Navigating Probate Administration: What You Need To Know

Probate administration in Colorado is simpler than in many other parts of the country. The Centennial State is one of nearly 20 states that have implemented their own form of the Uniform Probate Code, a set of probate-related rules and regulations established by the Uniform Law Commission in 1969.

Still, working your way through probate or estate administration can cause stress, especially when you’re mourning the loss of a loved one. There are also many instances in which families end up having to spend months in probate court to navigate their way through.

Did you just lose a family member who left behind an estate containing cash, real estate, vehicles, and other assets? Meeting with an experienced Denver probate lawyer can help you make sense of the situation, but you should also have a general idea of what’s going on.

This blog post identifies certain important concepts that you need to know to navigate probate administration in the coming weeks.

What Is Probate Administration?

Probate administration serves two key purposes:

1. It enables a family to implement a loved one’s final wishes as expressed in a Last Will and Testament.
2. It ensures assets held by the deceased loved one will land in the hands of the right heirs and beneficiaries.

In most cases, a decedent will leave behind a Last Will and Testament that appoints a personal representative to lead the way during probate administration. If there is no Last Will and Testament, Colorado’s Probate Code identifies a certain order of persons to act as personal representative. This person will take charge of the estate, meaning they are responsible for paying off any outstanding debts a person left behind and distributing the remaining assets that a person designated for family members, friends, charitable organizations, etc.

A personal representative also needs to gather a person’s recent income tax returns and take care of their federal or state tax obligations. A personal representative’s responsibilities will change on a case-by-case basis depending on the circumstances surrounding a person’s death and what they left behind as part of their estate.

Is Probate Administration Required?

Probate is only necessary if one of two prongs of the following test are met. First, did the decedent own any real property in his or her sole name? Second, is the aggregate value of all other property owned by the decedent in his or her sole name without any beneficiary designations more than $80,000.00? If the answer to either of these questions is “yes,” then a probate proceeding is necessary in Colorado.

If the decedent did not own any real property and left only minor financial assets, it is possible to transfer title of those assets to the loved one’s heirs by completing a small estate affidavit.

How Does Probate Administration Work?

If your family has the opportunity to avoid going through probate administration, consider taking it. A 2021 report revealed that about 40% of those who find themselves in the middle of probate struggle with mental health issues.

Otherwise, an effective way to make it through without enduring too much stress and anxiety is by familiarizing yourself with this process from start to finish. If you are expecting to be named as personal representative, below are the essential steps of setting up and administering an estate:

1. Obtain a death certificate and locate the decedent’s estate planning documents.
2. Deliver the decedent’s Last Will and Testament to the court associated with the county where the decedent was domiciled at death.
3. Complete paperwork to request the court appoint you as personal representative.
4. Notify beneficiaries and creditors about a loved one’s death.
5. Create a list of loved one’s assets and procure appraisals for them.
6. Pay off creditors who file rightful claims against a loved one’s estate.
7. If necessary, file any income tax returns and pay off a loved one’s taxes.
8. Distribute a loved one’s assets according to their will or in accordance with Colorado’s intestate succession laws.
9. Close the estate.

Some of these steps, such as presenting a loved one’s will to a probate court, won’t take much time. Others, such as giving creditors time to file claims against a loved one’s estate, can take over a year. This is a big part of why probate can take so long.

Why Is Probate Administration Important?

Probate administration is important for several reasons. First and foremost, it reduces the chances of theft or fraud impacting the distribution of a loved one’s assets.

This is just one of the many benefits of making your way through probate with patience and careful attention to detail. Here are several other reasons to consider:

• It prevents your family from having to foot the bill for unnecessary debts following a loved one’s death.
• It helps your family avoid arguments over a loved one’s assets.
• It allows your family to honor your loved one’s final wishes accordingly.

Whether you’re a surviving spouse grieving the loss of your husband or wife or the child of a parent who just passed away, you might find probate administration will play a large role in the healing process.

How Much Does Probate Administration Cost?

Probate administration does come at a cost, all of which can be paid by the estate should it have the necessary assets. In addition to fees incurred to file paperwork with the courts, the estate will likely also need to pay the personal representative for his or her time spent administering the estate and any lawyer fees that may also be incurred. Additionally, other professionals, such as accountants, may also be needed.

You shouldn’t let these fees stop you from following the proper steps. But ensure they’re on your radar so they don’t catch you off guard and risk making a stressful situation even more so.

Need a Probate Lawyer in Denver? Contact Us for Help

Many families dread the thought of probate administration, but when you have the right probate attorney in Colorado on your side, it is a more pleasant experience for everyone involved. Thomas N. Scheffel & Associates, P.C., can supply you with the legal services you need for both probate with high-net-worth estates and probate for small estates.

Reach out to us at 303-759-5937 for assistance during estate administration. Our seasoned legal team is standing by to discuss your needs and, should you choose our services, handle the logistics of your probate administration from start to finish.