Probate, Trusts, And Fiduciaries - Digest of Bills

Digest of Bills - 1999

PROBATE, TRUSTS, AND FIDUCIARIES

S.B. 99-101 Fiduciaries' powers - grant conservation easements. Amends the "Colorado Fiduciaries' Powers Act" to give fiduciaries the power to grant a conservation easement in gross. States that if the grant is for less than fair market value, the fiduciary must obtain the written consent of interested persons or an order of the court after notice to interested persons, unless a will or trust instrument directs, permits, or requires a donation of a conservation easement in gross.

APPROVED by Governor March 17, 1999
EFFECTIVE August 4, 1999
NOTE: This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.

S.B. 99-220 Uniform custodial trust act. Adopts the "Colorado Uniform Custodial Trust Act" issued by the national conference of commissioners on uniform state laws.

Allows a person competent to transfer property to create a custodial trust for the benefit of himself or herself or another, such as a spouse or child, and to provide for the future management of assets in the event of incapacity. Allows any kind of property, real or personal, tangible or intangible, to be made the subject of a transfer to a custodial trustee for the benefit of a beneficiary. Provides that while the beneficiary is competent, the beneficiary retains control over withdrawals from accounts and investments. Once the beneficiary is incompetent, provides that the custodial trustee controls the accounts and investments in accordance with the statute and may make payments on behalf of the beneficiary and individuals who were supported by the beneficiary when the beneficiary became incapacitated or who are legally entitled to support from the beneficiary.

Specifies how incapacity is determined by a custodial trustee. Allows for determination of the beneficiary's capacity by the court upon petition of the beneficiary, the custodial trustee, or other person interested in the custodial trust property or the welfare of the beneficiary. Specifies the powers of a custodial trustee.

Allows for the creation of custodial trusts for the distribution of funds by judgment debtors and others to incapacitated persons for whom a conservator has not been appointed. Requires approval by the court for such a trust if the value of the property or debt exceeds $30,000.

Protects third parties acting in good faith upon instructions of a custodial trustee. Limits claims of third parties to recourse against custodial trust property. Protects the custodial trustee and the beneficiary from personal liability in claims brought by third parties, unless the trustee or beneficiary is personally at fault. Specifies statutes of limitations for bringing actions against custodial trustees.

Specifies the methods for creation and termination of custodial trusts under the act. Provides that a custodial trust terminates, if not previously terminated, upon the death of the beneficiary.

APPROVED by Governor June 2, 1999
EFFECTIVE August 4, 1999
NOTE: This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.

H.B. 99-1175 Probate code - authority of guardians and conservators to petition for dissolution of marriage - establishment of presumption of joint tenancy - private arrangements among successors. Allows a guardian of a ward who is an incapacitated person or a conservator of a protected person to petition the court for authority to commence a proceeding for dissolution of marriage or legal separation on behalf of the incapacitated person or protected person.

Establishes a presumption that tangible personal property in the joint possession or control of a decedent and the decedent's surviving spouse at the time of the decedent's death, where ownership is not otherwise evidenced by a certificate of title, bill of sale, or other writing, is owned by the decedent and the decedent's spouse in joint tenancy with right of survivorship. Declares that the presumption of ownership in joint tenancy shall not apply to:

Property acquired by either spouse before the marriage;
Property acquired by either spouse by gift or inheritance during the marriage;
Property used by the decedent spouse in a trade or business in which the surviving spouse has no interest;
Property held for another;
Property devised in a memorandum for the disposition of tangible personal property.

Declares that the presumption of ownership as joint tenants may be overcome by a preponderance of the evidence demonstrating ownership was held other than in joint tenancy.

Clarifies that private agreements made by successors to alter the interests, shares, or amounts to which they are entitled under a will or under the laws of intestacy do not require contractual consideration.

APPROVED by Governor April 30, 1999
EFFECTIVE July 1, 1999