Colorado Code
Part 4 - Uniform Principal and Income Act
§ 15-1-402. Definitions

As used in this part 4, unless the context otherwise requires:









(10.5) "Qualified beneficiary" means a beneficiary who, on the date the beneficiary's qualification is determined:





(12.5) "Total return trust" means a trust that is converted to a total return trust pursuant to section 15-1-404.5 or a trust the terms of which manifest the settlor's intent that the trustee will administer the trust in accordance with section 15-1-404.5 (4) and (4.5).


Source: L. 2000: Entire part R&RE, p. 1128, § 1, effective July 1, 2001. L. 2003: (10.5) and (12.5) added, p. 2102, § 1, effective May 22.
Editor's note: This section is similar to former § 15-1-403 as it existed prior to 2001.
"Income beneficiary." The definitions of income beneficiary (Section 15-1-402 (5)) and income interest (Section 15-1-402 (6)) cover both mandatory and discretionary beneficiaries and interests. There are no definitions for "discretionary income beneficiary" or "discretionary income interest" because those terms are not used in the Act.
Inventory value. There is no definition for inventory value in this Act because the provisions in which that term was used in the 1962 Uniform Act have either been eliminated (in the case of the underproductive property provision) or changed in a way that eliminates the need for the term (in the case of bonds and other money obligations, property subject to depletion, and the method for determining entitlement to income distributed from a probate estate).
"Net income." The reference to "transfers under this part 4 to or from income" means transfers made under Sections 15-4-404 (1), 15-1-422 (2), 15-1-427 (2), 15-1-428 (2), 15-1-429 (1), and 15-1-431.
"Terms of a trust." This term was chosen in preference to "terms of the trust instrument" (the phrase used in the 1962 Uniform Act) to make it clear that the Act applies to oral trusts as well as those whose terms are expressed in written documents. The definition is based on the Restatement (Second) of Trusts § 4 (1959) and the Restatement (Third) of Trusts § 4 (Tent. Draft No. 1, 1996). Constructional preferences or rules would also apply, if necessary, to determine the terms of the trust.

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