§ 15-1.2-410 — Liquidating asset - definition

Colorado § 15-1.2-410

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

Text

(1) In this section, liquidating
asset means an asset whose value will diminish or terminate because the asset is
expected to produce receipts for a limited time. The term includes a leasehold,
patent, copyright, royalty right, and right to receive payments during a period of
more than one year under an arrangement that does not provide for the payment of
interest on the unpaid balance.

(2) This section does not apply to a receipt subject to section 15-1.2-401, 15-1.2-409, 15-1.2-411, 15-1.2-412, 15-1.2-414, 15-1.2-415, 15-1.2-416, or 15-1.2-503.

(3) A fiduciary shall allocate:

(a) To income:

(I) A receipt produced by a liquidating asset, to the extent the receipt does
not exceed four percent of the value of the asset; or

(II) If the fiduciary cannot determine the value of the asset, ten percent of
the receipt; and

(b) To principal, the balance of the receipt.

Legislative History

Source: L. 2021: Entire article added, (SB 21-171), ch. 143, p. 827, � 1, effective January 1, 2022.