Serving with a co-trustee in Colorado

How cotrustees decide

C.R.S. §15-5-703(1) provides that cotrustees who are unable to reach a unanimous decision may act by majority decision. Each cotrustee participates in the trustee's functions unless unavailable because of absence, illness, disqualification or other temporary incapacity, or the function was properly delegated to another trustee (§15-5-703(3)).

A trustee may not delegate to a cotrustee a function the settlor reasonably expected the trustees to perform jointly, and may revoke a delegation that was not irrevocable (C.R.S. §15-5-703(5)).

Dissent and responsibility

A trustee who does not join in another trustee's action is not liable for it (C.R.S. §15-5-703(6)), but each trustee exercises reasonable care to prevent a cotrustee from committing a serious breach of trust and to pursue a remedy for one (§15-5-703(7)). A dissenting trustee who joins at the majority's direction after notifying the cotrustees of the dissent is not liable for the action unless it is a serious breach (§15-5-703(8)).

Many cotrustees record each decision with the names of those who agreed and any written dissent.

When one cotrustee leaves

If a vacancy occurs in a cotrusteeship, the remaining cotrustees may act for the trust (C.R.S. §15-5-703(2)), and a vacancy need not be filled while one or more cotrustees remain in office (§15-5-704(2)). Where no trustee remains, a vacancy is filled by the successor the terms designate, then by a person the qualified beneficiaries unanimously agree on, then by the court (§15-5-704(3)).

Cotrustees and institutions; directed trusts

A certification of trust states the authority of cotrustees to sign or otherwise authenticate and whether all or fewer than all are required to exercise the trustee's powers (C.R.S. §15-5-1013(1)(f)), which is how a bank learns whether one signature is enough.

A directed trust is different from a cotrusteeship: there, a trust director holds a power of direction and the directed trustee follows it, without liability except for willful misconduct (C.R.S. §15-16-809). Participation by cotrustees is subject to the directed-trust rules where they apply (§15-5-703(3)).

The statutes, verbatim

• Duty and liability of directed trustee

  C.R.S. §15-16-809 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Certification of trust

  C.R.S. §15-5-1013 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Cotrustees

  C.R.S. §15-5-703 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

• Vacancy in trusteeship - appointment of successor

  C.R.S. §15-5-704 ↗

  Clear, simple explanation; the verbatim statute text is not yet attested in our library. See the official statute via the link above.

Common questions

Frequently asked questions

Do Colorado co-trustees have to agree on everything?

No. Cotrustees who cannot reach a unanimous decision may act by majority (C.R.S. §15-5-703(1)), unless the trust's terms provide otherwise.

Is a Colorado cotrustee liable for a decision they opposed?

A trustee who does not join an action is not liable for it, and one who joins at the majority's direction after notifying the others of the dissent is not liable unless the action is a serious breach of trust (C.R.S. §15-5-703(6), (8)).

What happens if a Colorado co-trustee resigns?

The remaining cotrustees may act for the trust (C.R.S. §15-5-703(2)), and the vacancy need not be filled while one remains in office (§15-5-704(2)).

General information about Colorado law, not legal advice.