{"data":{"id":"us-co/c.r.s.-15-1.2-502","jurisdiction":"us-co","citation":"C.R.S. § 15-1.2-502","heading":"Disbursement from principal.","body":"(1) Subject to section 15-1.2-505, and except as otherwise provided in section 15-1.2-601 (3)(b), a fiduciary shall disburse from principal:\n\n(a) The balance of the disbursements described in section 15-1.2-501 (1)(a) and (1)(c), after application of section 15-1.2-501 (1)(b);\n\n(b) The fiduciary's compensation calculated on principal as a fee for acceptance, distribution, or termination;\n\n(c) A payment of an expense to prepare for or execute a sale or other disposition of property;\n\n(d) A payment on the principal of a trust debt;\n\n(e) A payment of an expense of an accounting, judicial or nonjudicial proceeding, or other matter that involves primarily principal, including a proceeding to construe the terms of the trust or protect property;\n\n(f) A payment of a premium for insurance, including title insurance, not described in section 15-1.2-501 (1)(d), of which the fiduciary is the owner and beneficiary;\n\n(g) A payment of an estate or inheritance tax or other tax imposed because of the death of a decedent, including penalties, apportioned to the trust; and\n\n(h) A payment:\n\n(I) Related to environmental matters, including:\n\n(A) Reclamation;\n\n(B) Assessing environmental conditions;\n\n(C) Remedying and removing environmental contamination;\n\n(D) Monitoring remedial activities and the release of substances;\n\n(E) Preventing future releases of substances;\n\n(F) Collecting amounts from persons liable or potentially liable for the costs of activities described in subsections (1)(h)(I)(A) through (1)(h)(I)(E) of this section;\n\n(G) Penalties imposed under environmental laws or regulations;\n\n(H) Other actions to comply with environmental laws or regulations;\n\n(I) Statutory or common law claims by third parties; and\n\n(J) Defending claims based on environmental matters; and\n\n(II) For a premium for insurance for matters described in subsection (1)(h)(I) of this section.\n\n(2) If a principal asset is encumbered with an obligation that requires income from the asset to be paid directly to a creditor, the fiduciary shall transfer from principal to income an amount equal to the income paid to the creditor in reduction of the principal balance of the obligation.","path":["Title 15 - PROBATE, TRUSTS, AND FIDUCIARIES","Article 1.2 - Uniform Fiduciary Income and Principal Act","Part 5 - ALLOCATION OF DISBURSEMENTS"],"source_url":"https://olls.info/crs/crs2026-title-15.htm","current_through":"Colorado Revised Statutes 2026","vintage":"","retrieved_at":"2026-09-14T18:37:45Z","sha256":"b56296f7e7463721c92f096d839217916013d2c317342b30c577a5f7a45d8710","source_id":"us-co","stale":false,"prev":"us-co/c.r.s.-15-1.2-501","next":"us-co/c.r.s.-15-1.2-503"},"notice":"GroundRules: Original legal text. Not legal advice."}