But, the trust instrument and common law often play a critical role in determining the scope and precise nature of any given trustee’s duties. The Colorado General Assembly has codified many of the fiduciary duties that a trustee owes to a beneficiary in Title 15 of the Colorado Revised Statutes. What duties does a trustee owe to the beneficiaries of a trust?Īs a fiduciary, a trustee owes the beneficiaries of a trust several duties.
A trustee’s broad power is subject to numerous fiduciary duties. But, as Voltaire (and then Spiderman’s uncle Ben) said, with great power comes great responsibility. “All powers over trust property that an unmarried competent owner has over individually owned property,” unless that power is “limited by the terms of the trust.” § 15-5-815(1)(b), C.R.S. Generally speaking, Colorado statute empowers a trustee. In addition, the provisions in Title 15, Article 5, Part 8 of the Colorado Revised Statutes confer broad power to a trustee to administer the trust and manage the property it holds. It describes whether there are any limitations on the trustee’s powers, and may prohibit the trustee from taking, or refraining to take, certain actions. Typically, the trust instrument will describe what the trustee can or should do. To determine which powers any particular trustee holds, the first place to look is the trust instrument itself. In certain instances, may owe duties to other interested parties.
In all instances, a trustee owes duties to the trust beneficiaries. One or more people, or a company, may serve as a trustee or co-trustees. Usually, a trustee manages the property or money subject to the trust on behalf of the trust’s beneficiaries. It is an arrangement often set out in a trust instrument whereby someone’s property/money is held for another’s benefit.
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