(1)A trustee shall administer the trust solely in
the interests of the beneficiaries.
(2)Subject to the rights of persons dealing with or assisting the trustee as
provided in section 15-5-1012, a sale, encumbrance, or other transaction involving
the investment or management of trust property entered into by the trustee for the
trustee's own personal account or that is otherwise affected by a conflict between
the trustee's fiduciary and personal interests is voidable by a beneficiary affected
by the transaction unless:
(a)The transaction was authorized by the terms of the trust;
(b)The transaction was approved by the court;
(c)The beneficiary did not commence a judicial proceeding within the time
allowed by section 15-5-1005;
(d)The beneficiary consented to the trustee's c
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(1) A trustee shall administer the trust solely in
the interests of the beneficiaries.
(2) Subject to the rights of persons dealing with or assisting the trustee as
provided in section 15-5-1012, a sale, encumbrance, or other transaction involving
the investment or management of trust property entered into by the trustee for the
trustee's own personal account or that is otherwise affected by a conflict between
the trustee's fiduciary and personal interests is voidable by a beneficiary affected
by the transaction unless:
(a) The transaction was authorized by the terms of the trust;
(b) The transaction was approved by the court;
(c) The beneficiary did not commence a judicial proceeding within the time
allowed by section 15-5-1005;
(d) The beneficiary consented to the trustee's conduct, ratified the
transaction, or released the trustee in compliance with section 15-5-1009; or
(e) The transaction involves a contract entered into or claim acquired by the
trustee before the person became or contemplated becoming trustee.
(3) A sale, encumbrance, or other transaction involving the investment or
management of trust property is presumed to be affected by a conflict between
personal and fiduciary interests if it is entered into by the trustee with:
(a) The trustee's spouse;
(b) The trustee's descendants, siblings, parents, or their spouses;
(c) An agent or attorney of the trustee; or
(d) A corporation or other person or enterprise in which the trustee, or a
person that owns a significant interest in the trustee, has an interest that might
affect the trustee's best judgment.
(4) A transaction between a trustee and a beneficiary that does not concern
trust property but that occurs during the existence of the trust or while the trustee
retains significant influence over the beneficiary and from which the trustee obtains
an advantage is voidable by the beneficiary unless the trustee establishes that the
transaction was fair to the beneficiary.
(5) A transaction not concerning trust property, and in which the trustee
engages in the trustee's individual capacity, involves a conflict between personal
and fiduciary interests if the transaction concerns an opportunity properly
belonging to the trust.
(6) An investment by a trustee in securities of an investment company or
investment trust to which the trustee or its affiliate provides services in a capacity
other than as trustee is not presumed to be affected by a conflict between personal
and fiduciary interests if the investment otherwise complies with the Colorado
Uniform Prudent Investor Act, article 1.1 of this title 15. In addition to its
compensation for acting as trustee, the trustee may be compensated by the
investment company or investment trust for providing those services out of fees
charged to the trust. If the trustee receives compensation from the investment
company or investment trust for providing investment advisory or investment
management services, the trustee must at least annually notify the persons entitled
pursuant to section 15-5-813 to receive a copy of the trustee's annual report of the
rate and method by which that compensation was determined.
(7) In voting shares of stock or in exercising powers of control over similar
interests in other forms of enterprise, the trustee shall act in the best interests of
the beneficiaries. If the trust is the sole owner of a corporation or other form of
enterprise, the trustee shall elect or appoint directors or other managers who will
manage the corporation or enterprise in the best interests of the beneficiaries.
(8) This section does not preclude the following transactions, if fair to the
beneficiaries:
(a) An agreement between a trustee and a beneficiary relating to the
appointment or compensation of the trustee;
(b) Payment of reasonable compensation to the trustee;
(c) A transaction between a trust and another trust, decedent's estate,
guardianship, or conservatorship of which the trustee is a fiduciary or in which a
beneficiary has an interest;
(d) A deposit of trust money in a regulated financial service institution
operated by the trustee; or
(e) An advance by the trustee of money for the protection of the trust.
(9) The court may appoint a special fiduciary to make a decision with respect
to any proposed transaction that might violate this section if entered into by the
trustee.