§ 15-16-914 — Protection of charitable interest - definitions

Colorado § 15-16-914

• Jurisdiction: Colorado
• Title 15: Probate,
• Art.: Trust Administration

Text

(1) As used in this
section, unless the context otherwise requires:

(a) Determinable charitable interest means a charitable interest that is a
right to a mandatory distribution currently, periodically, on the occurrence of a
specified event, or after the passage of a specified time and which is unconditional
or will be held solely for charitable purposes.

(b) Unconditional means not subject to the occurrence of a specified event
that is not certain to occur, other than a requirement in a trust instrument that a
charitable organization be in existence or qualify under a particular provision of the
federal Internal Revenue Code of 1986, as amended, on the date of the
distribution, if the charitable organization meets the requirement on the date of
determination.

(2) If a first trust contains a determinable charitable interest, the attorney
general has the rights of a qualified beneficiary and may represent and bind the
charitable interest.

(3) If a first trust contains a charitable interest, the second trust or trusts
may not:

(a) Diminish the charitable interest;

(b) Diminish the interest of an identified charitable organization that holds
the charitable interest;

(c) Alter any charitable purpose stated in the first-trust instrument; or

(d) Alter any condition or restriction related to the charitable interest.

(4) If there are two or more second trusts, the second trusts shall be treated
as one trust for purposes of determining whether the exercise of the decanting
power diminishes the charitable interest or diminishes the interest of an identified
charitable organization for purposes of subsection (3) of this section.

(5) If a first trust contains a determinable charitable interest, the second
trust or trusts that include a charitable interest pursuant to subsection (3) of this
section must be administered under the law of this state unless:

(a) The attorney general, after receiving notice under section 15-16-907, fails
to object in a signed record delivered to the authorized fiduciary within the notice
period;

(b) The attorney general consents in a signed record to the second trust or
trusts being administered under the law of another jurisdiction; or

(c) The court approves the exercise of the decanting power.

(6) This part 9 does not limit the powers and duties of the attorney general
under law of this state other than this part 9.

Legislative History

Source: L. 2016: Entire part added, (SB 16-085), ch. 228, p. 882, � 1, effective August 10.