C.R.S. § 15-16-801 Short title
15-16-801. Short title. This short title of this part 8 is the "Colorado Uniform Directed Trust Act".
Trust Administration
C.R.S. tit. 15, art. 16
in effectC.R.S. § 15-16-802 Definitions
15-16-802. Definitions. As used in this part 8, unless the context otherwise requires:
(1) "Breach of trust" includes a violation by a trust director or trustee of a duty imposed on that director or trustee by the terms of the trust, this part 8, or law of this state other than this part 8 pertaining to trusts.
(2) "Directed trust" means a trust for which the terms of the trust grant a power of direction.
(3) "Directed trustee" means a trustee that is subject to a trust director's power of direction.
(4) "Person" means an individual, estate, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity.
(5) "Power of direction" means a power over a trust granted to a person by the terms of the trust to the extent the power is exercisable while the person is not serving as a trustee. The term includes a power over the investment, management, or distribution of trust property or other matters of trust administration. The term excludes the powers described in section 15-16-805 (2).
(6) "Settlor" means a person, including a testator, that creates, or contributes property to, a trust. If more than one person creates or contributes property to a trust, each person is a settlor of the portion of the trust property attributable to that person's contribution except to the extent another person has the power to revoke or withdraw that portion.
(7) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any other territory or possession subject to the jurisdiction of the United States.
(8) "Terms of a trust" means:
(a) Except as otherwise provided in subsection (8)(b) of this section, the manifestation of the settlor's intent regarding a trust's provisions as:
(I) Expressed in the trust instrument; or
(II) As may be established by other evidence in a judicial proceeding; or
(b) The trust's provisions as established, determined, or amended by:
(I) A trustee or trust director in accordance with applicable law;
(II) Court order;
(III) A nonjudicial settlement agreement; or
(IV) By alternative dispute resolution.
(9) "Trust director" means a person that is granted a power of direction by the terms of a trust to the extent the power is exercisable while the person is not serving as a trustee. The person is a trust director whether or not the terms of the trust refer to the person as a trust director and whether or not the person is a beneficiary or settlor of the trust.
(10) "Trustee" includes an original, additional, and successor trustee, and a cotrustee.
(11) "Willful misconduct" means intentional wrongdoing and not mere negligence, gross negligence, or recklessness.
(12) "Wrongdoing" means malicious conduct or conduct designed to defraud or seek an unconscionable advantage.
C.R.S. § 15-16-803 Application - principal place of administration
15-16-803. Application - principal place of administration. (1) This part 8 applies to a trust, whenever created, that has its principal place of administration in this state, subject to the following rules:
(a) If the trust was created before August 2, 2019, this part 8, as amended in 2019, applies only to a decision or action occurring on or after August 2, 2019.
(b) If the principal place of administration of the trust is changed to this state on or after August 2, 2019, this part 8 applies only to a decision or action occurring on or after the date of the change.
(2) Without precluding other means to establish a sufficient connection with the designated jurisdiction in a directed trust, terms of the trust that designate the principal place of administration of the trust are valid and controlling if:
(a) A trustee's principal place of business is located in or a trustee is a resident of the designated jurisdiction;
(b) A trust director's principal place of business is located in or a trust director is a resident of the designated jurisdiction;
(c) All or part of the administration occurs in the designated jurisdiction; or
(d) The trust is duly registered with a court in the designated jurisdiction.
C.R.S. § 15-16-804 Common law and principles of equity
15-16-804. Common law and principles of equity. The common law and principles of equity supplement this part 8, except to the extent modified by this part 8 or law of this state other than this part 8.
C.R.S. § 15-16-805 Exclusions - definition
15-16-805. Exclusions - definition. (1) In this section, "power of appointment" means a power that enables a person acting in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of appointment over trust property.
(2) This act does not apply to a:
(a) Power of appointment;
(b) Power to appoint or remove a trustee or trust director;
(c) Power of a settlor over a trust to the extent the settlor has a power to revoke the trust;
(d) Power of a beneficiary over a trust to the extent the exercise or nonexercise of the power affects the beneficial interest of:
(I) The beneficiary; or
(II) Another beneficiary represented by the beneficiary under sections 15-5-301 to 15-5-305 with respect to the exercise or nonexercise of the power;
(e) Power over a trust if:
(I) The terms of the trust provide that the power is held in a nonfiduciary capacity; and
(II) The power must be held in a nonfiduciary capacity to achieve the settlor's tax objectives under the federal "Internal Revenue Code of 1986", as amended, and regulations issued thereunder, as amended; or
(f) A power under section 15-5-409.5 (1)(d) to enforce the intended use of the principal and income of a trust authorized by section 15-5-408 for the care of designated domestic or pet animals and the animals' offspring in gestation, if the power is held by a person having custody of an animal for which care is provided by the trust or by a remainder beneficiary of the trust, unless the terms of the trust specifically provide that the power held by the custodian or remainder beneficiary is subject to this part 8.
(3) Unless the terms of a trust provide otherwise, a power granted to a person to designate a recipient of an ownership interest in or power of appointment over trust property that is exercisable while the person is not serving as a trustee is a power of appointment and not a power of direction.
C.R.S. § 15-16-806 Powers of trust director
15-16-806. Powers of trust director. (1) Subject to section 15-16-807, the terms of a trust may grant a power of direction to a trust director.
(2) Unless the terms of a trust provide otherwise:
(a) A trust director may exercise any further power appropriate to the exercise or nonexercise of a power of direction granted to the director under subsection (1) of this section; and
(b) Trust directors with joint powers must act by majority decision.
C.R.S. § 15-16-807 Limitations on powers of trust director
15-16-807. Limitations on powers of trust director. (1) A trust director is subject to the same rules as a trustee in a like position and under similar circumstances in the exercise or nonexercise of a power of direction regarding:
(a) A payback provision in the terms of the trust necessary for compliance with the reimbursement requirements of medicaid law in section 1917 of the federal "Social Security Act", 42 U.S.C. sec. 1396p (d)(4)(A), as amended, and regulations issued thereunder, as amended; and
(b) A charitable interest in the trust, including notice regarding the interest to the attorney general.
