If any part of the principal consists of property other than natural resources, subject to depletion, such as leaseholds, patents, copyrights, and royalty rights, and the trustee or tenant in possession is not under a duty to change the form of the investment of the principal, the full amount of rents, royalties, or return from the property shall be income to the tenant; except that, where the trustee or tenant is under a duty, arising either by law or by the terms of the transaction by which the principal was established, to change the form of the investment, either at once or as soon as it may be done without loss, then the return from such property not in excess of four percent per annum of its fair inventory value, which in the case of a testamentary trust, unless a contrary intention appears from the will, shall be the value at date of death, or, in default of same, its market value at the time the principal was established, or at its cost where purchased later, shall be deemed income and the remainder principal.
Source: L. 2009: Entire section added, (HB 09-1241), ch. 169, p. 754, § 14, effective April 22.
Structure Colorado Code
Title 15 - Probate, Trusts, and Fiduciaries
Part 4 - Uniform Principal and Income Act
§ 15-1-403. Fiduciary Duties - General Principles
§ 15-1-404. Trustee's Power to Adjust
§ 15-1-404.5. Conversion - Unitrusts - Administration
§ 15-1-406. Determination and Distribution of Net Income
§ 15-1-407. Distribution to Residuary and Remainder Beneficiaries
§ 15-1-408. When Right to Income Begins and Ends
§ 15-1-409. Apportionment of Receipts and Disbursements When Decedent Dies or Income Interest Begins
§ 15-1-410. Apportionment When Income Interest Ends
§ 15-1-411. Character of Receipts
§ 15-1-412. Distribution From Trust or Estate
§ 15-1-413. Business and Other Activities Conducted by Trustee
§ 15-1-414. Principal Receipts
§ 15-1-416. Obligation to Pay Money
§ 15-1-417. Insurance Policies and Similar Contracts
§ 15-1-418. Insubstantial Allocations Not Required
§ 15-1-419. Deferred Compensation, Annuities, and Similar Payments
§ 15-1-421. Minerals, Water, and Other Natural Resources
§ 15-1-421.5. Disposition of Natural Resources
§ 15-1-423. Property Not Productive of Income
§ 15-1-424. Derivatives and Options
§ 15-1-425. Asset-Backed Securities
§ 15-1-426. Disbursements From Income
§ 15-1-427. Disbursements From Principal
§ 15-1-428. Transfers From Income to Principal for Depreciation
§ 15-1-429. Transfers From Income to Reimburse Principal
§ 15-1-431. Adjustments Between Principal and Income Because of Taxes
§ 15-1-432. Uniformity of Application - Construction
§ 15-1-434. Effective Date - Application to Existing Trusts and Estates - Election
§ 15-1-435. Application of Certain Provisions - Notice of Election
§ 15-1-436. Transitional Matters
§ 15-1-452. Source and Prior Enactment - Uniform Application
§ 15-1-453. Definitions - Construction of Terms
§ 15-1-455. Application of This Subpart 7 - Powers of Settlor
§ 15-1-456. Income and Principal - Disposition
§ 15-1-457. Apportionment of Income
§ 15-1-458. Corporate Dividends and Share Rights
§ 15-1-459. Premium and Discount Bonds
§ 15-1-460. Principal Used in Business
§ 15-1-461. Principal Comprising Animals
§ 15-1-462. Principal Subject to Depletion
§ 15-1-463. Unproductive Estate
§ 15-1-464. Disposition of Natural Resources
§ 15-1-464.5. Disposition of Natural Resources - Special Applicability
§ 15-1-465. Expenses - Trust Estates
§ 15-1-466. Expenses - Nontrust Estates