What Must be Done to Pass Probate Assets on to Heirs in Colorado?
After all non-probate assets are determined, the remaining probate assets are generally administered in one of three ways:
1. “Small Estate Affidavit:” If the value of probate assets in an estate is $60,000 or less, a successor to the decedent can fill out a “Small Estate Affidavit” and present it to the holders of the assets. The persons or institutions holding the assets will then release them to the successor without further action. This works for all assets except real estate - regardless of how little its value.
2. Informal Probate: The vast majority of Colorado estates are administered informally. Informal administration means the estate is not court supervised. A Colorado probate attorney would have a limited role in these proceedings.
Administration of an estate is commenced by filing special documents with the Colorado probate court. While the initial documents may appear uncomplicated, they contain many traps that may complicate an estate settlement later. Anyone attempting to settle a probate estate may find it beneficial to consult with a probate attorney before getting too deep in the process.
Once the estate is “opened,” the personal representative (formerly known as an “executor”) is responsible for paying the bills and taxes and distributing the remaining probate assets to the beneficiaries. All creditors must be paid in accordance with statutory priority.
Estate administration can take as little as 6 months for a simple estate or as long as several years in complex cases. Most Colorado estates are administered in 6 to 12 months.
3. Formal Probate: A supervised administration, or formal probate, is needed when there is a dispute among the parties who have an interest in the estate. In causes like these, the Colorado Probate Court Judge will resolve disputes and issue orders which all parties must follow.
An Estate may be closed informally by filing a document stating that the personal representative has paid all debts and taxes and delivered the property to those entitled to it.
Be aware that Colorado law requires a decedent’s will to be filed with the Colorado Probate Court within ten days of death, even if there is no need to actually probate the estate.
Tomorrow we will begin our discussion on tax issues that will affect Colorado estates.
For more information on probate click here for access to our free guide to Colorado probate.