PROBATE

Probate is the process of transferring ownership of property, paying bills and handling the other final affairs of a person following his or her death. This process includes identifying and inventorying property, paying creditors and distributing property to heirs.  The person in charge of administering an estate – also known as a personal representative or executor – can be held personally liable for mistakes or mismanagement. A mistake in filing an income tax return, for example, can come back to haunt a personal representative up to seven years after the fact. But with the guidance of a qualified lawyer, probate can be concluded relatively quickly and inexpensively. In addition, legal expenses associated with administering an estate can be paid with the proceeds from the estate. Probate offers an advantage, too; once the process is completed correctly, it forever bars creditors from making additional claims.

In Colorado, a number of processes are available for settling an estate:

• A small estate affidavit offers a simple and straightforward way to settle estates involving less than $50,000 worth of personal property and no real property. A sworn statement is created identifying the beneficiaries of the estate. That statement then is used to collect and distribute property.
  
  
• The vast majority of probates in Colorado are handled under an administrative proceeding called an informal probate. A court file is opened and a judge appointed. But the judge seldom becomes involved unless a beneficiary or creditor objects to the manner in which the estate is administered or the process takes longer than a year. If an objection is raised, an informal probate automatically becomes a formal probate.
  
  
• A formal probate and the actions of a personal representative are subject to the supervision of a judge. Consequently, the process takes longer and can be more expensive. A formal probate usually isn’t necessary unless beneficiaries raise objections, the validity or terms of the will are challenged, the personal representative doesn’t fulfill his or her responsibilities or there are insufficient assets to pay creditors.