Colo. Rev. Stat. § 15-11-901
effective July 1, 1995
§ 15-11-901. 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.