C.R.S. Section 15-1.2-403
Business of other activity conducted by fiduciary

(1)

This section applies to a business or other activity conducted by a fiduciary if the fiduciary determines that it is in the interests of the beneficiaries to account separately for the business or other activity instead of:

(a)

Accounting for the business or other activity as part of the fiduciary’s general accounting records; or

(b)

Conducting the business or other activity through an entity described in section 15-1.2-401 (1)(b)(I).

(2)

A fiduciary may account separately under this section for the transactions of a business or other activity, whether or not assets of the business or other activity are segregated from other assets held by the fiduciary.

(3)

A fiduciary that accounts separately under this section for a business or other activity:

(a)

May determine:

(I)

The extent to which the net cash receipts of the business or other activity must be retained for:

(A)

Working capital;

(B)

The acquisition or replacement of fixed assets; and

(C)

Other reasonably foreseeable needs of the business or other activity; and

(II)

The extent to which the remaining net cash receipts are accounted for as principal or income in the fiduciary’s general accounting records for the trust;

(b)

May make a determination under subsection (3)(a) of this section separately and differently from the fiduciary’s decisions concerning distributions of income or principal; and

(c)

Shall account for the net amount received from the sale of an asset of the business or other activity, other than a sale in the ordinary course of the business or other activity, as principal in the fiduciary’s general accounting records for the trust, to the extent the fiduciary determines that the net amount received is no longer required in the conduct of the business or other activity.

(4)

Activities for which a fiduciary may account separately under this section include:

(a)

Retail, manufacturing, service, and other traditional business activities;

(b)

Farming;

(c)

Raising and selling livestock and other animals;

(d)

Managing rental properties;

(e)

Extracting minerals, water, and other natural resources;

(f)

Growing and cutting timber;

(g)

An activity to which section 15-1.2-414, 15-1.2-415, or 15-1.2-416 applies; and

(h)

Any other business conducted by the fiduciary.

Source: Section 15-1.2-403 — Business of other activity conducted by fiduciary, 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

§ 15-1.2-403’s source at colorado​.gov