DISCLAIMER
This template is provided for general informational purposes only and does not constitute legal advice. No attorney-client relationship is created by your review or use of this document. Colorado trust law is highly fact-specific; practitioners must tailor this form to the particular objectives of the Grantor, the needs of the Beneficiaries, and the most current version of the Colorado Revised Statutes (including the Colorado Uniform Trust Code, C.R.S. §§ 15-5-101 et seq.). Engage qualified Colorado counsel and tax advisors before finalizing or relying on this instrument.

COLORADO IRREVOCABLE TRUST AGREEMENT

(Governed by Colorado Trust Law; Exclusive Forum—Colorado State Probate Court)

[// GUIDANCE: Insert firm letterhead or caption block here, if desired.]

TABLE OF CONTENTS

I. Document Header & Recitals
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Defaults & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block
Schedule A — Initial Trust Property

I. DOCUMENT HEADER & RECITALS

1.1 Parties.
(a) Grantor: [GRANTOR FULL LEGAL NAME], an individual residing at [ADDRESS].
(b) Trustee: [TRUSTEE FULL LEGAL NAME], [an individual / a Colorado trust company] with its principal office at [ADDRESS].
(c) Beneficiaries: The persons or entities identified in Section 3.6.

1.2 Effective Date. This Agreement is effective as of [EFFECTIVE DATE] (the “Effective Date”).

1.3 Creation of Trust. Pursuant to C.R.S. §§ 15-5-401 et seq., Grantor hereby transfers, assigns, and delivers to Trustee the property described on Schedule A (the “Initial Trust Property”) to hold in trust (the “Trust”) for the uses and purposes set forth herein.

1.4 Irrevocability. This Trust is irrevocable; Grantor expressly waives all rights and powers, whether alone or in conjunction with others, to alter, amend, revoke, or terminate this Trust except as expressly provided in Section 3.11 and applicable law.

II. DEFINITIONS

For ease of reference, capitalized terms have the following meanings (alphabetically):

“Accounting Period” means each calendar year ending December 31, or such shorter period ending on Trust termination.

“Agreement” means this Colorado Irrevocable Trust Agreement, including all schedules and amendments.

“Applicable Law” means the Colorado Revised Statutes, the Colorado Uniform Trust Code (C.R.S. §§ 15-5-101 et seq.), the Colorado Uniform Prudent Investor Act (C.R.S. §§ 15-1.1-101 et seq.), relevant federal tax law, and any successor statutes.

“Beneficial Interest” has the meaning set forth in Section 3.6(a).

“Beneficiary” and “Qualified Beneficiary” have the meanings assigned in C.R.S. §§ 15-5-103(3) & (16).

“Grantor” has the meaning given in Section 1.1(a).

“Trust Assets” means all property held by Trustee from time to time, including all additions and accretions.

“Trustee” has the meaning given in Section 1.1(b) and includes any successor Trustee appointed in accordance with this Agreement.

[Add additional definitions as required.]

III. OPERATIVE PROVISIONS

3.1 Transfer and Acceptance.

Grantor hereby irrevocably transfers the Initial Trust Property to Trustee, and Trustee accepts the property in trust, to be held, managed, invested, and distributed as provided herein.

3.2 Name of Trust.

The Trust shall be known as “[GRANTOR] Irrevocable Trust dated [EFFECTIVE DATE]” (the “Trust”).

3.3 Purpose.

The primary purpose of the Trust is to:
(a) provide for the health, education, maintenance, and support of the Beneficiaries; and
(b) facilitate efficient multi-generational wealth management and transfer, including potential estate-tax reduction under Chapter 11 of the Internal Revenue Code.

[// GUIDANCE: Customize objectives (e.g., charitable giving, asset-protection, special-needs planning).]

3.4 Irrevocability; Limited Modifications.

(a) The Trust may not be revoked by Grantor.
(b) Modifications are permitted only:
 (i) by unanimous written consent of Trustee and all Qualified Beneficiaries, to the extent authorized under C.R.S. § 15-5-411; or
 (ii) by court order under C.R.S. § 15-5-412.

3.5 Additions to Trust.

Grantor or any third party may at any time add property to the Trust, subject to Trustee’s acceptance.

