§ 15-5-210 — Judicially approved settlements

Colorado § 15-5-210

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

Text

(1) A settlement of any
controversy as to the administration of a trust; the construction, validity, or effect
of any trust; or the rights or interests of the beneficiaries or persons having claims
against a trust, if approved in a formal proceeding in the court for that purpose, is
binding on all parties thereto, including an unborn individual, an unascertained
individual, or a person who could not be located. An approved settlement does not
impair the rights of creditors or taxing authorities who are not parties to it.

(2) Notice of a judicially approved settlement must be given to every
interested person or to one who can bind an interested person as provided in this
code.

(3) The procedure for securing court approval of a settlement is as follows:

(a) The terms of the settlement must be set forth in an agreement in writing,
which must be executed by all competent persons and parents of any minor child
having a beneficial interest or having claims that will or may be affected by the
settlement. Execution is not required by any person whose identity or whereabouts
are unknown and cannot be reasonably ascertained.

(b) Any interested person, including a trustee, then may submit the
settlement to the court for its approval and for execution by the trustee, the trustee
of every affected testamentary trust, other fiduciaries, and representatives.

(c) After notice to all interested persons or their representatives, the court, if
it finds that the contest or controversy is in good faith and that the effect of the
settlement upon the interests of the persons represented by the fiduciaries or
representatives is just and reasonable, shall make an order approving the
settlement and directing all fiduciaries under its supervision to execute the
agreement. A minor child represented only by his or her parents may be bound only
if there is no conflict of interest between the parent and the child. Upon the making
of the order and the execution of the settlement, all further disposition of trust
property affected by the settlement must be in accordance with the terms of the
settlement.

(4) Notice to a person who may be represented and bound pursuant to this
code of an agreement to be approved by the court must be given:

(a) Directly to the person or to one who may bind the person if the person
may be represented and bound pursuant to section 15-5-302 or 15-5-303; or

(b) In the case of a person who may be represented and bound pursuant to
section 15-5-304 and who is unborn or whose identity or location is unknown and
not reasonably ascertainable, to all persons whose interests in the judicial
proceedings are substantially identical and whose identities and locations are
known; or, in the case of other persons who may be represented and bound
pursuant to section 15-5-304, directly to the person.

Legislative History

Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1157, � 1, effective January 1, 2019.