In Colorado, administering a small estate is relatively simple. The successor (or her agent) simply fills out a small estate affidavit, signs the affidavit in front of a notary, and then presents it to any person or entity controlling the estate’s assets. Nothing is filed with the court and no one is name as the personal representative. This is an entirely unsupervised process meant to simplify the administration of small estates.
There are a few limitations to using a small estate affidavit:
- The probate estate’s value cannot exceed $64,000 (the small estate limit for 2016).
- The affidavit cannot be used to transfer real estate.
- The affidavit cannot be used if a personal representative has already been appointed or appointment is pending.
Let’s break it down with a few examples.
Scenario #1:
Marsha dies is Colorado owning the following assets:
- A checking account with $10,000
- A savings account with $15,000
- Personal household effects worth $2,000
- A car worth $7,000
Under Scenario #1, Marsha’s estate can be administered using a small estate affidavit. The total value of the probate estate is $34,000, well below the small estate limit, and it does not include any real estate.
Scenario #2:
Marsha dies in Colorado owning the following assets:
- A checking account with $10,000
- A savings account with $15,000
- Personal household effects worth $2,000
- A car worth $7,000
- A townhome worth $250,000
Under Scenario #2, Marsha’s estate cannot be administered using a small estate affidavit. Not only does it exceed the small estate limit, but it also includes real property. As such, this estate must go through probate.
Scenario #3:
Marsha dies in Colorado owning the following assets:
- A checking account with $10,000
- A savings account with $15,000
- Personal household effects worth $2,000
- A car worth $7,000
- A $200,000 life insurance policy naming her daughter as the beneficiary
Under Scenario #3, Marsha’s estate can be administered using a small estate affidavit. While her overall estate is valued at $234,000, the life insurance policy is a non-probate asset. (Learn more about non-probate assets here.) Since her probate estate is valued at $34,000 and does not include any real estate, it qualifies for small estate administration.
Have questions about small estate administration, or probate in general? Schedule a no obligation consultation – contact us here or call 720-588-9830.