2020 Colorado Revised Statutes
Title 15 - Probate, Trusts, And Fiduciaries
Article 1. Fiduciary
Section 15-1-403. Fiduciary duties - general principles.
(1) In allocating receipts and disbursements to or between principal and income, and with respect to any matter within the scope of subparts 2 and 3 of this part 4, a fiduciary:
Shall administer a trust or estate in accordance with the terms of the trust or the will,even if there is a different provision in subparts 1 through 6 of this part 4;
May administer a trust or estate by the exercise of a discretionary power of administration given to the fiduciary by the terms of the trust or the will, even if the exercise of the power produces a result different from a result required or permitted by subparts 1 through 6 of this part 4;
Shall administer a trust or estate in accordance with subparts 1 through 6 of this part4 if the terms of the trust or the will do not contain a different provision or do not give the fiduciary a discretionary power of administration; and
Shall add a receipt or charge a disbursement to principal to the extent that the termsof the trust and subparts 1 through 6 of this part 4 do not provide a rule for allocating the receipt or disbursement to or between principal and income.
In exercising the power to adjust under section 15-1-404 (1) or a discretionary powerof administration regarding a matter within the scope of subparts 1 through 6 of this part 4, whether granted by the terms of a trust, a will, or subparts 1 through 6 of this part 4, a fiduciary shall administer a trust or estate impartially, based on what is fair and reasonable to all of the beneficiaries, except to the extent that the terms of the trust or the will clearly manifest an intention that the fiduciary shall or may favor one or more of the beneficiaries. A determination in accordance with subparts 1 through 6 of this part 4 is presumed to be fair and reasonable to all of the beneficiaries.
The terms and conditions of a trust or a will shall govern all actions taken by afiduciary with respect to any matter within the scope of subparts 1 through 6 of this part 4. The provisions of subparts 1 through 6 of this part 4 are default provisions and may be expanded, restricted, eliminated, or otherwise altered by the provisions of a trust or a will. The provisions of subparts 1 through 6 of this part 4 shall govern the administration of a trust or will by a fiduciary only if such trust or will contains no conflicting provision.
Nothing in subparts 1 through 6 of this part 4 shall be construed to limit or restrict amaker of a trust or will from making provisions in such trust or will that are different from the provisions in subparts 1 through 6 of this part 4.
Source: L. 2000: Entire part R&RE, p. 1129, § 1, effective July 1, 2001. L. 2009: Entire section amended, (HB 09-1241), ch. 169, p. 742, § 2, effective April 22.
