§ 15-1.2-303 — Authority of fiduciary

Colorado § 15-1.2-303

• Jurisdiction: Colorado
• Title 15: Probate,
• Art.: Uniform Fiduciary Income and Principal Act

Text

(1) A fiduciary, without court approval, by
complying with subsections (2) and (6) of this section, may:

(a) Convert an income trust to a unitrust if the fiduciary adopts in a record a
unitrust policy for the trust providing:

(I) That in administering the trust the net income of the trust will be a
unitrust amount rather than net income determined without regard to this part 3;
and

(II) The percentage and method used to calculate the unitrust amount;

(b) Change the percentage or method used to calculate a unitrust amount
for a unitrust if the fiduciary adopts in a record a unitrust policy or an amendment or
replacement of a unitrust policy providing changes in the percentage or method
used to calculate the unitrust amount; or

(c) Convert a unitrust to an income trust if the fiduciary adopts in a record a
determination that, in administering the trust, the net income of the trust will be net
income determined without regard to this part 3 rather than a unitrust amount.

(2) A fiduciary may take an action under subsection (1) of this section if:

(a) The fiduciary determines that the action will assist the fiduciary to
administer a trust impartially;

(b) The fiduciary sends a notice in a record, in the manner required by section
15-1.2-304, describing and proposing to take the action;

(c) The fiduciary sends a copy of the notice under subsection (2)(b) of this
section to each settlor of the trust which is:

(I) If an individual, living; or

(II) If not an individual, in existence;

(d) At least one member of each class of the qualified beneficiaries
determined under section 15-5-103 (16) of the Colorado Uniform Trust Code, other
than the attorney general, receiving the notice under subsection (2)(b) of this
section is:

(I) If an individual, legally competent;

(II) If not an individual, in existence; or

(III) Represented in the manner provided in section 15-1.2-304 (2); and

(e) The fiduciary does not receive, by the date specified in the notice under
section 15-1.2-304 (4)(e), an objection in a record to the action proposed under
subsection (2)(b) of this section from a person to which the notice under subsection
(2)(b) of this section is sent.

(3) If a fiduciary receives, not later than the date stated in the notice under
section 15-1.2-304, an objection in a record described in section 15-1.2-304 to a
proposed action, the fiduciary or a beneficiary may request the court to have the
proposed action taken as proposed, taken with modifications, or prevented. A
person described in section 15-1.2-304 (1) may oppose the proposed action in the
proceeding under this subsection (3), whether or not the person:

(a) Consented under section 15-1.2-304; or

(b) Objected under section 15-1.2-304.

(4) If, after sending a notice under subsection (2)(b) of this section, a
fiduciary decides not to take the action proposed in the notice, the fiduciary shall
notify in a record each person described in section 15-1.2-304 (1) of the decision not
to take the action and the reasons for the decision.

(5) If a beneficiary requests in a record that a fiduciary take an action
described in subsection (1) of this section and the fiduciary declines to act or does
not act within ninety days after receiving the request, the beneficiary may request
the court to direct the fiduciary to take the action requested.

(6) In deciding whether and how to take an action authorized by subsection
(1) of this section, or whether and how to respond to a request by a beneficiary
under subsection (5) of this section, a fiduciary shall consider all factors relevant to
the trust and the beneficiaries, including relevant factors in section 15-1.2-201 (5).

(7) A fiduciary may release or delegate the power to convert an income trust
to a unitrust under subsection (1)(a) of this section, change the percentage or
method used to calculate a unitrust amount under subsection (1)(b) of this section,
or convert a unitrust to an income trust under subsection (1)(c) of this section, for a
reason described in section 15-1.2-203 (7) and in the manner described in section
15-1.2-203 (8).

Legislative History

Source: L. 2021: Entire article added, (SB 21-171), ch. 143, p. 812, � 1, effective January 1, 2022.