Chapter 20 - § 20.10 • BANK ACCOUNTS

• Jurisdiction: Colorado

§ 20.10 • BANK ACCOUNTS

The representative is under a duty to exercise reasonable precaution in selecting a depository for the funds of the estate (Estate of Thomas, 56 P. 907), not to mingle them with his or her own funds, and not to leave them on deposit without interest for an unreasonable time. The court will surcharge the representative with the income that should have been earned. Estate of Macky, 213 P. 131. There should be regard for the amount of the insurance provided by the agencies of the federal government, and deposits should be kept within the limits observed by prudent persons, taking into consideration the size of the estate and the size and reputation of the bank.¹⁹ In the absence of statutory or other authority, the representative should not enter into arrangements whereby he or she cannot withdraw the deposits at will.²⁰ In 1979, Colorado repealed its statute authorizing such restrictive arrangements with surety companies.²¹

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Notes:

^[19] Scott on Trusts §§ 180 through 180.4 (3d ed.); Bogert, The Law of Trusts & Trustees, supra n. 3, at § 598; see Thompson, ...