Fort Collins Colorado Law Firm

When a loved one dies, one of the most important parts of settling their estate involves dealing with any outstanding debts. Creditors don’t disappear when someone passes—there’s a legal process that allows them to request payment from the estate. If you’re involved in handling a loved one’s affairs, it’s important to know what steps to take, what deadlines matter, and how to respond to creditor claims appropriately.

Identify Known And Potential Creditors

Before we can move forward with any payments, we need to understand what debts exist. That usually starts with reviewing the decedent’s mail, email accounts, financial records, and credit reports. We’re looking for credit cards, medical bills, personal loans, car payments, or any other liabilities the person may have had.

Once we gather this information, we can begin to build a list of known creditors. In some cases, there may also be creditors we aren’t aware of yet. That’s where public notice comes in—posting notice to creditors gives them a formal opportunity to submit claims to the estate.

Publish Notice To Creditors

Under Colorado probate law, the personal representative of the estate is typically required to publish a notice to creditors in a local newspaper. This serves as a public alert that the estate is being administered and gives creditors a set amount of time—usually four months—to file claims.

This notice helps limit the time creditors have to act. If a creditor fails to come forward within the allowed time frame, their right to collect may be cut off. As your Colorado probate lawyer, we assist clients in making sure these steps are completed accurately and on schedule.

Review And Evaluate Claims

When creditor claims come in, we don’t automatically pay them. Each claim needs to be reviewed to confirm that it’s valid and that the amount is correct. Some debts may already have been paid, others may not be enforceable, and in some cases, the estate may not be responsible for certain types of debt.

If we believe a claim is incorrect or invalid, the personal representative can object. This may lead to further discussion or even court involvement, depending on how the creditor responds. Keeping records of all notices, claims, and responses is important in case questions arise later.

Pay Debts In The Right Order

Estate debts must be paid in a specific legal order. For example, administrative costs such as court fees or attorney fees often come first. After that, funeral expenses, taxes, and secured debts like mortgages or car loans are given priority. Unsecured debts, like credit cards or personal loans, are usually paid last.

If there aren’t enough assets to cover everything, the estate may be considered insolvent. In that case, we follow the legal order of payment, and some creditors may not receive the full amount owed—or anything at all. Heirs are not personally responsible for the decedent’s debts unless they co-signed or are otherwise legally obligated.

Let Us Help You Manage The Process

Settling debts after someone passes away is a key part of probate and should be handled with care. It’s about following legal procedures, protecting the estate, and making sure everything is accounted for. At W.B. Moore Law, we help personal representatives and families understand how to approach this part of the process with confidence. If you’re unsure what to do next or want to make sure everything is handled the right way, contact us today to schedule a consultation. We’re here to help you move forward with peace of mind.

When someone passes away, one of the first legal processes that may follow is probate. It’s a court-supervised procedure that helps identify, value, and distribute the decedent’s assets. Not all property will go through probate, though. Some items pass outside the court process, while others must be reviewed and managed by the probate court. For families trying to settle a loved one’s estate, understanding which assets are subject to probate helps avoid confusion and delays.

Property Held In The Decedent’s Name Only

Assets titled solely in the deceased person’s name are the most common to go through probate. This includes bank accounts, real estate, vehicles, and investment accounts that do not have a joint owner or named beneficiary. Since there is no automatic legal transfer to another person, the court steps in to authorize the transfer.

For example, if someone owned a house in their name without joint tenancy or a trust, that home will typically be subject to probate. The same goes for an individual checking account with no payable-on-death (POD) designation. In these cases, the probate court oversees how the property is passed on to heirs or beneficiaries under the will or, if there is no will, under state law.

Personal Property Without Documentation

Items like furniture, clothing, jewelry, and tools are usually considered personal property. These aren’t registered with titles or ownership records, which means they can’t be transferred without probate unless their total value is low enough to qualify for a simplified process. In Colorado, small estates may be settled through an affidavit if the total value of probate assets is under a certain amount, but larger estates will need full probate proceedings.

It’s helpful to create a clear inventory of these items during the estate administration process. This not only keeps things organized but also supports fair distribution among heirs.

