Taking on the role of a trustee can be a big responsibility, as there are various legal obligations that you will assume when you step into this position. This is because trustees are considered to be “fiduciaries” under Colorado law.

Because there may be various things that you need to be aware of in order to appropriately carry out your Colorado trustee duties, in this blog series, we will discuss some of the most important facts you may need to know as you prepare to administer a trust.

While we’ve intentionally kept the discussion herein general (to be as widely applicable as possible), you can get more specific answers and straightforward professional advice regarding your situation by contacting the trusted Pueblo and Trinidad estate planning attorneys at Gradisar, Trechter, Ripperger & Roth today. We have the experience you can count on, and we are ready to start helping you now.

Colorado Trustee Duties: Here’s What You May Need to Know

Fact 1 – A trust document will specify some of your Colorado trustee duties.

Colorado trustee duties will include some ethical duties, as well as some obligations specified in trust documents. Here’s what you should know about Colorado trustee duties.

Colorado trustee duties will include some ethical duties, as well as some obligations specified in trust documents. Here’s what you should know about Colorado trustee duties.

Whether a trust document has specifically named you as a trustee or you have been appointed by the court, you will be bound to carry out the terms of the trust, according to the specific details laid out in the trust document.

Although trust documents can vary widely and can require trustees to do certain things (or to specifically prevent trustees from doing certain things), in general, some of the commonly identified duties in trust documents can include:

  • Managing the assets of the trust
  • Distributing the assets of the trust to the beneficiaries (according to the terms of the trust)
  • Keeping the beneficiaries informed about the status/actions of the trust.

Fact 2 – Your Colorado trustee duties will also include some ethical duties.

Along with whatever specific Colorado trustee duties that have been outlined in the trust documents, trustees will also have some general ethical duties to fulfill as they administer trusts. Typically, these ethical Colorado trustee duties include (but may not be limited to):

  • Impartiality, meaning that trustees are required to treat all beneficiaries, creditors and other “interested parties” associated with the trust in an unbiased manner, not favoring any person (or entity) over another
  • Loyalty, meaning that trustees are required to always act in the best interest of the trust when performing Colorado trustee duties – In other words, trustees are usually NOT permitted to advance their own interests above those of the trust and its beneficiaries when administering the trust.
  • Prudence, meaning that trustees are also obligated to act with care as they manage, invest and/or distribute the assets of a trust – Part of being prudent in carrying out Colorado trustee duties also requires trustees to maintain the assets of the trust separate from their own personal assets.

To get some more important info about Colorado trustee duties, be sure to look for the additional installments of this blog series. They will be published soon.

Trinidad and Pueblo Estate Planning Attorneys at Gradisar, Trechter, Ripperger & Roth

Do you need help administering a trust or resolving any estate planning issue? If so, it’s time to contact the Trinidad and Pueblo estate planning attorneys at Gradisar, Trechter, Ripperger & Roth to learn more about our legal services, as well as how we can help you today.Contact us by calling (719) 556- 8844 or by emailing us using the contact form on this page.

From our offices based in Pueblo, we represent clients in Trinidad, La Jara, Lamar, Walsenburg, Alamosa and throughout the state of Colorado.

Categories: Blog, Estate Planning, Trust Administration