C.R.S. § 15-16-808 Duty and liability of trust director
15-16-808. Duty and liability of trust director. (1) Subject to subsection (2) of this section, with respect to a power of direction or a further power under section 15-16-806 (2)(a):
(a) A trust director has the same fiduciary duty and liability in the exercise or nonexercise of the power:
(I) If the power is held individually, as a sole trustee in a like position and under similar circumstances; or
(II) If the power is held jointly with a trustee or another trust director, as a cotrustee in a like position and under similar circumstances; and
(b) The terms of the trust may vary the director's duty or liability to the same extent the terms of the trust could vary the duty or liability of a trustee in a like position and under similar circumstances.
(2) Unless the terms of a trust provide otherwise, if a trust director is licensed, certified, or otherwise authorized or permitted by law other than this part 8 to provide health care in the ordinary course of the director's business or practice of a profession, to the extent the director acts in that capacity, the director has no duty or liability under this part 8.
(3) The terms of a trust may impose a duty or liability on a trust director in addition to the duties and liabilities under this section.
C.R.S. § 15-16-809 Duty and liability of directed trustee
15-16-809. Duty and liability of directed trustee. (1) Subject to subsection (2) of this section, a directed trustee shall take reasonable action to comply with a trust director's exercise or nonexercise of a power of direction or further power under section 15-16-806 (2)(a), and the trustee is not liable for the action.
(2) A directed trustee must not comply with a trust director's exercise or nonexercise of a power of direction or further power under section 15-16-806 (2)(a) to the extent that by complying the trustee would engage in willful misconduct.
(3) An exercise of a power of direction under which a trust director may release a trustee or another trust director from liability for breach of trust is not effective if:
(a) The breach involved the trustee's or other director's willful misconduct;
(b) The release was induced by improper conduct of the trustee or other director in procuring the release; or
(c) At the time of the release, the director did not know the material facts relating to the breach.
(4) A directed trustee that has reasonable doubt about its duty under this section may petition the court for instructions.
(5) The terms of a trust may impose a duty or liability on a directed trustee in addition to the duties and liabilities under this section.
C.R.S. § 15-16-810 Duty to provide information to trust director or trustee
15-16-810. Duty to provide information to trust director or trustee. (1) Subject to section 15-16-811, a trustee shall provide information to a trust director to the extent the information is reasonably related both to:
(a) The powers or duties of the trustee; and
(b) The powers or duties of the director.
(2) Subject to section 15-16-811, a trust director shall provide information to a trustee or another trust director to the extent the information is reasonably related both to:
(a) The powers or duties of the director; and
(b) The powers or duties of the trustee or other director.
(3) A trustee that acts in reliance on information provided by a trust director is not liable for a breach of trust to the extent the breach resulted from the reliance, unless by so acting the trustee engages in willful misconduct.
(4) A trust director that acts in reliance on information provided by a trustee or another trust director is not liable for a breach of trust to the extent the breach resulted from the reliance, unless by so acting the trust director engages in willful misconduct.
(5) A trustee shall provide a copy of the terms of the trust to a trust director.
C.R.S. § 15-16-811 No duty to monitor, inform, or advise
15-16-811. No duty to monitor, inform, or advise. (1) Unless the terms of a trust provide otherwise:
(a) A trustee does not have a duty to:
(I) Monitor a trust director; or
(II) Inform or give advice to a settlor, beneficiary, trustee, or trust director concerning an instance in which the trustee might have acted differently than the director; and
(b) By taking an action described in subsection (1)(a) of this section, a trustee does not assume a duty excluded by subsection (1)(a) of this section.
(2) Unless the terms of a trust provide otherwise:
(a) A trust director does not have a duty to:
(I) Monitor a trustee or another trust director; or
(II) Inform or give advice to a settlor, beneficiary, trustee, or another trust director concerning an instance in which the director might have acted differently than a trustee or another trust director; and
(b) By taking an action described in subsection (2)(a) of this section, a trust director does not assume the duty excluded by subsection (2)(a) of this section.
(3) Unless the terms of a trust provide otherwise, section 15-5-1012 does not apply to a trust director.
C.R.S. § 15-16-812 Application to cotrustee
15-16-812. Application to cotrustee. The terms of a trust may relieve a cotrustee from duty and liability with respect to another cotrustee's exercise or nonexercise of a power of the other cotrustee to the same extent that in a directed trust a directed trustee is relieved from duty and liability with respect to a trust director's power of direction under sections 15-16-809 to 15-16-811.
C.R.S. § 15-16-813 Limitations of action against trust director
15-16-813. Limitations of action against trust director. (1) An action against a trust director for breach of trust must be commenced within the same limitations period as an action against a trustee for a similar breach of trust as prescribed by section 15-5-1005.
(2) A report or accounting has the same effect on the limitations period for an action against the director that the report or accounting would have if the director were a trustee as prescribed by section 15-5-1005.
C.R.S. § 15-16-814 Defenses in action against trust director
15-16-814. Defenses in action against trust director. In an action against a trust director for breach of trust, the director may assert the same defenses a trustee in a like position and under similar circumstances could assert in an action for breach of trust against the trustee.
C.R.S. § 15-16-815 Jurisdiction over trust director
15-16-815. Jurisdiction over trust director. (1) By accepting appointment as a trust director of a trust subject to this part 8, the director submits to personal jurisdiction of the courts of this state regarding any matter related to a power or duty of the director.
(2) This section does not preclude other methods of obtaining jurisdiction over a trust director.
C.R.S. § 15-16-816 Office of trust director
15-16-816. Office of trust director. (1) Unless the terms of a trust provide otherwise, the rules applicable to a trustee apply to a trust director regarding the following matters:
(a) Acceptance under section 15-5-701;
(b) Giving of bond to secure performance under section 15-5-702;
(c) Reasonable compensation under sections 15-5-1004, 15-10-501 (3), and 15-10-601;
(d) Resignation under section 15-5-705;
(e) Removal under section 15-5-706;
(f) Vacancy and appointment of successor under section 15-5-704; and
(g) The right to petition the court for instructions under section 15-5-201 (3).
C.R.S. § 15-16-817 Uniformity of application and construction
15-16-817. Uniformity of application and construction. In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
C.R.S. § 15-16-818 Relation to electronic signatures in global and national commerce act
15-16-818. Relation to electronic signatures in global and national commerce act. This part 8 modifies, limits, or supersedes the federal "Electronic Signatures in Global and National Commerce Act", 15 U.S.C. sec. 7001 et seq., but does not modify, limit, or supersede section 101 (c) of that act, 15 U.S.C. sec. 7001 (c), or authorize electronic delivery of any of the notices described in section 103 (b) of that act, 15 U.S.C. sec. 7003 (b).
