New Trust Decanting Statute - by Dale E. Johnson

The Colorado Legislature has recently been discussing whether to pass a version of the Uniform Trust Decanting Act. This bill is of major interest to Colorado matrimonial lawyers because it could, arguably change Colorado law regarding trust interests being marital property in a dissolution of marriage action. The bill authorizes a trustee, under certain circumstances, to move trust assets (“decant”) from one trust to another. There is concern that, if the bill is passed, trustees could “decant” marital trust property interests into non-marital interests as part of divorce planning. This is a bill that is of more than passing interest to many in Boulder County as there are numerous trust beneficiaries residing here.