C.R.S. Section 15-5-816
Specific powers of trustee


(1)

Without limiting the authority conferred by section 15-5-815, and in addition to the powers conferred pursuant to the “Colorado Fiduciaries’ Powers Act”, part 8 of article 1 of this title 15, a trustee may:

(a)

Collect trust property and accept or reject additions to the trust property from a settlor or any other person;

(b)

Acquire or sell property, for cash or on credit, at public or private sale;

(c)

Exchange, partition, or otherwise change the character of trust property;

(d)

Deposit trust money in an account in a regulated financial service institution;

(e)

Borrow money, with or without security, and mortgage or pledge trust property for a period within or extending beyond the duration of the trust;

(f)

With respect to an interest in a proprietorship, partnership, limited liability company, business trust, corporation, or other form of business or enterprise, continue the business or other enterprise and take any action that may be taken by shareholders, members, or property owners, including merging, dissolving, or otherwise changing the form of business organization or contributing additional capital;

(g)

With respect to stocks or other securities, exercise the rights of an absolute power, including the right to:

(I)

Vote or give proxies to vote, with or without power of substitution, or enter into or continue a voting trust agreement;

(II)

Hold a security in the name of a nominee or in other form without disclosure of the trust so that title may pass by delivery;

(III)

Pay calls, assessments, and other sums chargeable or accruing against the securities, and sell or exercise stock subscription or conversion rights; and

(IV)

Deposit the securities with a depositary or other regulated financial service institution;

(h)

With respect to an interest in real property, construct, or make ordinary or extraordinary repairs to, alterations to, or improvements in, buildings or other structures; demolish improvements; raze existing or erect new party walls or buildings; subdivide or develop land; dedicate land to public use or grant public or private easements; and make or vacate plats and adjust boundaries;

(i)

Enter into a lease for any purpose as lessor or lessee, including a lease or other arrangement for exploration and removal of natural resources, with or without the option to purchase or renew, for a period within or extending beyond the duration of the trust;

(j)

Grant an option involving a sale, lease, or other disposition of trust property or acquire an option for the acquisition of property, including an option exercisable beyond the duration of the trust, and exercise an option so acquired;

(k)

Insure the property of the trust against damage or loss and insure the trustee, the trustee’s agents, and beneficiaries against liability arising from the administration of the trust;

(l)

Abandon or decline to administer property of no value or insufficient value to justify its collection or continued administration;

(m)

With respect to possible liability for violation of environmental law:

(I)

Inspect or investigate property the trustee holds or has been asked to hold, or property owned or operated by an organization in which the trustee holds or has been asked to hold an interest, for the purpose of determining the application of environmental law with respect to the property;

(II)

Take action to prevent, abate, or otherwise remedy any actual or potential violation of any environmental law affecting property held directly or indirectly by the trustee, whether taken before or after the assertion of a claim or the initiation of government enforcement;

(III)

Decline to accept property into trust or disclaim any power with respect to property that is or may be burdened with liability for violation of environmental law;

(IV)

Compromise claims against the trust that may be asserted for an alleged violation of environmental law; and

(V)

Pay the expense of any inspection, review, abatement, or remedial action to comply with environmental law;

(n)

Pay or contest any claim, settle a claim by or against the trust, and release, in whole in or in part, a claim belonging to the trust;

(o)

Pay taxes, assessments, compensation of the trustee and of employees and agents of the trust, and other expenses incurred in the administration of the trust;

(p)

Exercise elections with respect to federal, state, and local taxes;

(q)

Select a mode of payment under any employee benefit or retirement plan, annuity, or life insurance payable to the trustee, exercise rights thereunder, including exercise of the right to indemnification for expenses and against liabilities, and take appropriate action to collect the proceeds;
(r)(Reserved)(s)(Reserved)(t) Appoint a trustee to act in another jurisdiction with respect to trust property located in the other jurisdiction, confer upon the appointed trustee all of the powers and duties of the appointing trustee, require that the appointed trustee furnish security, and remove any trustee so appointed;

(u)

Pay an amount distributable to a beneficiary by paying it directly to the beneficiary or applying it for the beneficiary’s benefit and, in the case of a beneficiary who is under a legal disability or who the trustee reasonably believes is incapacitated, by paying it directly to the beneficiary or applying it for the beneficiary’s benefit or by:

(I)

Paying it to the beneficiary’s conservator or, if the beneficiary does not have a conservator, the beneficiary’s guardian;

(II)

Paying it to the beneficiary’s custodian pursuant to the “Colorado Uniform Transfers to Minors Act”, article 50 of title 11, or custodial trustee pursuant to the “Colorado Uniform Custodial Trust Act”, article 1.5 of this title 15, and for that purpose, creating a custodianship of custodial trust;

(III)

If the trustee does not know of a conservator, guardian, custodian, or custodial trustee, paying it to an adult relative or other person having legal or physical care or custody of the beneficiary, to be expended on the beneficiary’s behalf; or

(IV)

Managing it as a separate fund on the beneficiary’s behalf, subject to the beneficiary’s continuing right to withdraw the distribution;
(v)
On distribution of trust property or the division or termination of a trust, make distributions in divided or undivided interests, allocate particular assets in proportionate or disproportionate shares, value the trust property for those purposes, and adjust for resulting differences in valuation;

(w)

Resolve a dispute concerning the interpretation of the trust or its administration by mediation, arbitration, or other procedure for alternate dispute resolution;
(x)
Prosecute or defend an action, claim, or judicial proceeding in any jurisdiction to protect trust property and the trustee in the performance of the trustee’s duties;

(y)

Sign and deliver contracts and other instruments that are useful to achieve or facilitate the exercise of the trustee’s powers; and

(z)

On termination of the trust, exercise the powers appropriate to wind up the administration of the trust and distribute the trust property to the persons entitled to it.

