Colorado § 15-5-105 - Default and mandatory rules.

§ 15-5-105. Default and mandatory rules.

(1) Except as otherwise provided in the terms of the trust, this code governs the duties, rights, and powers of a trustee; relations among trustees; the rights, powers, and interests of a beneficiary; the relationship between the trustees and the beneficiaries; the purpose of the trust; and other matters with respect to the trust or the property subject to the trust.

(2) Subject to sections 15-16-809, 15-16-810, and 15-16-811, the terms of a trust prevail over any provision of this code except:

(a) The minimum requirements for creating the trust;

(b) The duty of a trustee to act in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries;

(c) The requirement that a trust and its terms be for the benefit of its beneficiaries and that the trust have a purpose that is lawful, not contrary to public policy, and possible to achieve;

(d) The power of the court to modify or terminate a trust pursuant to sections 15-5-410 to 15-5-416;

(e) The effect of a spendthrift provision and the rights of certain creditors and assignees to reach a trust as provided in part 5 of this article 5;

(f) The power of the court pursuant to section 15-5-702 to require, dispense with, modify, or terminate a bond;

(g) The power of the court pursuant to section 15-5-708 (2) to adjust a trustee's compensation specified in the terms of the trust that is unreasonably low or high;

(h) The duty pursuant to section 15-5-813 (2)(b) and (2)(c) to provide notice of the existence of an irrevocable trust, of the identity of the trustee, and of the right to request trustee's reports to current distributees or permissible distributees of such trust at any age, or to other qualified beneficiaries of such trust who have attained twenty-five years of age;

(i) The duty pursuant to section 15-5-813 (1) to respond to the request of a qualified beneficiary of an irrevocable trust for trustee's reports and other information reasonably related to the administration of a trust;

(j) The effect of an exculpatory term pursuant to section 15-5-1008;

(k) The rights pursuant to sections 15-5-1010 to 15-5-1013 of a person other than a trustee or beneficiary;

(l) The periods of limitation for commencing a judicial proceeding;

(m) Consistent with the terms of the trust and the provisions of this code, the power of the court to take such action and exercise such jurisdiction not inconsistent with a settlor's intent as may be necessary in the interests of justice; and

(n) The subject matter jurisdiction of the court and venue for commencing a proceeding as provided in sections 15-5-203 and 15-5-204, unless the trust instrument requires alternative dispute resolution.

Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1147, § 1, effective January 1, 2019. L. 2019: IP(2) amended, (SB 19-105), ch. 51, p. 173, § 2, effective August 2. L. 2021: (2)(e) added, (SB 21-162), ch. 170, p. 944, § 2, effective September 7.