Settling Small Estates (CO)

Requirements

To use the small estate process, the following conditions must be true:

• The estate must have a gross value <$82K (for years prior to 2024, see Adjusted CO Estate Limits)
• At least 10 days have passed since the death
• No petition has already been made to the court to officially appoint a personal representative

In determining the gross value of the estate, you should value assets as of the date of death, and ignore any unsecured debts. Do not include any assets that would not normally go through probate, such as community property with right of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.

Process

To use the small estate process:

1. Prepare a Small Estate Affidavit (Form JDF-999), have it notarized, and attach a copy of the death certificate
2. Obtain possession of estate assets by presenting the affidavit to the current custodians
3. Settle the estate in the normal way (pay debts, distribute remaining assets)
4. If you are distributing real estate, submit a copy of the affidavit to the county clerk and recorder

Estate Settlement Considerations

Before paying any debts or making any distributions, be sure to account for any CO Family Entitlements, which typically have priority over everything except expenses of the last illness, funeral charges, and any estate administrations expenses.

Estate debts have priority over most distributions in turn, so you should arrange to have all debts resolved before distributing assets. Unpaid estate creditors have the right to sue heirs for the value of any distributions received using the approaches described on this page.

If estate solvency is uncertain, an executor should consider going through official probate for the increased creditor protection it offers. Alternately, such uncertainty can sometimes persuade creditors to forgive a portion of debts, since they will want to avoid legal expenses as well, and may prefer to get something rather than nothing.

See also Making Distributions.

Requirements

You can use summary administration (also known as simplified probate) if it appears that the value of the entire estate does not exceed the sum total of the following:

• Estate personal property (i.e., everything except real estate)
• Family and exempt property allowances
• Estate administration expenses
• Reasonable funeral expenses
• Reasonable and necessary medical expenses of the last illness

In determining the value of the estate, you should value assets as of the date of death. Ignore any unsecured debts (such as credit cards), but do account for secured debts such as mortgages (i.e., if a house is worth $150K and has a $130K mortgage, the house would contribute $20K to the estate value). Do not include any assets that would not normally go through probate, such as community property with right of survivorship, assets with named beneficiaries (e.g., 401Ks, life insurance policies), and other standard probate exclusions.

Process

To settle an estate via summary administration:

1. Submit an Application for Informal Probate (Form JDF-910) to the court
2. Upon approval, the court will issue your "Letters", which you can use to obtain possession of estate assets
3. Settle the estate in the normal way, allocating resources to the list above in priority order
4. File a Closing Statement (Form JDF-966 SC) with the court, and send required notices (see form)