Colo. Rev. Stat. Ann.
§ 15-11-901 (2002). Honorary trusts; trusts for pets.
(1) Honorary trust. Subject to subsection
(3) of this section, and except as provided under
sections 38-30-110, 38-30-111, and 38-30-112, C.R.S.,
if (i) a trust is for a specific, lawful,
noncharitable purpose or for lawful, noncharitable
purposes to be selected by the trustee and (ii) there
is no definite or definitely ascertainable beneficiary
designated, the trust may be performed by the trustee
for twenty-one years but no longer, whether or not the
terms of the trust contemplate a longer duration.
(2) Trust for pets. Subject to this
subsection (2) and subsection (3) of this section, a
trust for the care of designated domestic or pet
animals and the animals' offspring in gestation is
valid. For purposes of this subsection (2), the
determination of the "animals' offspring in gestation"
is made at the time the designated domestic or pet
animals become present beneficiaries of the trust.
Unless the trust instrument provides for an earlier
termination, the trust terminates when no living
animal is covered by the trust. A governing instrument
shall be liberally construed to bring the transfer
within this subsection (2), to presume against the
merely precatory or honorary nature of the
disposition, and to carry out the general intent of
the transferor. Extrinsic evidence is admissible in
determining the transferor's intent. Any trust under
this subsection (2) shall be an exception to any
statutory or common law rule against perpetuities.
(3) Additional provisions applicable to honorary
trusts and trusts for pets. In addition to the
provisions of subsection (1) or (2) of this section, a
trust covered by either of those subsections is
subject to the following provisions:
(a) Except as expressly provided otherwise in the
trust instrument, no portion of the principal or
income may be converted to the use of the trustee,
other than reasonable trustee fees and expenses of
administration, or to any use other than for the
trust's purposes or for the benefit of a covered
animal or animals.
(b) Upon termination, the trustee shall transfer the
unexpended trust property in the following order:
(I) As directed in the trust instrument;
(II) If the trust was created in a nonresiduary
clause in the transferor's will or in a codicil to the
transferor's will, under the residuary clause in the
transferor's will; and
(III) If no taker is produced by the application of
subparagraph (I) or (II) of this paragraph (b), to the
transferor's heirs under part 5 of this article.
(c) (Reserved)
(d) The intended use of the principal or income can
be enforced by an individual designated for that
purpose in the trust instrument, by the person having
custody of an animal for which care is provided by the
trust instrument, by a remainder beneficiary, or, if
none, by an individual appointed by a court upon
application to it by an individual.
(e) All trusts created under this section shall be
registered and all trustees shall be subject to the
laws of this state applying to trusts and trustees.
(f) (Reserved)
(g) If no trustee is designated or no designated
trustee is willing or able to serve, a court shall
name a trustee. A court may order the transfer of the
property to another trustee, if required to assure
that the intended use is carried out and if no
successor trustee is designated in the trust
instrument or if no designated successor trustee
agrees to serve or is able to serve. A court may also
make such other orders and determinations as shall be
advisable to carry out the intent of the transferor
and the purpose of this section.
Source: L. 94: Entire part R&RE, p. 1034, § 3,
effective July 1, 1995. L. 95: (2) amended, p. 361, §
15, effective July 1. |