Business Interests And Sole Proprietorships

If the deceased owned a business as a sole proprietor, that business becomes part of the probate estate. The assets of the business—such as equipment, accounts receivable, or inventory—must be evaluated and distributed according to the terms of the will or through the intestate succession process if no will exists.

This type of asset often requires legal guidance to handle properly. As your Colorado probate lawyer, we often work with families to manage and transfer business interests in a way that keeps operations running smoothly or winds down the business responsibly.

Property Without A Valid Beneficiary Designation

Some financial accounts and insurance policies allow you to name a beneficiary. When that’s done correctly, these assets can transfer directly to the named person without probate. However, if the beneficiary designation is missing, outdated, or names someone who is no longer living, those assets may be pulled into the probate estate.

It’s a good practice to regularly review beneficiary designations and update them as needed. When they aren’t current, it can create delays in distributing assets that would otherwise transfer automatically.

We Can Help You Make The Right Moves

Probate doesn’t apply to every asset, but it often plays a key role in settling an estate. Knowing what goes through the process helps us prepare and handle the estate properly. At W.B. Moore Law, we work with families across Colorado to address each part of the probate process clearly and efficiently. If you need guidance on which assets require court involvement or how to move forward after a loved one’s passing, contact us today. We’re here to help you take the right steps with confidence.

When a loved one passes away, there are a lot of things we have to manage, often all at once. One of the most urgent financial questions we face is what to do about their mortgage. If the decedent owned a home with an outstanding mortgage, that debt doesn’t simply go away. It needs to be handled properly to protect the home and comply with legal obligations. For many families, this becomes a pressing concern early in the estate administration process.

Determine Who Is Responsible For The Mortgage

The first step is to identify who is legally responsible for continuing the mortgage payments. Generally, the estate of the deceased person is responsible for paying any debts, including the mortgage. If the property is left to an heir or beneficiary, that person may take over the payments to keep the home. Sometimes, a surviving spouse or co-owner may already be on the mortgage and can continue payments without making changes.

In other cases, the executor or personal representative appointed by the court during probate may need to make payments using estate funds. This helps prevent foreclosure and preserves the home’s value while the estate is being settled.

Review The Mortgage Terms And Status

We also need to look closely at the mortgage loan documents. Some loans include a due-on-sale clause, which could trigger a full repayment if ownership changes. However, federal law often protects family members and heirs from having to pay off the loan immediately, especially if they choose to live in the home and continue making payments.

It’s important to determine how much is owed, whether the loan is current, and what options are available to keep the account in good standing. If the loan is behind on payments, the lender may allow a grace period or a payment plan to catch up, especially when they know the estate is in probate.

Keep The Lender Informed

Communicating with the mortgage lender is key. Once the personal representative or family members identify themselves, the lender should be informed of the death and who is authorized to discuss the account. Lenders may request a death certificate, letters of appointment, or other documents to verify who can act on behalf of the estate.

During this process, it helps to keep records of all conversations and copies of any documents sent or received. This creates a clear timeline and protects us if any disputes arise later about the loan status or payment history.

Make Payments During Probate

Mortgage payments should continue throughout the probate process to avoid default or foreclosure. The estate’s personal representative may use estate funds to make these payments. If funds are limited, the representative might need to sell other assets or consult the court for permission to liquidate property.

In some situations, the person inheriting the home may choose to refinance the loan into their name or assume the existing mortgage if the lender allows. Either way, it’s critical that payments don’t lapse during this transitional time.

Final Transfer Of Property

Once probate is complete, the property can be legally transferred to the heir or beneficiary. If the new owner wants to keep the home, they’ll need to continue paying the mortgage or refinance it. If they don’t want the home or can’t afford it, selling the property is often the best solution. Sale proceeds can then be used to pay off the mortgage, and any remaining funds go to the estate.

As your Colorado probate lawyer, we often guide families through these steps, helping them stay compliant with the law while honoring the decedent’s wishes.

We’re Here To Help You Move Forward

Dealing with a mortgage after someone passes away can feel overwhelming, especially when you’re already managing grief and legal paperwork. At W.B. Moore Law, we help families figure out the best way to manage the home and any related debts during probate. Whether you’re an executor trying to keep up with payments or a beneficiary who wants to keep the home, we’re here to help you make informed, timely decisions. Reach out to us today to get the legal support you need.