Colorado Living Trust Form (Revocable)

1. Competent: The grantor must have the capacity to create a trust.
2. Intent: The grantor must indicate an intention to create a trust.
3. Definite Beneficiary: Unless it is a charitable trust or a trust for the care of an animal, the trust must have a definite beneficiary.
4. Trustee’s Duties: The trustee must have duties to perform.
5. Sole Trustee Cannot be the Sole Beneficiary: The same person cannot be the sole trustee and the sole beneficiary.^[1]

Amending/Revoking – Unless the terms of the trust expressly state that it is irrevocable, the grantor may amend or revoke the trust.^[2]

Bond Requirement – The trustee is only required to put forward a bond if the court finds that such a bond is necessary to protect the interests of the beneficiaries or if this is a requirement under the terms of the trust.^[3]

Certification of Trust – In lieu of a copy of the trust instrument, the trustee may furnish a person other than a beneficiary with a certification of trust stating the date that the trust was created, the identity of the grantor, and other pertinent information.^[4]

Co-Trustees – Co-trustees may act by majority decision if they are unable to reach a unanimous decision.^[5]

Contesting a Trust – A person must commence a proceeding to contest the validity of a trust within 120 days of when the trustee sent that person a copy of the trust instrument or within three years of the grantor’s death, whichever is earlier.^[6]

Costs Related to the Trust – In administering the trust, the trustee may only incur costs that are reasonable and appropriate in relation to the trust’s property and purposes.^[7]

Jurisdiction – A trust not created by will is considered valid in Colorado if its creation was in compliance with the laws of the jurisdiction in which the trust instrument was executed.^[8]

Oral Trusts – Only clear and convincing evidence may be used to establish the creation of an oral trust and its terms.^[9]

Pet Trusts – A trust may be created to provide for the care of a designated animal or animals, as well as the animals’ offspring in gestation. Unless the trust instrument sets an earlier termination date, the trust terminates upon the death of the animal(s).^[10]

Signing Requirements – There is no signature requirement for the valid creation of a living trust in Colorado.

Spendthrift Provision – A spendthrift provision is only held to be valid if it restrains both the voluntary and involuntary transfer of a beneficiary’s interest.^[11]

Trustee’s Compensation – If the trust’s terms do not specify the trustee’s compensation, the trustee is otherwise entitled to reasonable compensation for their services.^[12]

Trustee’s Duties – The trustee must prudently administer the trust in good faith, in accordance with its terms and the laws of Colorado, and in the interests of the beneficiaries.^[13]

Trustee’s Powers – In addition to those powers listed in the trust instrument, the trustee is empowered to collect, acquire, sell, exchange, partition, or otherwise change the character of trust property.^[14]