3.6 Beneficiaries.

(a) Current Beneficiaries: [List or describe] (each a “Current Beneficiary”).
(b) Remainder Beneficiaries: [List or describe].
(c) Creation of subclasses or separate shares shall be governed by Section 3.8.

3.7 Distributions.

(a) Mandatory Distributions. [Describe, if any.]
(b) Discretionary Distributions. Trustee may distribute income or principal to or for the benefit of any Current Beneficiary in Trustee’s sole discretion, considering the Beneficiary’s other resources.
(c) Standard of Judgment. Trustee shall act in good faith and in accordance with the prudent-person rule under C.R.S. § 15-1.1-102.

[// GUIDANCE: Insert HEEMS/HEMS standard if desired; coordinate with estate-tax objectives.]

3.8 Separate Shares / Sprinkling.

[Draft share allocation mechanics or sprinkle provisions.]

3.9 Spendthrift Provision.

To the maximum extent permitted by C.R.S. §§ 15-5-502 & -503, the interest of any Beneficiary shall not be subject to voluntary or involuntary alienation, attachment, or anticipation.

3.10 Trustee Powers.

Subject to Applicable Law, Trustee shall have all powers granted under C.R.S. § 15-5-815, including without limitation the power to:
(a) invest and reinvest Trust Assets under the Colorado UPIA;
(b) buy, sell, or exchange property;
(c) borrow funds and encumber Trust Assets;
(d) settle or compromise claims; and
(e) employ professionals at the expense of the Trust.

3.11 Tax Provisions.

(a) Grantor-Trust Rules. [Select: “This Trust is / is not intended to be a grantor trust under I.R.C. §§ 671-679.”]
(b) Tax Identification. Trustee shall obtain an EIN and file all required federal and Colorado returns.
(c) Tax Reimbursement Clause. [Optional] Trustee may, but is not required to, reimburse Grantor for income taxes payable as a result of Trust income.

[// GUIDANCE: Coordinate with accountant; improper drafting may trigger estate-tax inclusion under I.R.C. § 2036.]

3.12 Accounting & Information Rights.

(a) Trustee shall provide annual written accountings within 90 days after each Accounting Period to all Qualified Beneficiaries.
(b) Additional information shall be furnished upon reasonable request, consistent with C.R.S. § 15-5-813.

3.13 Termination of the Trust.

Unless terminated earlier in accordance with law or Section 3.4(b), the Trust shall terminate upon the first to occur of:
(a) [DATE/EVENT]; or
(b) 21 years after the death of the last surviving descendant of [REFERENCE PERSON] living on the Effective Date, consistent with the rule against perpetuities, if applicable.

Upon termination, Trustee shall distribute the remaining Trust Assets to the then-living Remainder Beneficiaries, per stirpes, free of trust.

IV. REPRESENTATIONS & WARRANTIES

4.1 Grantor.

(a) Legal capacity to create this Trust and to transfer the Initial Trust Property free of encumbrances.
(b) No pending litigation or creditor claims that would impair transfer.

4.2 Trustee.

(a) Possesses requisite fiduciary capacity and, if an entity, is duly organized, validly existing, and in good standing in its jurisdiction of formation.
(b) Will administer the Trust in strict accordance with this Agreement and Applicable Law.

4.3 Survival.

All representations and warranties survive execution of this Agreement and remain in effect until final distribution.

V. COVENANTS & RESTRICTIONS

5.1 Trustee Covenants.

(a) Perform duties with loyalty, impartiality, and prudence.
(b) Maintain complete and accurate records.
(c) Segregate Trust Assets from personal or third-party assets.

5.2 Negative Covenants.

Trustee shall not:
(a) engage in self-dealing except as permitted under C.R.S. § 15-5-802;
(b) delegate discretionary distribution decisions except as allowed by statute;
(c) commingle Trust funds with non-trust property.

5.3 Notice & Cure.

Upon discovering any breach of fiduciary duty, Trustee shall promptly notify Qualified Beneficiaries and take corrective action within [30] days.

VI. DEFAULTS & REMEDIES

6.1 Events of Default.

(a) Trustee’s material breach of fiduciary duties.
(b) Trustee’s insolvency or resignation without qualified successor.
(c) Judicial determination of Trustee’s incapacity or misconduct.