C.R.S. § 15-16-901 Short title
15-16-901. Short title. The short title of this part 9 is the "Colorado Uniform Trust Decanting Act".
C.R.S. § 15-16-902 Definitions
15-16-902. Definitions. As used in this part 9, unless the context otherwise requires:
(1) "Appointive property" means the property or property interest subject to a power of appointment.
(2) "Ascertainable standard" means a standard relating to an individual's health, education, support, or maintenance within the meaning of 26 U.S.C. sec. 2041 (b)(1)(A), as amended, or 26 U.S.C. sec. 2514 (c)(1), as amended, and any applicable regulations.
(3) "Authorized fiduciary" means:
(a) A trustee or other fiduciary, other than a settlor, that has discretion to distribute or direct a trustee to distribute part or all of the principal of the first trust to one or more current beneficiaries;
(b) A special fiduciary appointed under section 15-16-909; or
(c) A special-needs fiduciary under section 15-16-913.
(4) "Beneficiary" means a person that:
(a) Has a present or future, vested or contingent, beneficial interest in a trust;
(b) Holds a power of appointment over trust property; or
(c) Is an identified charitable organization that will or may receive distributions under the terms of the trust.
(5) "Charitable interest" means an interest in a trust which:
(a) Is held by an identified charitable organization and makes the organization a qualified beneficiary;
(b) Benefits only charitable organizations and, if the interest were held by an identified charitable organization, would make the organization a qualified beneficiary; or
(c) Is held solely for charitable purposes and, if the interest were held by an identified charitable organization, would make the organization a qualified beneficiary.
(6) "Charitable organization" means:
(a) A person, other than an individual, organized and operated exclusively for charitable purposes; or
(b) A government or governmental subdivision, agency, or instrumentality, to the extent it holds funds exclusively for a charitable purpose.
(7) "Charitable purpose" means the relief of poverty, the advancement of education or religion, the promotion of health, a municipal or other governmental purpose, or another purpose, the achievement of which is beneficial to the community.
(8) "Court" means the court in this state having jurisdiction in matters relating to trusts.
(9) "Current beneficiary" means a beneficiary that on the date the beneficiary's qualification is determined is a distributee or permissible distributee of trust income or principal. The term includes the holder of a presently exercisable general power of appointment but does not include a person that is a beneficiary only because the person holds any other power of appointment.
(10) "Decanting power" or "the decanting power" means the power of an authorized fiduciary under this part 9 to distribute property of a first trust to one or more second trusts or to modify the terms of the first trust.
(11) "Expanded distributive discretion" means a discretionary power of distribution that is not limited to an ascertainable standard or a reasonably definite standard.
(12) "First trust" means a trust over which an authorized fiduciary may exercise the decanting power.
(13) "First-trust instrument" means the trust instrument for a first trust.
(14) "General power of appointment" means a power of appointment exercisable in favor of a powerholder, the powerholder's estate, a creditor of the powerholder, or a creditor of the powerholder's estate.
(15) "Jurisdiction", with respect to a geographic area, includes a state or country.
(16) "Person" means an individual, estate, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity.
(17) "Power of appointment" means a power that enables a powerholder acting in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of appointment over the appointive property. The term does not include a power of attorney.
ss or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity.
(17) "Power of appointment" means a power that enables a powerholder acting in a nonfiduciary capacity to designate a recipient of an ownership interest in or another power of appointment over the appointive property. The term does not include a power of attorney.
(18) "Powerholder" means a person in which a donor creates a power of appointment.
(19) "Presently exercisable power of appointment" means a power of appointment exercisable by the powerholder at the relevant time. The term:
(a) Includes a power of appointment exercisable only after the occurrence of a specified event, the satisfaction of an ascertainable standard, or the passage of a specified time only after:
(I) The occurrence of the specified event;
(II) The satisfaction of the ascertainable standard; or
(III) The passage of the specified time; and
(b) Does not include a power exercisable only at the powerholder's death.
(20) "Qualified beneficiary" means a beneficiary that on the date the beneficiary's qualification is determined:
(a) Is a distributee or permissible distributee of trust income or principal;
(b) Would be a distributee or permissible distributee of trust income or principal if the interests of the distributees described in paragraph (a) of this subsection (20) terminated on that date without causing the trust to terminate; or
(c) Would be a distributee or permissible distributee of trust income or principal if the trust terminated on that date.
(21) "Reasonably definite standard" means a clearly measurable standard under which a holder of a power of distribution is legally accountable within the meaning of 26 U.S.C. sec. 674 (b)(5)(A), as amended, and any applicable regulations.
(22) "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
(23) "Second trust" means:
(a) A first trust after modification under this part 9; or
(b) A trust to which a distribution of property from a first trust is or may be made under this part 9.
(24) "Second-trust instrument" means the trust instrument for a second trust.
(25) "Settlor", except as otherwise provided in section 15-16-925, means a person, including a testator, that creates or contributes property to a trust. If more than one person creates or contributes property to a trust, each person is a settlor of the portion of the trust property attributable to the person's contribution except to the extent another person has power to revoke or withdraw that portion.
(26) "Sign" means, with present intent to authenticate or adopt a record:
(a) To execute or adopt a tangible symbol; or
(b) To attach to or logically associate with the record an electronic symbol, sound, or process.
(27) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
(28) "Terms of the trust" means the manifestation of the settlor's intent regarding a trust's provisions as expressed in the trust instrument, as may be established by other evidence that would be admissible in a judicial proceeding, or as may be established by court order or nonjudicial settlement agreement.
(29) "Trust instrument" means a record executed by the settlor to create a trust or by any person to create a second trust which contains some or all of the terms of the trust, including any amendments.
C.R.S. § 15-16-903 Scope - definitions
15-16-903. Scope - definitions. (1) Except as otherwise provided in subsections (2) and (3) of this section, this part 9 applies to an express trust that is:
(a) Irrevocable; or
(b) Revocable by the settlor only with the consent of the trustee or a person holding an adverse interest.
(2) This part 9 does not apply to a trust held solely for charitable purposes.
(3) Subject to section 15-16-915, a trust instrument may restrict or prohibit exercise of the decanting power.
(4) This part 9 does not limit the power of a trustee, powerholder, or other person to distribute or appoint property in further trust or to modify a trust under the trust instrument, law of this state other than this part 9, common law, a court order, or a nonjudicial settlement agreement.
