C.R.S. Section 15-1.2-309
Special tax benefits

  • rules

(1)

A unitrust policy may:

(a)

Provide methods and standards for:

(I)

Determining the timing of distributions;

(II)

Making distributions in cash or in kind or partly in cash and partly in kind; or

(III)

Correcting an underpayment or overpayment to a beneficiary based on the unitrust amount if there is an error in calculating the unitrust amount;

(b)

Specify sources and the order of sources, including categories of income for federal income tax purposes, from which distributions of a unitrust amount are paid; or

(c)

Provide other standards and rules the fiduciary determines serve the interests of the beneficiaries.

(2)

If a trust qualifies for a special tax benefit or a fiduciary is not an independent person:

(a)

The unitrust rate established under section 15-1.2-306 may not be less than three percent or more than five percent;

(b)

The only provisions of section 15-1.2-307 which apply are section 15-1.2-307 (1), (2)(a), (2)(d), (2)(e)(I), and (2)(i);

(c)

The only period that may be used under section 15-1.2-308 is a calendar year under section 15-1.2-308 (1)(a); and

(d)

The only other provisions of section 15-1.2-308 which apply are section 15-1.2-308 (2)(b)(I) and (2)(c).

(3)

Unless otherwise provided by the terms of unitrust policy or the terms of the trust, the distribution amount each year shall be deemed to be paid from the following sources for that year in the following order:

(a)

Net income determined as if the trust was not a unitrust;

(b)

Other ordinary income as determined for federal income tax purposes;

(c)

Net realized short-term capital gains as determined for federal income tax purposes;

(d)

Net realized long-term capital gains as determined for federal income tax purposes;

(e)

Trust principal comprising assets for which there is a readily available market value; and

(f)

Other trust principal.

Source: Section 15-1.2-309 — Special tax benefits - rules, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-15.­pdf (accessed Oct. 20, 2023).

15‑1.2‑101
Short title 15‑1.2‑102
Definitions 15‑1.2‑103
Scope 15‑1.2‑104
Governing law 15‑1.2‑201
Fiduciary duties - general principles 15‑1.2‑202
Judicial review of exercise of discretionary power - definition 15‑1.2‑203
Fiduciary’s power to adjust 15‑1.2‑204
Notice of action - definitions 15‑1.2‑301
Definitions 15‑1.2‑302
Application - duties and remedies 15‑1.2‑303
Authority of fiduciary 15‑1.2‑304
Notice 15‑1.2‑305
Unitrust policy 15‑1.2‑306
Unitrust rate 15‑1.2‑307
Applicable value 15‑1.2‑308
Period 15‑1.2‑309
Special tax benefits - rules 15‑1.2‑401
Character of receipts from entity - definitions 15‑1.2‑402
Distribution from trust or estate 15‑1.2‑403
Business of other activity conducted by fiduciary 15‑1.2‑404
Principal receipts 15‑1.2‑405
Rental property 15‑1.2‑406
Receipt on obligation to be paid in money 15‑1.2‑407
Insurance policy or contract 15‑1.2‑408
Insubstantial allocation not required 15‑1.2‑409
Deferred compensation, annuity, or similar payment - definitions 15‑1.2‑410
Liquidating asset - definition 15‑1.2‑411
Minerals, water, and other natural resources 15‑1.2‑412
Timber 15‑1.2‑413
Marital deduction property not productive of income 15‑1.2‑414
Derivative or option - definition 15‑1.2‑415
Asset-backed security 15‑1.2‑416
Other financial instrument or arrangement 15‑1.2‑501
Disbursement from income 15‑1.2‑502
Disbursement from principal 15‑1.2‑503
Transfer from income to principal for depreciation - definition 15‑1.2‑504
Reimbursement of income from principal 15‑1.2‑505
Reimbursement of principal from income 15‑1.2‑506
Income taxes 15‑1.2‑507
Adjustment between income and principal because of taxes 15‑1.2‑601
Determination and distribution of net income 15‑1.2‑602
Distribution to successor beneficiary 15‑1.2‑701
When right to income begins and ends 15‑1.2‑702
Apportionment of receipts and disbursements when decedent dies or income interest begins 15‑1.2‑703
Apportionment when income interest ends - definition 15‑1.2‑801
Uniformity of application and construction 15‑1.2‑802
Relation to electronic signatures in global and national commerce act 15‑1.2‑803
Application to trust or estate 15‑1.2‑804
Severability
Green check means up to date. Up to date

Current through Fall 2024

§ 15-1.2-309’s source at colorado​.gov