Colorado § 15-1.1-102 Standard of care - portfolio strategy - risk and return objectives

Colorado Statutes

§ 15-1.1-102 — Standard of care - portfolio strategy - risk and return objectives

Colorado § 15-1.1-102

Title 15Probate,

Art.Uniform Prudent Investor Act

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Bluebook

Colo. Rev. Stat. § 15-1.1-102 (2026).

Text

(a)A trustee shall invest and manage trust assets as a prudent investor would, by considering the purposes, terms, distribution requirements, and other circumstances of the trust. In satisfying this standard, the trustee shall exercise reasonable care, skill, and caution.

(b)A trustee's investment and management decisions respecting individual assets must be evaluated not in isolation but in the context of the trust portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.

(c)Among circumstances that a trustee shall consider in investing and managing trust assets are such of the following as are relevant to the trust or its beneficiaries:

(1)General economic conditions;

(2)The possible effect of i

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(a) A trustee shall invest and manage trust assets as a prudent investor would, by
considering the purposes, terms, distribution requirements, and other
circumstances of the trust. In satisfying this standard, the trustee shall exercise
reasonable care, skill, and caution.

(b) A trustee's investment and management decisions respecting individual
assets must be evaluated not in isolation but in the context of the trust portfolio as
a whole and as a part of an overall investment strategy having risk and return
objectives reasonably suited to the trust.

(c) Among circumstances that a trustee shall consider in investing and
managing trust assets are such of the following as are relevant to the trust or its
beneficiaries:

(1) General economic conditions;

(2) The possible effect of inflation or deflation;

(3) The expected tax consequences of investment decisions or strategies;

(4) The role that each investment or course of action plays within the overall
trust portfolio, which may include financial assets, interests in closely held
enterprises, tangible and intangible personal property, and real property;

(5) The expected total return from income and the appreciation of capital;

(6) Other resources of the beneficiaries;

(7) Needs for liquidity, regularity of income, and preservation or appreciation
of capital; and

(8) An asset's special relationship or special value, if any, to the purposes of
the trust or to one or more of the beneficiaries.

(d) A trustee shall make a reasonable effort to verify facts relevant to the
investment and management of trust assets.

(e) A trustee may invest in any kind of property or type of investment
consistent with the standards of this article.

(f) A trustee who has special skills or expertise, or is named trustee in
reliance upon the trustee's representation that the trustee has special skills or
expertise, has a duty to use those special skills or expertise.