(5) This part 9 does not affect the ability of a settlor to provide in a trust instrument for the distribution of the trust property or appointment in further trust of the trust property or for modification of the trust instrument.
(6) (a) Neither this part 9 nor an exercise of the decanting power described in this part 9 affects:
(I) The determination whether a beneficial interest in a first trust or second trust is property or an asset of a spouse for purposes of distribution of property under section 14-10-113, C.R.S.; or
(II) The power of a divorce court to fashion remedies between the parties in an action under title 14, C.R.S.
(b) Nothing in this subsection (6) expands or limits the power of a divorce court in law or equity over a first trust or a second trust or any trustee thereof.
(c) As used in this subsection (6), unless the context requires otherwise, "divorce court" means a court in this state having jurisdiction over matters brought pursuant to title 14, C.R.S.
C.R.S. § 15-16-904 Fiduciary duty
15-16-904. Fiduciary duty. (1) In exercising the decanting power, an authorized fiduciary shall act in accordance with its fiduciary duties, including the duty to act in accordance with the purposes of the first trust.
(2) This part 9 does not create or imply a duty to exercise the decanting power or to inform beneficiaries about the applicability of this part 9.
(3) Except as otherwise provided in a first-trust instrument, for purposes of this part 9 the terms of the first trust are deemed to include the decanting power.
C.R.S. § 15-16-905 Application - governing law
15-16-905. Application - governing law. (1) This part 9 applies to a trust created before, on, or after August 10, 2016, which:
(a) Has its principal place of administration in this state, including a trust whose principal place of administration has been changed to this state; or
(b) Provides by its trust instrument that it is governed by the law of this state or is governed by the law of this state for the purpose of:
(I) Administration, including administration of a trust whose governing law for purposes of administration has been changed to the law of this state;
(II) Construction of terms of the trust; or
(III) Determining the meaning or effect of terms of the trust.
C.R.S. § 15-16-906 Reasonable reliance
15-16-906. Reasonable reliance. A trustee or other person that reasonably relies on the validity of a distribution of part or all of the property of a trust to another trust, or a modification of a trust, under this part 9, law of this state other than this part 9, or the law of another jurisdiction is not liable to any person for any action or failure to act as a result of the reliance.
C.R.S. § 15-16-907 Notice - exercise of decanting power
15-16-907. Notice - exercise of decanting power. (1) In this section, a notice period begins on the day notice is given under subsection (3) of this section and ends sixty-two days after the day notice is given.
(2) Except as otherwise provided in this part 9, an authorized fiduciary may exercise the decanting power without the consent of any person and without court approval.
(3) Except as otherwise provided in subsection (6) of this section, an authorized fiduciary shall give notice in a record of the intended exercise of the decanting power not later than sixty-three days before the exercise to:
(a) Each settlor of the first trust, if living or then in existence;
(b) Each qualified beneficiary of the first trust;
(c) Each holder of a presently exercisable power of appointment over any part or all of the first trust;
(d) Each person that currently has the right to remove or replace the authorized fiduciary;
(e) Each other fiduciary of the first trust;
(f) Each fiduciary of the second trust; and
(g) The attorney general, if section 15-16-914 (2) applies.
(4) An authorized fiduciary is not required to give notice under subsection (3) of this section to a qualified beneficiary who is a minor and has no representative or to a person that is not known to the fiduciary or is known to the fiduciary but cannot be located by the fiduciary after reasonable diligence.
(5) A notice under subsection (3) of this section must:
(a) Specify the manner in which the authorized fiduciary intends to exercise the decanting power;
(b) Specify the proposed effective date for exercise of the power;
(c) Include a copy of the first-trust instrument; and
(d) Include a copy of all second-trust instruments.
(6) The decanting power may be exercised before expiration of the notice period under subsection (1) of this section if all persons entitled to receive notice waive the period in a signed record.
(7) The receipt of notice, waiver of the notice period, or expiration of the notice period does not affect the right of a person to file an application under section 15-16-909 asserting that:
(a) An attempted exercise of the decanting power is ineffective because it did not comply with this part 9 or was an abuse of discretion or breach of fiduciary duty; or
(b) Section 15-16-922 applies to the exercise of the decanting power.
(8) An exercise of the decanting power is not ineffective because of the failure to give notice to one or more persons under subsection (3) of this section if the authorized fiduciary acted with reasonable care to comply with subsection (3) of this section.
C.R.S. § 15-16-908 Representation
15-16-908. Representation. (1) Notice to a person with authority to represent and bind another person under a first-trust instrument or this part 9 has the same effect as notice given directly to the person represented.
(2) Consent of or waiver by a person with authority to represent and bind another person under a first-trust instrument or this part 9 is binding on the person represented unless the person represented objects to the representation before the consent or waiver otherwise would become effective.
(3) A person with authority to represent and bind another person under a first-trust instrument or this part 9 may file an application under section 15-16-909 on behalf of the person represented.
(4) A settlor may not represent or bind a beneficiary under this part 9.
(5) To the extent there is no conflict of interest between the holder of a general testamentary power of appointment and the persons represented with respect to an exercise of the decanting power, the holder may represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to the power.
(6) To the extent there is no conflict of interest between the representative and the person represented or among those being represented with respect to an exercise of the decanting power:
(a) A conservator may represent and bind the protected person's estate;
(b) A guardian may represent and bind the ward if a conservator of the ward's estate has not been appointed;
(c) An agent having authority to act with respect to the principal's beneficial interest in the trust may represent and bind the principal;
(d) The trustee of a trust that is a beneficiary of the first trust may represent and bind the beneficiaries of that trust, and the trustee of a trust that is a beneficiary of the second trust may represent and bind the beneficiaries of that trust;
(e) A personal representative of a decedent's estate may represent and bind interested persons with respect to the estate; and
(f) A parent may represent and bind the parent's minor or unborn child if a conservator or guardian for the child has not been appointed.
(7) Unless otherwise represented, a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown and not reasonably ascertainable, may be represented by and bound by another having a substantially identical interest with respect to an exercise of the decanting power, but only to the extent there is no conflict of interest between the representative and the person represented.
(8) If section 15-16-909 is invoked and the court determines that an interest is not represented under this part 9, or that the otherwise available representation might be inadequate, the court may appoint a representative to receive notice, give consent, and otherwise represent, bind, and act on behalf of a minor, incapacitated, or unborn individual, or a person whose identity or location is unknown. A representative may be appointed to represent several persons or interests.
