Republished with permission, originally appeared in the Colorado Lawyer, Vol. 50, No. 9, October 2021.
Trustees face challenges when administering trusts that own closely held business assets.
With Nevada and Wyoming in close proximity to Colorado, the question often arises whether trustees should move a trust’s principal place of administration (or situs) to one of these states for more favorable asset protection or income tax treatment. In recent years, Colorado has provided clarity and flexibility in trust administration through various legislation, including the Colorado Uniform Directed Trust Act (2014), the Colorado Uniform Trust Decanting Act (2016), and most recently the Colorado Uniform Trust Code (CUTC) (2019 and 2021).1 These laws provide statutory guidance for trustees and facilitate trust administration, making Colorado a more attractive trust situs than many other states.
This article reviews situs considerations, including a trustee’s duty to consider a transfer of situs and options for completing a transfer.
Rebecca Klock Schroer and Margot Edwards are partners in the Trust and Estate Litigation Group at Holland & Hart LLP. They counsel clients on a range of tax and estate planning matters, focusing on the representation of fiduciaries, beneficiaries, entrepreneurs, and professional and family trustees.
Please see full publication for more information: Selecting a Trust Situs: What Should a Trustee Consider?