SB16-085: Colorado Uniform Trust Decanting Act

• Establishes the "Colorado Uniform Trust Decanting Act" allowing authorized fiduciaries to distribute or modify irrevocable trusts and revocable trusts (revocable only with trustee or adverse party consent) without court approval or beneficiary consent.

• Requires fiduciaries to provide written notice to beneficiaries, settlors, power of appointment holders, and other parties at least 62 days before exercising decanting powers, with exceptions for minors and unknown beneficiaries.

• Permits fiduciaries with expanded or limited distributive discretion to create second trusts while protecting vested interests, charitable interests, and tax-qualified trusts, including special-needs trusts for disabled beneficiaries.

• Authorizes court involvement to provide instructions, appoint special fiduciaries, approve exercises, or determine whether proposed decanting powers comply with the act and fiduciary duties.

• Takes effect August 10, 2016, unless a referendum petition is filed, in which case approval by voters at the November 2016 general election is required.