(9) A representative may act on behalf of the individual represented with respect to an exercise of the decanting power regardless of whether a judicial proceeding concerning the exercise of the decanting power is pending.
(10) In making decisions, a representative may consider general benefit accruing to the living members of the represented individual's family.
(11) The authority to represent and bind another person under this section applies to the results of the exercise of the decanting power under this part 9, including but not limited to trust division, modification, or reformation, regardless of any other law of the state.
C.R.S. § 15-16-909 Court involvement
15-16-909. Court involvement. (1) On application of an authorized fiduciary, a person entitled to notice under section 15-16-907 (3), a beneficiary, or with respect to a charitable interest the attorney general or other person that has standing to enforce the charitable interest, the court may:
(a) Provide instructions to the authorized fiduciary regarding whether a proposed exercise of the decanting power is permitted under this part 9 and consistent with the fiduciary duties of the authorized fiduciary;
(b) Appoint a special fiduciary and authorize the special fiduciary to determine whether the decanting power should be exercised under this part 9 and to exercise the decanting power;
(c) Approve an exercise of the decanting power;
(d) Determine that a proposed or attempted exercise of the decanting power is ineffective because:
(I) After applying section 15-16-922, the proposed or attempted exercise does not or did not comply with this part 9; or
(II) The proposed or attempted exercise would be or was an abuse of the fiduciary's discretion or a breach of fiduciary duty;
(e) Determine the extent to which section 15-16-922 applies to a prior exercise of the decanting power;
(f) Provide instructions to the trustee regarding the application of section 15-16-922 to a prior exercise of the decanting power; or
(g) Order other relief to carry out the purposes of this part 9.
(2) On application of an authorized fiduciary, the court may approve:
(a) An increase in the fiduciary's compensation under section 15-16-916; or
(b) A modification under section 15-16-918 of a provision granting a person the right to remove or replace the fiduciary.
C.R.S. § 15-16-910 Formalities
15-16-910. Formalities. An exercise of the decanting power must be made in a record signed by an authorized fiduciary. The signed record must, directly or by reference to the notice required by section 15-16-907, identify the first trust and the second trust or trusts and state the property of the first trust being distributed to each second trust and the property, if any, that remains in the first trust.
C.R.S. § 15-16-911 Decanting power under expanded distributive discretion - definitions
15-16-911. Decanting power under expanded distributive discretion - definitions. (1) As used in this section, unless the context otherwise requires:
(a) "Noncontingent right" means a right that is not subject to the exercise of discretion or the occurrence of a specified event that is not certain to occur. The term does not include a right held by a beneficiary if any person has discretion to distribute property subject to the right to any person other than the beneficiary or the beneficiary's estate.
(b) "Presumptive remainder beneficiary" means a qualified beneficiary other than a current beneficiary.
(c) "Successor beneficiary" means a beneficiary that is not a qualified beneficiary on the date the beneficiary's qualification is determined. The term does not include a person that is a beneficiary only because the person holds a nongeneral power of appointment.
(d) "Vested interest" means:
(I) A right to a mandatory distribution that is a noncontingent right as of the date of the exercise of the decanting power;
(II) A current and noncontingent right, annually or more frequently, to a mandatory distribution of income, a specified dollar amount, or a percentage of value of some or all of the trust property;
(III) A current and noncontingent right, annually or more frequently, to withdraw income, a specified dollar amount, or a percentage of value of some or all of the trust property;
(IV) A presently exercisable general power of appointment; or
(V) A right to receive an ascertainable part of the trust property on the trust's termination which is not subject to the exercise of discretion or to the occurrence of a specified event that is not certain to occur.
(2) Subject to subsection (3) of this section and section 15-16-914, an authorized fiduciary that has expanded distributive discretion over the principal of a first trust for the benefit of one or more current beneficiaries may exercise the decanting power over the principal of the first trust.
(3) Subject to section 15-16-913, in an exercise of the decanting power under this section, a second trust may not:
(a) Include as a current beneficiary a person that is not a current beneficiary of the first trust, except as otherwise provided in subsection (4) of this section;
(b) Include as a presumptive remainder beneficiary or successor beneficiary a person that is not a current beneficiary, presumptive remainder beneficiary, or successor beneficiary of the first trust, except as otherwise provided in subsection (4) of this section; or
(c) Reduce or eliminate a vested interest.
(4) Subject to section 15-16-914 and paragraph (c) of subsection (3) of this section, in an exercise of the decanting power under this section, a second trust may be a trust created or administered under the law of any jurisdiction and may:
(a) Retain a power of appointment granted in the first trust;
(b) Omit a power of appointment granted in the first trust, other than a presently exercisable general power of appointment;
(c) Create or modify a power of appointment if the powerholder is a current beneficiary of the first trust and the authorized fiduciary has expanded distributive discretion to distribute principal to the beneficiary; and
n a power of appointment granted in the first trust;
(b) Omit a power of appointment granted in the first trust, other than a presently exercisable general power of appointment;
(c) Create or modify a power of appointment if the powerholder is a current beneficiary of the first trust and the authorized fiduciary has expanded distributive discretion to distribute principal to the beneficiary; and
(d) Create or modify a power of appointment if the powerholder is a presumptive remainder beneficiary or successor beneficiary of the first trust, but the exercise of the power may take effect only after the powerholder becomes, or would have become if then living, a current beneficiary.
(5) A power of appointment described in paragraph (a), (b), (c), or (d) of subsection (4) of this section may be general or nongeneral. The class of permissible appointees in favor of which the power may be exercised may be broader than or different from the beneficiaries of the first trust.
(6) If an authorized fiduciary has expanded distributive discretion over part but not all of the principal of a first trust, the fiduciary may exercise the decanting power under this section over that part of the principal over which the authorized fiduciary has expanded distributive discretion.
C.R.S. § 15-16-912 Decanting power under limited distributive discretion - definitions
15-16-912. Decanting power under limited distributive discretion - definitions. (1) As used in this section, unless the context otherwise requires, "limited distributive discretion" means a discretionary power of distribution that is limited to an ascertainable standard or a reasonably definite standard.
(2) An authorized fiduciary that has limited distributive discretion over the principal of the first trust for benefit of one or more current beneficiaries may exercise the decanting power over the principal of the first trust.
(3) Under this section and subject to section 15-16-914, a second trust may be created or administered under the law of any jurisdiction. Under this section, the second trusts, in the aggregate, must grant each beneficiary of the first trust beneficial interests which are substantially similar to the beneficial interests of the beneficiary in the first trust.
