Colorado Inheritance Laws

We spend a lifetime growing our assets and cherishing our family heirlooms with the hopes of passing a legacy on to our loved ones. Unfortunately, many Colorado residents fail to prepare for the unthinkable and pass on without leaving a will or an estate plan. When this occurs, Colorado’s complex inheritance laws determine what happens to the decedent’s assets and property.

Creating a valid will is the best way to ensure that portions of your property go to those specific family members you’d like to inherit. If you haven’t yet created an estate plan or will, It’s important to know how Colorado’s inheritance laws for intestacy—dying without a will—determines where your property goes after your death.

What Happens If You Die Without a Will In Colorado?

When you write out a last will and testament, you leave thoughtful legacies to loved ones with personal meaning behind every bequest. If you don’t prepare a valid will, the state’s intestacy laws take effect to determine who takes possession of the assets you leave behind. Every state has intestacy laws, including Colorado. If Colorado determines that an estate is left intestate, the state’s laws take effect, beginning with probate. 

Understanding the Probate Process In Colorado

Probate is a court supervision process that occurs for all estates, whether the decedent leaves a will or dies without a will or estate plan. Probate protects a decedent’s estate from creditors and other outside forces and ensures that the wishes of the decedent are fully carried out. If a person dies without a valid will, the probate process ensures that the state’s laws for intestacy are correctly followed. The following three types of probate exist in Colorado, depending on the circumstances and the size of the estate:

• Small estate: this applies to estates valued under $82,000 and is the simplest and least costly or time-consuming form of probate
• Informal probate occurs when it’s unlikely that any heir will contest the results of the state’s intestacy laws so the court’s role is minimal
• Formal probate: this process may take over 6 months and involves significant court intervention to ensure that the state’s laws are carried out fairly even when contested by one or more family members

The probate process requires the court to identify the decedent’s heirs and then distribute the estate according to the intestacy laws.

Divorce and Inheritance Laws in Colorado

Divorce can significantly impact inheritance rights under Colorado law. In most cases, once a divorce is finalized, any provisions in a will or estate plan designating an ex-spouse as a beneficiary are automatically revoked. This means that unless an individual updates their estate plan to specify otherwise, an ex-spouse will typically no longer inherit assets.

For individuals going through a divorce, it’s essential to update estate planning documents, such as wills, trusts, and beneficiary designations on accounts like life insurance policies and retirement plans. Failing to do so could result in unintended consequences, such as assets being distributed according to outdated documents.

It’s also important to note that marital property divided during divorce proceedings is not subject to inheritance laws. Instead, it is distributed according to the divorce settlement. However, any remaining separate property may still be passed to heirs, including children, according to the terms of a will or Colorado’s intestacy laws if no will exists.

If someone passes away during an ongoing divorce, the legal proceedings may complicate the inheritance process. In such cases, the spouse may still retain certain inheritance rights until the divorce is finalized. This makes it critical to work with a Fort Collins divorce attorney to navigate these overlapping legal issues.

The Role of Spouses in Colorado Inheritance Law

Under Colorado inheritance law, spouses have the first right of inheritance when a person dies without a will designating specific bequests to other family members. A decedent’s surviving spouse is entitled to inherit their entire estate if the decedent only had children with that spouse and has no living parents. 

If the surviving spouse has children from a previous marriage or relationship, they receive the first $225,000 of their deceased spouse’s estate and then half of the balance remaining. This helps to ensure that the decedent’s property remains in their family line. 

If the decedent has other children from a past marriage or relationship, the spouse receives only the first $150,000 of their estate and then half of the remaining balance. 

If the decedent has no surviving children but leaves behind surviving parents, the spouse receives the first $300,000 of the estate and then ¾ of the remaining balance.

As the above rules of inheritance in Colorado show, spouses have a robust right to inheritance under Colorado’s inheritance laws. If a decedent dies without leaving behind a living spouse or children but has surviving parents, the parents inherit their estate. If they leave only siblings, the siblings inherit.

Children In Colorado’s Inheritance Laws

When a deceased individual and their spouse only have children together, the children do not inherit property or assets under Colorado’s inheritance laws. If a surviving spouse has children from a past relationship, the decedent’s biological children receive the remainder of the decedent’s estate after the spouse receives $225,000 and half of the estate’s remaining balance. If the decedent has children from another marriage, they gain the remainder of the decedent’s estate after the spouse receives the first $150,000 and half of the remaining balance of the estate. 

Colorado does not differentiate between a decedent’s biological and adopted children. Adopted children have the same inheritance rights as biological children. This includes adopted stepchildren but does not include foster children who were not formally adopted. If a child conceived before the death is born after a parent’s death, they have the same right to inheritance as other heirs.

If a decedent is unmarried when they die, their children receive the entire estate.

Are There Exceptions to Colorado’s Inheritance Laws?

Some assets do not have to go through the probate process. For example, a life insurance policy with a named beneficiary goes directly to that beneficiary. Other examples of a decedent’s assets that aren’t distributed through the state’s intestacy laws include 401k accounts, IRAs, pay-on-death bank accounts, real estate property with a transfer-on-death deed, a vehicle with a transfer-on-death title, and any property placed into a living trust. These accounts have predetermined beneficiaries who automatically receive the funds when a decedent passes away. Any jointly owned property goes to the surviving co-owner.

How Can a Colorado Family Lawyer Help?

Colorado’s inheritance laws are complex and challenging to navigate, especially during a time of grief and sorrow. An experienced Fort Collins family attorney can help identify heirs and ensure that the decedent’s assets are distributed according to the state’s statutes for inheritance. An attorney guides survivors through the court process and formally administers the estate to prevent errors or delays.

Because what happens to your hard-earned assets and the property in your estate depends on whether or not you leave a will, you can avoid your loved ones having to navigate Colorado’s inheritance laws by meeting with an experienced attorney to create an enforceable estate plan to enact upon your passing.

Whether you’d like to create a will or you’re dealing with the loss of a loved one who died without a will, call The Law Offices of Stephen Vertucci, LLC. We are ready to assist you in protecting your estate and your loved one’s inheritance rights.