6.2 Remedies.

(a) Removal and replacement of Trustee pursuant to C.R.S. § 15-5-706.
(b) Surcharge against Trustee’s compensation.
(c) Injunctive relief or specific performance in the state probate court of [COUNTY], Colorado.
(d) Recovery of reasonable attorneys’ fees and costs borne by the prevailing party.

VII. RISK ALLOCATION

7.1 Indemnification of Trustee.

(a) The Trust shall indemnify, defend, and hold Trustee harmless against any claim, liability, or expense arising from administration of the Trust, except to the extent resulting from Trustee’s gross negligence, willful misconduct, or bad faith.
(b) Indemnification is limited exclusively to Trust Assets; no Beneficiary or Grantor shall have personal liability.

7.2 Limitation of Liability.

Trustee’s total aggregate liability under this Agreement shall not exceed the value of the Trust Assets under Trustee’s control at the time the liability is determined.

7.3 Insurance.

Trustee may maintain fiduciary liability insurance, the premiums of which shall be paid from Trust Assets.

7.4 Force Majeure.

Trustee shall not be liable for failure to perform caused by events beyond its reasonable control, including but not limited to acts of God, war, terrorism, or governmental restrictions.

VIII. DISPUTE RESOLUTION

8.1 Governing Law.

This Agreement and the Trust are governed by the laws of the State of Colorado, without regard to conflict-of-laws principles.

8.2 Forum Selection.

The parties submit exclusively to the jurisdiction of the state probate court of [COUNTY], Colorado for all proceedings concerning the Trust, subject to Section 8.3.

8.3 Optional Arbitration.

[SELECT ONE—strike inapplicable]
☐ Not Applicable.
☐ Arbitration: Any dispute not resolved within 60 days shall be submitted to binding arbitration administered by the American Arbitration Association in [CITY], Colorado. Judgment on the award may be entered in the designated probate court. Nothing herein limits the court’s supervisory jurisdiction under C.R.S. § 15-5-201.

8.4 Jury Waiver.

No jury trial is available in probate matters under Colorado law; any right thereto is expressly waived.

8.5 Injunctive Relief.

Nothing in this Article limits the right of any party to seek provisional or injunctive relief to protect Trust Assets or enforce fiduciary duties.

IX. GENERAL PROVISIONS

9.1 Amendments.

Except as permitted in Section 3.4, this Agreement may be amended only by (i) written instrument executed by Trustee and all Qualified Beneficiaries, and (ii) approval of the probate court if required.

9.2 Waivers.

No waiver is effective unless in writing and signed by the waiving party.

9.3 Assignment.

Beneficial interests are not assignable, and Trustee may not delegate core fiduciary responsibilities except as expressly allowed herein or by law.

9.4 Successors & Assigns.

This Agreement binds and benefits the parties and their permitted successors.

9.5 Severability.

If any provision is held unenforceable, the remaining provisions shall remain in full force, and the court may reform the Agreement to effectuate its purposes.

9.6 Integration.

This Agreement constitutes the entire understanding and supersedes all prior agreements concerning the subject matter.

9.7 Counterparts; Electronic Signatures.

This Agreement may be executed in counterparts, each deemed an original, and delivered by electronic means with the same force as an ink-signed original.

X. EXECUTION BLOCK

IN WITNESS WHEREOF, the parties execute this Colorado Irrevocable Trust Agreement as of the Effective Date.

[// GUIDANCE: If Trustee is a corporate fiduciary, add officer title and corporate acknowledgment.]

NOTARIZATION

State of Colorado )
County of ____) ss.

Acknowledged before me on __, 20_ by _________ as Grantor.

Notary Public
My commission expires: _____

(Repeat notarial block for Trustee if required.)

SCHEDULE A – INITIAL TRUST PROPERTY

1. $[CASH AMOUNT] in cash.
2. [Number] shares of [Company] common stock, certificate no. ____.
3. [Real property legal description], located at [ADDRESS], Colorado.

[Add or revise items as applicable.]

[// GUIDANCE:
• Attach any appraisals, deeds, or assignment documents transferring property into the Trust.
• Record real property deeds in the office of the clerk and recorder of the county where the property is located, referencing the Trust by name and date.
• Review Colorado Rule of Civil Procedure 4(f) for service requirements if court approval is later sought.]