(4) A power to make a distribution under a second trust for the benefit of a beneficiary who is an individual is substantially similar to a power under the first trust to make a distribution directly to the beneficiary. A distribution is for the benefit of a beneficiary if:
(a) The distribution is applied for the benefit of the beneficiary;
(b) The beneficiary is under a legal disability or the trustee reasonably believes the beneficiary is incapacitated, and the distribution is made as permitted under other law of this state; or
(c) The distribution is made as permitted under the terms of the first-trust instrument and the second-trust instrument for the benefit of the beneficiary.
(5) If an authorized fiduciary has limited distributive discretion over part but not all of the principal of a first trust, the fiduciary may exercise the decanting power under this section over that part of the principal over which the authorized fiduciary has limited distributive discretion.
C.R.S. § 15-16-913 Trust for beneficiary with disability - definitions
15-16-913. Trust for beneficiary with disability - definitions. (1) As used in this section, unless the context otherwise requires:
(a) "Beneficiary with a disability" means a beneficiary of a first trust who the special-needs fiduciary believes may qualify for governmental benefits based on disability, whether or not the beneficiary currently receives those benefits or is an individual who has been adjudicated an incapacitated person.
(b) "Governmental benefits" means financial aid or services from a state, federal, or other public agency.
(c) "Special-needs fiduciary" means, with respect to a trust that has a beneficiary with a disability:
(I) A trustee or other fiduciary, other than a settlor, that has discretion to distribute part or all of the principal of a first trust to one or more current beneficiaries;
(II) If no trustee or fiduciary has discretion under subparagraph (I) of this paragraph (c), a trustee or other fiduciary, other than a settlor, that has discretion to distribute part or all of the income of the first trust to one or more current beneficiaries; or
(III) If no trustee or fiduciary has discretion under subparagraph (I) or (II) of this paragraph (c), a trustee or other fiduciary, other than a settlor, that is required to distribute part or all of the income or principal of the first trust to one or more current beneficiaries.
(d) "Special-needs trust" means a trust the trustee believes would not be considered a resource for purposes of determining whether a beneficiary with a disability is eligible for governmental benefits.
(2) A special-needs fiduciary may exercise the decanting power described in section 15-16-911 over the principal of a first trust as if the fiduciary had authority to distribute principal to a beneficiary with a disability subject to expanded distributive discretion if:
(a) A second trust is a special-needs trust that benefits the beneficiary with a disability; and
(b) The special-needs fiduciary determines that exercise of the decanting power will further the purposes of the first trust.
(3) In an exercise of the decanting power under this section, the following rules apply:
(a) Notwithstanding section 15-16-911 (3)(b), the interest in the second trust of a beneficiary with a disability may:
(I) Be a pooled trust as defined by medicaid law for the benefit of the beneficiary with a disability under 42 U.S.C. sec. 1396p (d)(4)(C), as amended; or
(II) Contain payback provisions complying with reimbursement requirements of medicaid law under 42 U.S.C. sec. 1396p (d)(4)(A), as amended.
(b) Section 15-16-911 (3)(c) does not apply to the interests of the beneficiary with a disability.
(c) Except as affected by any change to the interests of the beneficiary with a disability, the second trust, or if there are two or more second trusts, the second trusts in the aggregate, must grant each other beneficiary of the first trust beneficial interests in the second trusts which are substantially similar to the beneficiary's beneficial interests in the first trust.
C.R.S. § 15-16-914 Protection of charitable interest - definitions
15-16-914. Protection of charitable interest - definitions. (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.
C.R.S. § 15-16-915 Trust limitation on decanting
15-16-915. Trust limitation on decanting. (1) An authorized fiduciary may not exercise the decanting power to the extent the first-trust instrument expressly prohibits exercise of:
(a) The decanting power; or
(b) A power granted by state law to the fiduciary to distribute part or all of the principal of the trust to another trust or to modify the trust.
(2) Exercise of the decanting power is subject to any restriction in the first-trust instrument that expressly applies to exercise of:
(a) The decanting power; or
(b) A power granted by state law to a fiduciary to distribute part or all of the principal of the trust to another trust or to modify the trust.
(3) A general prohibition of the amendment or revocation of a first trust, a spendthrift clause, or a clause restraining the voluntary or involuntary transfer of a beneficiary's interest does not preclude exercise of the decanting power.
(4) Subject to subsections (1) and (2) of this section, an authorized fiduciary may exercise the decanting power under this part 9 even if the first-trust instrument permits the authorized fiduciary or another person to modify the first-trust instrument or to distribute part or all of the principal of the first trust to another trust.
(5) If a first-trust instrument contains an express prohibition described in subsection (1) of this section or an express restriction described in subsection (2) of this section, the provision must be included in the second-trust instrument.
C.R.S. § 15-16-916 Change in compensation
15-16-916. Change in compensation. (1) If a first-trust instrument specifies an authorized fiduciary's compensation, the fiduciary may not exercise the decanting power to increase the fiduciary's compensation above the specified compensation unless:
(a) All qualified beneficiaries of the second trust consent to the increase in a signed record; or
(b) The increase is approved by the court.
(2) If a first-trust instrument does not specify an authorized fiduciary's compensation, the fiduciary may not exercise the decanting power to increase the fiduciary's compensation above the compensation permitted by the laws of this state unless:
(a) All qualified beneficiaries of the second trust consent to the increase in a signed record; or
(b) The increase is approved by the court.
(3) A change in an authorized fiduciary's compensation which is incidental to other changes made by the exercise of the decanting power is not an increase in the fiduciary's compensation for purposes of subsections (1) and (2) of this section.
C.R.S. § 15-16-917 Relief from liability and indemnification
15-16-917. Relief from liability and indemnification. (1) Except as otherwise provided in this section, a second-trust instrument may not relieve an authorized fiduciary from liability for breach of trust to a greater extent than the first-trust instrument.
(2) A second-trust instrument may provide for indemnification of an authorized fiduciary of the first trust or another person acting in a fiduciary capacity under the first trust for any liability or claim that would have been payable from the first trust if the decanting power had not been exercised.
(3) A second-trust instrument may not reduce fiduciary liability in the aggregate.
(4) Subject to subsection (3) of this section, a second-trust instrument may divide and reallocate fiduciary powers among fiduciaries, including one or more trustees, distribution advisors, investment advisors, trust protectors, or other persons, and relieve a fiduciary from liability for an act or failure to act of another fiduciary as permitted by law of this state other than this part 9.
