2 - JUDICIAL PROCEEDINGS (§§ 15-5-201 — 15-5-210) › Section 15-5-209 - Release of trust registration statement

(1)
If a trust's principal place of administration changes after the trust has been registered in this state, the trustee may withdraw that registration by:
(a)
Filing a notice of release of trust registration statement in the same court in which the last registration statement was filed; and
(b)
Serving the notice of release upon all persons described in section
15-5-206 (3)
.
(2)
The trust registration is deemed released thirty-five days after the filing of the notice of release with the court unless an objection to the release is filed with that court and the objector files a notice to set a hearing on the objection within said period and serves the objection and the notice to set on those persons described in section
15-5-206 (3)
.
Added by 2018 Ch. 169, § 1, eff. 1/1/2019.
L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1157, § 1, effective 1/1/2019.