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When Colorado trust beneficiaries disagree

Disagreements among beneficiaries — or with the trustee — are common in a trust administration. This guide describes the paths the Colorado Uniform Trust Code provides, from information to agreement to the court.

El texto completo de esta guía está en inglés; el resumen anterior está en su idioma. Los resúmenes de las leyes y el inglés siguen siendo la fuente de referencia.

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Information first

Many disagreements start with a question. C.R.S. §15-5-813(1) provides that a trustee keeps the qualified beneficiaries reasonably informed and responds promptly to their requests for information related to the administration, and furnishes on request the portions of the instrument that describe or affect a requester's interest (§15-5-813(2)(a)).

Agreement without a court

Colorado allows a binding nonjudicial settlement agreement on any matter involving a trust (C.R.S. §15-5-111(1)). It is valid only to the extent it does not violate a material purpose of the trust and includes terms a court could properly approve (§15-5-111(3)), and any person whose interest may be affected may ask the court to approve or disapprove it (§15-5-111(5)).

A trust may also provide its own method of resolving disputes, and a trustee may resolve a dispute about the trust's interpretation or administration by mediation, arbitration or another procedure (C.R.S. §15-5-816(1)(w)).

The court

The court intervenes in a trust's administration to the extent an interested person invokes its jurisdiction (C.R.S. §15-5-201(1)); a trust is not under continuing supervision unless the court orders it (§15-5-201(2)). The district court — in Denver, the probate court — hears proceedings by a trustee, trust director or beneficiary concerning a trust's administration (§15-5-203).

The settlor, a cotrustee or a beneficiary may ask the court to remove a trustee for the grounds C.R.S. §15-5-706 lists, and for a breach of trust the court may, among other remedies, compel performance, order an accounting, or remove the trustee (§15-5-1001).

The time limits

A beneficiary may not begin a proceeding for breach of trust more than one year after being sent a report that adequately disclosed the potential claim and the time allowed; otherwise the period is three years after the first of the trustee's removal or resignation, the end of the beneficiary's interest, or the trust's termination (C.R.S. §15-5-1005). A contest of a trust that was revocable at the settlor's death has its own period (§15-5-604).

Las leyes, textualmente

  • Limitation of actions against trustee

    C.R.S. §15-5-1005 ↗

    Explicación clara y sencilla; el texto literal del estatuto aún no está atestiguado en nuestra biblioteca. Consulte el estatuto oficial en el enlace de arriba.

  • Nonjudicial settlement agreements

    C.R.S. §15-5-111 ↗

    Explicación clara y sencilla; el texto literal del estatuto aún no está atestiguado en nuestra biblioteca. Consulte el estatuto oficial en el enlace de arriba.

  • Role of court in administration of trust

    C.R.S. §15-5-201 ↗

    Explicación clara y sencilla; el texto literal del estatuto aún no está atestiguado en nuestra biblioteca. Consulte el estatuto oficial en el enlace de arriba.

  • Removal of trustee

    C.R.S. §15-5-706 ↗

    Explicación clara y sencilla; el texto literal del estatuto aún no está atestiguado en nuestra biblioteca. Consulte el estatuto oficial en el enlace de arriba.

Preguntas frecuentes

Can Colorado beneficiaries settle a trust dispute without court?

Yes. C.R.S. §15-5-111 allows a binding nonjudicial settlement agreement on any matter involving a trust, valid to the extent it does not violate a material purpose and contains terms a court could properly approve.

Can beneficiaries remove a Colorado trustee?

A beneficiary, a cotrustee or the settlor may ask the court to remove a trustee, and the court may remove one on the grounds C.R.S. §15-5-706 lists, among them a serious breach of trust.

Which court hears Colorado trust disputes?

The district court or, in the City and County of Denver, the probate court, for proceedings by a trustee, trust director or beneficiary concerning a trust's administration (C.R.S. §15-5-203).

El Centro de Aprendizaje es información general sobre la ley de Colorado — no es asesoría legal ni sustituye el consejo de un abogado de Colorado con licencia sobre sus hechos específicos. TrusteeClear es software, no un bufete.