After you lose a loved one, the consequences are not only emotional. There are also important practical and financial matters like tracking down their will, distinguishing joint property from separate property, and going through Colorado probate court.
Even if you know you’re entitled to a portion of the estate, receiving your money isn’t always straightforward or quick. If you need the funds sooner, Rockpoint Probate Funding can help. We offer cash advances against your pending inheritance in as little as one day.
If you are an heir to an estate, it’s important to understand how Colorado probate works.
What Is Probate?
Probate is the legal process of transferring a deceased person’s property to heirs. It can involve following the direction of a will or the state’s laws if the person dies without a will.
Probate courts verify the existence and authenticity of the will (if one exists), review the deceased person’s assets, and determine legal heirs. While careful estate planning can simplify the process, probate proceedings are usually required for sizable estates even when a will exists.
Although laws and timelines vary by state, probate can be costly, complicated, and time consuming. Thankfully, every state offers ways around probate, including Colorado. Whether you qualify for a non-probate option depends on the estate’s size, type, and complexity.
Does Colorado Require Probate?
State law requires probate in the majority of cases. There are three types of Colorado probate:
- Formal probate: High-value or complex estates often require the highest level of court supervision. The state also requires formal probate for contested, invalid, or unclear wills.
- Informal probate: Colorado typically allows a more informal process for uncontested estates. The court oversees the administration but is not as actively involved.
- Small estates: Estates under a certain value (the number is adjusted for inflation each year) and without real estate don’t need to go through probate court. Instead, heirs can transfer property via a small estate affidavit (JDF 999).
Not all assets require probate because the named beneficiary receives them automatically. Examples include the following:
- Joint tenancies
- Assets in a revocable living trust
- Property with transferable-on-death designations
- Life insurance policies, bank accounts, and retirement accounts with a named beneficiary
What Is the Colorado Probate Process?
The Colorado probate process involves the following steps:
- Filing for probate: Colorado law requires the filing of probate forms with the probate court in the county where the decedent lived. They’ll also need the original will and a certified copy of the death certificate.
- Determining the personal representative: Also known as an executor, the personal representative carries out the decedent’s wishes (or state law in the absence of a will). The will can name a personal representative, or the court can appoint one.
- Collecting and valuing property: The personal representative must locate, inventory, appraise, and secure the deceased’s assets for distribution to beneficiaries. They may also need to sell property and transfer titles.
- Satisfying financial obligations: The personal representative must notify creditors, pay off debts, and handle outstanding tax liabilities (including filing tax returns).
- Closing the estate: After distributing assets and fulfilling all duties, the personal representative asks the court to close the estate.
How Long Does Colorado Probate Take?
Probate proceedings in Colorado typically last from nine months to two years. Both formal and informal probates must be open for a minimum of six months. If there is no will, there are multiple versions of a will, or there are other complications (like business ownership or tax issues), it can take significantly longer.
How Much Are Colorado Probate Fees?
The final cost for probate depends on the size of the estate and the complexity of the process. Common Colorado probate fees include the following:
- Filing fees: It costs $199 to open informal or formal probate with the court.
- Other court fees: If the court appoints a personal representative, it costs an additional $199.
- Legal fees: Probate may involve attorney fees if a law firm works on the case.
- Executor fees: Executor compensation is often 2%-5% of the estate’s value but may vary or be waived.
- Professional fees: Settling the estate may require the use of appraisers, accountants, or other professionals.
- Probate bonds: The court may issue a bond to protect the estate from executor misconduct or negligence.
What Happens When Someone Dies Without a Will?
When a Colorado resident dies without a will, intestate succession laws determine the order of priority and percentage of the estate for each heir. The court typically names a personal representative to distribute the estate and settle any financial liabilities.
Which heirs receive which assets via intestate succession depends on whether the decedent was married and had children. Property usually goes to the surviving spouse and/or children but can also go to other biological relatives in certain situations.
Intestate succession laws don’t govern assets that don’t pass through probate, such as property held jointly, in living trusts, or with transfer-on-death designations.
Understanding the Role of a Personal Representative
The personal representative plays a crucial role in the Colorado probate process, acting as the executor tasked with fulfilling the decedent’s wishes as outlined in their will, or following state law when no will exists. This individual is responsible for gathering the deceased’s assets, settling debts, and distributing the remaining estate to the rightful heirs. Understanding the responsibilities of this position is essential for family members and beneficiaries, as it can influence the timeline and efficiency of the probate process.
In order to serve in this role, the personal representative must be organized, detail-oriented, and able to communicate effectively with all parties involved. They often need to work closely with attorneys, accountants, and appraisers to ensure that proper legal procedures are followed. It’s important to note that personal representatives can be held legally accountable for their actions, making it essential for them to adhere to the fiduciary duties responsible for managing the estate prudently.
The Importance of Estate Planning in Colorado
Estate planning is an essential aspect of preparing for the future, and it plays a key role in streamlining the probate process in Colorado. By having a well-documented will or establishing a trust, individuals can express their wishes regarding the distribution of their assets clearly and legally. This forethought can help minimize potential disputes among heirs, decrease the likelihood of lengthy court proceedings, and ultimately save time and money in probate court.
Moreover, proper estate planning may allow individuals to leverage non-probate options that can expedite the transfer of assets to beneficiaries. Essential strategies include naming beneficiaries on accounts, establishing joint ownership of property, and using payable-on-death designations. By taking these proactive steps, residents of Colorado can significantly mitigate the challenges that often arise during the probate process and ensure a smooth transition of their estate to their loved ones.
Contesting a Will in Colorado
In certain situations, a will may be contested in Colorado, leading to potential delays in the probate process. Grounds for contesting a will can include claims that the decedent was not of sound mind when the will was created, that they were unduly influenced by another party, or that the will was not executed according to Colorado laws. Understanding the legal grounds for contesting a will is crucial for beneficiaries who feel that the distribution of the estate may not align with the decedent’s true intentions.
Contesting a will can involve legal proceedings that require evidence and possibly testimony from witnesses. This process can be complex and emotionally taxing for the heirs and may prolong the time it takes to resolve the estate. Furthermore, if a contest is unsuccessful, the contestant could be responsible for paying the legal fees associated with the proceedings, underscoring the importance of careful consideration before pursuing this route.
Can I Receive My Colorado Inheritance Sooner?
Knowing you are entitled to an inheritance can be a real game-changer. But what if you need the money now? When you can’t wait months or years for your inheritance to clear probate, Rockpoint Probate Funding has the solution.
Our probate funding program provides access to your inheritance while your case is still pending. While some call it an “inheritance loan” or a “probate loan,” it differs from traditional loans in one very important way. If you don’t receive your inheritance, you don’t have to repay the funds!
Access Cash Quickly With Rockpoint Probate Funding
Why choose probate loans with Rockpoint Probate Funding?
- Quick service: We can evaluate your application and process your funds in as little as one day.
- Risk-free cash: You owe nothing if your inheritance doesn’t come through.
- No credit check: Unlike traditional loans, probate funding does not require a credit check or income information.
- No restrictions: You can spend your money however you would like.
- Private transactions: We don’t share your private information with third parties.
Contact Rockpoint Probate Funding at (888) 263-8588 to learn how to access your inheritance funds without waiting for Colorado probate.
