§ 15-1.2-501 — Disbursement from income

Colorado § 15-1.2-501

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

Text

(1) Subject to section 15-1.2-504,
and except as otherwise provided in section 15-1.2-601 (3)(b) or (3)(c), a fiduciary
shall disburse from income:

(a) One-half of:

(I) The regular compensation of the fiduciary and any person providing
investment advisory, custodial, or other services to the fiduciary, to the extent
income is sufficient; and

(II) An expense for an accounting, judicial or nonjudicial proceeding, or other
matter that involves both income and successive interests, to the extent income is
sufficient;

(b) The balance of the disbursements described in subsection (1)(a) of this
section, to the extent a fiduciary that is an independent person determines that
making those disbursements from income would be in the interests of the
beneficiaries;

(c) Another ordinary expense incurred in connection with administration,
management, or preservation of property and distribution of income, including
interest, an ordinary repair, regularly recurring tax assessed against principal, and
an expense of an accounting, judicial or nonjudicial proceeding, or other matter that
involves primarily an income interest, to the extent income is sufficient; and

(d) A premium on insurance covering loss of a principal asset or income from
or use of the asset.

Legislative History

Source: L. 2021: Entire article added, (SB 21-171), ch. 143, p. 831, � 1, effective January 1, 2022.