C.R.S. § 15-16-918 Removal or replacement of authorized fiduciary
15-16-918. Removal or replacement of authorized fiduciary. (1) An authorized fiduciary may not exercise the decanting power to modify a provision in a first-trust instrument granting another person power to remove or replace the fiduciary unless:
(a) The person holding the power consents to the modification in a signed record and the modification applies only to the person;
(b) The person holding the power and the qualified beneficiaries of the second trust consent to the modification in a signed record and the modification grants a substantially similar power to another person; or
(c) The court approves the modification and the modification grants a substantially similar power to another person.
C.R.S. § 15-16-919 Tax-related limitations - definitions
15-16-919. Tax-related limitations - definitions. (1) As used in this section, unless the context otherwise requires:
(a) "Grantor trust" means a trust as to which a settlor of a first trust is considered the owner under 26 U.S.C. secs. 671-677, as amended, or 26 U.S.C. sec. 679, as amended.
(b) "Internal revenue code" means the federal "Internal Revenue Code of 1986", as amended.
(c) "Nongrantor trust" means a trust that is not a grantor trust.
(d) "Qualified benefits property" means property subject to the minimum distribution requirements of 26 U.S.C. sec. 401 (a)(9), as amended, and any applicable regulations, or to any similar requirements that refer to 26 U.S.C. sec. 401 (a)(9) or the regulations.
(2) An exercise of the decanting power is subject to the following limitations:
(a) If a first trust contains property that qualified, or would have qualified but for provisions of this part 9 other than this section, for a marital deduction for purposes of the gift or estate tax under the internal revenue code or a state gift, estate, or inheritance tax, the second-trust instrument must not include or omit any term that, if included in or omitted from the trust instrument for the trust to which the property was transferred, would have prevented the transfer from qualifying for the deduction, or would have reduced the amount of the deduction, under the same provisions of the internal revenue code or state law under which the transfer qualified.
(b) If the first trust contains property that qualified, or would have qualified but for provisions of this part 9 other than this section, for a charitable deduction for purposes of the income, gift, or estate tax under the internal revenue code or a state income, gift, estate, or inheritance tax, the second-trust instrument must not include or omit any term that, if included in or omitted from the trust instrument for the trust to which the property was transferred, would have prevented the transfer from qualifying for the deduction, or would have reduced the amount of the deduction, under the same provisions of the internal revenue code or state law under which the transfer qualified.
(c) If the first trust contains property that qualified, or would have qualified but for provisions of this part 9 other than this section, for the exclusion from the gift tax described in 26 U.S.C. sec. 2503 (b), as amended, the second-trust instrument must not include or omit a term that, if included in or omitted from the trust instrument for the trust to which the property was transferred, would have prevented the transfer from qualifying under 26 U.S.C. sec. 2503 (b), as amended. If the first trust contains property that qualified, or would have qualified but for provisions of this part 9 other than this section, for the exclusion from the gift tax described in 26 U.S.C. sec. 2503 (b), as amended, by application of 26 U.S.C. sec. 2503 (c), as amended, the second-trust instrument must not include or omit a term that, if included or omitted from the trust instrument for the trust to which the property was transferred, would have prevented the transfer from qualifying under 26 U.S.C. sec. 2503 (c), as amended.
or the exclusion from the gift tax described in 26 U.S.C. sec. 2503 (b), as amended, by application of 26 U.S.C. sec. 2503 (c), as amended, the second-trust instrument must not include or omit a term that, if included or omitted from the trust instrument for the trust to which the property was transferred, would have prevented the transfer from qualifying under 26 U.S.C. sec. 2503 (c), as amended.
(d) If the property of the first trust includes shares of stock in an S corporation, as defined in 26 U.S.C. sec. 1361, as amended, and the first trust is, or but for provisions of this part 9 other than this section would be, a permitted shareholder under any provision of 26 U.S.C. sec. 1361, as amended, an authorized fiduciary may exercise the power with respect to part or all of the S corporation stock only if any second trust receiving the stock is a permitted shareholder under 26 U.S.C. sec. 1361 (c)(2), as amended. If the property of the first trust includes shares of stock in an S corporation and the first trust is, or but for provisions of this part 9 other than this section would be, a qualified subchapter S trust within the meaning of 26 U.S.C. sec. 1361 (d), as amended, the second-trust instrument must not include or omit a term that prevents the second trust from qualifying as a qualified subchapter S trust.
(e) If the first trust contains property that qualified, or would have qualified but for provisions of this part 9 other than this section, for a zero inclusion ratio for purposes of the generation-skipping transfer tax under 26 U.S.C. sec. 2642 (c), as amended, the second-trust instrument must not include or omit a term that, if included in or omitted from the first-trust instrument, would have prevented the transfer to the first trust from qualifying for a zero inclusion ratio under 26 U.S.C. sec. 2642 (c), as amended.
(f) If the first trust is directly or indirectly the beneficiary of qualified benefits property, the second-trust instrument may not include or omit any term that, if included in or omitted from the first-trust instrument, would have increased the minimum distributions required with respect to the qualified benefits property under 26 U.S.C. sec. 401 (a)(9), as amended, and any applicable regulations, or any similar requirements that refer to 26 U.S.C. sec. 401 (a)(9), as amended or the regulations. If an attempted exercise of the decanting power violates the preceding sentence, the trustee is deemed to have held the qualified benefits property and any reinvested distributions of the property as a separate share from the date of the exercise of the power, and section 15-16-922 applies to the separate share.
(g) If the first trust qualifies as a grantor trust because of the application of 26 U.S.C. sec. 672 (f)(2)(A), as amended, the second trust may not include or omit a term that, if included in or omitted from the first-trust instrument, would have prevented the first trust from qualifying under 26 U.S.C. sec. 672 (f)(2)(A), as amended.
