§ 15-1.5-112 — Liability to third persons

Colorado § 15-1.5-112

• Jurisdiction: Colorado
• Title 15: Probate,
• Art.: Colorado Uniform Custodial Trust Act

Text

(1) A claim based on a contract entered
into by a custodial trustee acting in a fiduciary capacity, an obligation arising from
the ownership or control of custodial trust property, or a tort committed in the
course of administering the custodial trust may be asserted by a third person
against the custodial trust property by proceeding against the custodial trustee in a
fiduciary capacity, whether or not the custodial trustee or the beneficiary is
personally liable.

(2) A custodial trustee is not personally liable to a third person:

(a) On a contract properly entered into in a fiduciary capacity unless the
custodial trustee fails to reveal that capacity or to identify the custodial trust in the
contract; or

(b) For an obligation arising from control of custodial trust property or for a
tort committed in the course of the administration of the custodial trust unless the
custodial trustee is personally at fault.

(3) A beneficiary is not personally liable to a third person for an obligation
arising from beneficial ownership of custodial trust property or for a tort committed
in the course of administration of the custodial trust unless the beneficiary is
personally in possession of the custodial trust property giving rise to the liability or
is personally at fault.

(4) Subsections (2) and (3) of this section do not preclude actions or
proceedings to establish liability of the custodial trustee or beneficiary to the
extent the person sued is protected as the insured by liability insurance.

Legislative History

Source: L. 99: Entire article added, p. 1218, � 1 effective August 4.