What is the Probate Process in Colorado?
In Colorado, the probate process involves several legal steps to ensure that a deceased person’s assets are properly distributed among heirs. The court oversees the probate process to confirm that all assets are accounted for, the deceased’s debts are paid, and that property is dispersed according to a will or Colorado probate law.
If you have questions about Colorado’s probate process and what you can do to make it easier for your children after your death, contact Brighter Day Law today to schedule a consultation so we can answer your questions.
What are the Different Types of Probate in Colorado?
Colorado has several types of probate, which depend greatly on the specific facts involved in each case. An estate planning attorney can advise on the best solution for your family’s legal needs. It is worth noting that because everyone’s personal and financial situation is different, any outcomes will also vary.
Formal Probate
If the deceased left no will, the probate court may order that their estate must go through the formal probate process. During the formal probate process, the court will hold hearings to resolve disputes that may arise regarding the management and distribution of the estate. Heirs and other beneficiaries are allowed to appear at these hearings to respond or object to the decisions being made. Because the formal probate process involves more court involvement, it is generally more expensive and time-consuming than informal probate.
Informal Probate
Informal probate is a suitable option if the probate court does not believe that there will be any legal disputes over the distribution of the estate. Informal probate is generally less time-consuming than formal probate and does not involve significant court oversight. If the deceased left a will that is not contested or there is a pre-appointed executor or personal representative ready to manage the estate, the court will most likely pursue informal probate
How Can I Help My Children Avoid Probate Issues?
There are several legal options available to help your children avoid probate. Even if you have a will, your estate will have to go through probate unless you choose alternative estate planning strategies.
Living Trusts
Living trusts are some of the most common options that many Coloradans use to help their children avoid potential probate issues. You can transfer the assets you wish to pass on to your heirs into a living trust that a trustee manages. You can choose to manage the trust yourself or entrust the task to someone you trust. After death, the successor trustee will distribute the assets contained within the trust to your beneficiaries.
Joint Tenancy with Right of Survivorship
Under joint tenancy, each “tenant” owns an equal share of the property. After the death of one tenant, their share passes automatically to the surviving tenant(s). This option is ideal for those who want their loved ones to be able to quickly access financial resources, as it avoids the probate process.
POD/TOD Designations
Payable on Death (POD) designations can be used on bank accounts, allowing beneficiaries to receive funds and avoid the probate process. Transfer on Death (TOD) designations are used on stocks, bonds, and real estate and ensure that ownership is passed smoothly to the beneficiary, also avoiding the probate process.
It is essential to remember that everyone’s situation is unique, and all legal options should be thoroughly explored with the guidance of a knowledgeable estate planning attorney. A skilled attorney will professionally evaluate your needs and determine a legal strategy that protects your children from having to deal with probate issues.
How is an Estate Divided Among Children if Their Parent Does Not Leave a Will?
Many Coloradans are under the mistaken impression that if they die intestate, meaning they do not leave a will, their immediate family will automatically inherit their assets. Unfortunately, in many situations, this could not be further from the truth. As a parent, you want to be sure that you are responsibly preparing for the future and that your children will have quick access to the financial resources they need. However, having a will does not necessarily help your children avoid probate entirely, but it can lessen many of the legal implications of when someone dies intestate.
Colorado law stipulates that if a parent dies without leaving a will, their estate will be divided equally among their children if there is no surviving spouse. If there is a surviving spouse and children who were a product of the marriage, the spouse generally inherits the entire estate. In cases where the surviving spouse and children are from other relationships, the spouse will receive the first $150,000 of the estate and one-half of the remaining balance. The rest will be divided equally among the children.
Due to the complexities of Colorado’s probate laws, it is always best to consult with a wills lawyer who can help you determine what solutions fit your needs.
Why is it Best to Hire an Estate Planning Attorney to Help Me Plan for the Future?
No one likes to contemplate life for their family after they pass away. Nevertheless, planning for your family can help to ease the financial and emotional burden that often accompanies probate issues.
Brighter Day Law is dedicated to helping families with their estate planning needs, enabling them to face the future confidently. Our estate planning attorneys have a proven reputation for creating customized estate plans that withstand legal scrutiny and provide clients with the peace of mind they deserve.
Contact our law office today at 719-733-9129 to schedule a consultation with an experienced attorney who will be happy to answer your questions.