Source: Section 15-5-816 — Specific powers of trustee, https://leg.­colorado.­gov/sites/default/files/images/olls/crs2023-title-15.­pdf (accessed Oct. 20, 2023).

15–5–101
Short title
15–5–102
Scope
15–5–103
Definitions
15–5–104
Knowledge
15–5–105
Default and mandatory rules
15–5–106
Common law of trusts - principles of equity - other statutes
15–5–107
Governing law
15–5–108
Principal place of administration
15–5–109
Methods and waiver of notice in matters other than judicial proceedings
15–5–110
Others treated as qualified beneficiaries
15–5–111
Nonjudicial settlement agreements
15–5–112
Rules of construction
15–5–113
Alternate dispute resolution
15–5–114
Insurable interest of trustee - definition
15–5–201
Role of court in administration of trust
15–5–202
Jurisdiction over trustee and beneficiary
15–5–203
Subject matter jurisdiction
15–5–204
Venue
15–5–205
Registration of trusts
15–5–206
Registration procedures and content of statement
15–5–207
Effect of failure to register
15–5–208
Registration - qualification of a foreign trustee
15–5–209
Release of trust registration statement
15–5–210
Judicially approved settlements
15–5–301
Representation - basic effect
15–5–301.5
Scope of representative’s authority and duty of certain representatives - definitions
15–5–302
Representation by a holder of general testamentary power of appointment
15–5–303
Representation by fiduciaries and parents
15–5–304
Representation by person having substantially identical interest
15–5–305
Appointment of representative
15–5–401
Methods of creating trust
15–5–402
Requirements for creation
15–5–403
Trusts created in other jurisdictions
15–5–404
Trust purposes
15–5–405
Charitable purposes - enforcement
15–5–406
Creation of trust induced by fraud, duress, or undue influence
15–5–407
Evidence of oral trust
15–5–408
Trust for care of an animal
15–5–409
Noncharitable trust without ascertainable beneficiary
15–5–409.5
Additional provisions applicable to noncharitable trusts without ascertainable beneficiary and trusts for care of animal
15–5–410
Modification or termination of trust - proceedings for approval or disapproval
15–5–411
Modification or termination of noncharitable irrevocable trust by consent
15–5–412
Modification or termination because of unanticipated circumstances or inability to administer trust effectively
15–5–413
Cy pres
15–5–414
Modification or termination of uneconomic trust
15–5–415
Reformation to correct mistakes
15–5–416
Modification to achieve settlor’s tax objectives
15–5–417
Combination and division of trusts
15–5–501
Rights of beneficiary’s creditor or assignee
15–5–502
Spendthrift provision
15–5–503
Exceptions to spendthrift provision - definitions
15–5–504
Discretionary trusts - effect of standard - definitions
15–5–505
Creditor’s claim against a settlor
15–5–506
Overdue distribution - definition
15–5–507
Personal obligations of trustee
15–5–508
Application of part
15–5–602
Revocation or amendment of revocable trust
15–5–603
Settlor’s powers
15–5–604
Limitation on action contesting validity of revocable trust
15–5–701
Accepting or declining trusteeship
15–5–702
Trustee’s bond
15–5–703
Cotrustees
15–5–704
Vacancy in trusteeship - appointment of successor
15–5–705
Resignation of trustee
15–5–706
Removal of trustee
15–5–707
Delivery of property by former trustee
15–5–708
Compensation of trustee
15–5–709
Reimbursement of expenses
15–5–801
Duty to administer trust
15–5–802
Duty of loyalty
15–5–803
Impartiality
15–5–804
Prudent administration
15–5–805
Costs of administration
15–5–806
Trustee’s skills
15–5–807
Delegation by trustee
15–5–808
Powers to direct
15–5–809
Control and protection of trust property
15–5–810
Record keeping and identification of trust property
15–5–811
Enforcement and defense of claims
15–5–812
Collecting trust property
15–5–813
Duty to inform and report
15–5–814
Discretionary powers - tax savings
15–5–815
General powers of trustee
15–5–816
Specific powers of trustee
15–5–817
Distribution on termination
15–5–818
Reimbursement for taxes - definitions
15–5–1001
Remedies for breach of trust
15–5–1002
Damages for breach of trust
15–5–1003
Damages in absence of breach
15–5–1004
Compensation and costs
15–5–1005
Limitation of actions against trustee
15–5–1006
Reliance on trust instrument
15–5–1007
Event affecting administration or distribution
15–5–1008
Exculpation of trustee
15–5–1009
Beneficiary’s consent, release, or ratification
15–5–1010
Limitation on personal liability of trustee
15–5–1011
Interest as a general partner
15–5–1012
Protection of person dealing with trustee
15–5–1013
Certification of trust
15–5–1301
Life insurance policy owned by a trustee - definition
15–5–1401
Uniformity of application and construction
15–5–1402
Electronic records and signatures
15–5–1403
Severability clause
15–5–1404
Application to existing relationships
Green check means up to date. Up to date

Current through Fall 2024

§ 15-5-816’s source at colorado​.gov