(h) As used in this paragraph (h), unless the context requires otherwise, "tax benefit" means a federal or state tax deduction, exemption, exclusion, or other benefit not otherwise listed in this section, except for a benefit arising from being a grantor trust. Subject to paragraph (i) of this subsection (2), a second-trust instrument may not include or omit a term that, if included in or omitted from the first-trust instrument, would have prevented qualification for a tax benefit if:
(I) The first-trust instrument expressly indicates an intent to qualify for the benefit or the first-trust instrument clearly is designed to enable the first trust to qualify for the benefit; and
(II) The transfer of property held by the first trust or the first trust qualified, or but for provisions of this part 9 other than this section, would have qualified for the tax benefit.
ax benefit if:
(I) The first-trust instrument expressly indicates an intent to qualify for the benefit or the first-trust instrument clearly is designed to enable the first trust to qualify for the benefit; and
(II) The transfer of property held by the first trust or the first trust qualified, or but for provisions of this part 9 other than this section, would have qualified for the tax benefit.
(i) Subject to paragraph (d) of this subsection (2):
(I) Except as otherwise provided in paragraph (g) of this subsection (2), the second trust may be a nongrantor trust, even if the first trust is a grantor trust; and
(II) Except as otherwise provided in paragraph (j) of this subsection (2), the second trust may be a grantor trust, even if the first trust is a nongrantor trust.
(j) An authorized fiduciary may not exercise the decanting power if a settlor objects in a signed record delivered to the fiduciary within the notice period and:
(I) The first trust and a second trust are both grantor trusts, in whole or in part, the first trust grants the settlor or another person the power to cause the first trust to cease to be a grantor trust, and the second trust does not grant an equivalent power to the settlor or other person; or
(II) The first trust is a nongrantor trust and a second trust is a grantor trust, in whole or in part, with respect to the settlor, unless:
(A) The settlor has the power at all times to cause the second trust to cease to be a grantor trust; or
(B) The first-trust instrument contains a provision granting the settlor or another person a power that would cause the first trust to cease to be a grantor trust and the second-trust instrument contains the same provision.
C.R.S. § 15-16-920 Duration of second trust
15-16-920. Duration of second trust. (1) Subject to subsection (2) of this section, a second trust may have a duration that is the same as or different from the duration of the first trust.
(2) To the extent that property of a second trust is attributable to property of the first trust, the property of the second trust is subject to any rules governing maximum perpetuity, accumulation, or suspension of the power of alienation which apply to property of the first trust.
C.R.S. § 15-16-921 Need to distribute not required
15-16-921. Need to distribute not required. An authorized fiduciary may exercise the decanting power regardless of whether under the first trust's discretionary distribution standard the fiduciary would have made or could have been compelled to make a discretionary distribution of principal at the time of the exercise.
C.R.S. § 15-16-922 Saving provision
15-16-922. Saving provision. (1) If exercise of the decanting power would be effective under this part 9 except that the second-trust instrument in part does not comply with this part 9, the exercise of the power is effective and the following rules apply with respect to the principal of the second trust attributable to the exercise of the power:
(a) A provision in the second-trust instrument which is not permitted under this part 9 is void to the extent necessary to comply with this part 9.
(b) A provision required by this part 9 to be in the second-trust instrument which is not contained in the instrument is deemed to be included in the instrument to the extent necessary to comply with this part 9.
(2) If a trustee or other fiduciary of a second trust determines that subsection (1) of this section applies to a prior exercise of the decanting power, the fiduciary shall take corrective action consistent with the fiduciary's duties.
C.R.S. § 15-16-923 Trust for care of animal - definitions
15-16-923. Trust for care of animal - definitions. (1) As used in this section, unless the context otherwise requires:
(a) "Animal trust" means a trust or an interest in a trust created to provide for the care of one or more animals.
(b) "Protector" means a person listed under section 15-11-901 (3)(d) with authority to enforce the trust on behalf of the animal.
(2) The decanting power may be exercised over an animal trust that has a protector to the extent the trust could be decanted under this part 9 if each animal that benefits from the trust were an individual, if the protector consents in a signed record to the exercise of the power.
(3) A protector for an animal has the rights under this part 9 of a qualified beneficiary.
(4) Notwithstanding any other provision of this part 9, if a first trust is an animal trust, in an exercise of the decanting power, the second trust must provide that trust property may be applied only to its intended purpose for the period the first trust benefitted the animal.
C.R.S. § 15-16-924 Terms of second trust
15-16-924. Terms of second trust. A reference in this title 15 to a trust instrument or terms of the trust includes a second-trust instrument and the terms of the second trust.
C.R.S. § 15-16-925 Settlor
15-16-925. Settlor. (1) For purposes of law of this state other than this part 9, and subject to subsection (2) of this section, a settlor of a first trust is deemed to be the settlor of the second trust with respect to the portion of the principal of the first trust subject to the exercise of the decanting power.
(2) In determining settlor intent with respect to a second trust, the intent of a settlor of the first trust, a settlor of the second trust, and the authorized fiduciary may be considered.
C.R.S. § 15-16-926 Later-discovered property
15-16-926. Later-discovered property. (1) Except as otherwise provided in subsection (3) of this section, if exercise of the decanting power was intended to distribute all the principal of the first trust to one or more second trusts, later-discovered property belonging to the first trust and property paid to or acquired by the first trust after the exercise of the power is part of the trust estate of the second trust or trusts.
(2) Except as otherwise provided in subsection (3) of this section, if exercise of the decanting power was intended to distribute less than all the principal of the first trust to one or more second trusts, later-discovered property belonging to the first trust or property paid to or acquired by the first trust after exercise of the power remains part of the trust estate of the first trust.
(3) An authorized fiduciary may provide in an exercise of the decanting power or by the terms of a second trust for disposition of later-discovered property belonging to the first trust or property paid to or acquired by the first trust after exercise of the power.
C.R.S. § 15-16-927 Obligations
15-16-927. Obligations. A debt, liability, or other obligation enforceable against property of a first trust is enforceable to the same extent against the property when held by the second trust after exercise of the decanting power.
C.R.S. § 15-16-928 Uniformity of application and construction
15-16-928. Uniformity of application and construction. In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
C.R.S. § 15-16-929 Relation to electronic signatures in global and national commerce act
15-16-929. Relation to electronic signatures in global and national commerce act. This part 9 modifies, limits, or supersedes the "Electronic Signatures in Global and National Commerce Act", 15 U.S.C. sec. 7001 et seq., but does not modify, limit, or supersede section 101 (c) of that act, 15 U.S.C. sec. 7001 (c), or authorize electronic delivery of any of the notices described in section 103 (b) of that act, 15 U.S.C. sec. 7003 (b).
C.R.S. § 15-16-930 Severability
15-16-930. Severability. If any provision of this part 9 or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this part 9 which can be given effect without the invalid provision or application, and to this end the provisions of this part 9 are severable.
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