We often think of probate as this lengthy, expensive court process. And sometimes it is. But what happens when someone passes away without much to their name? Maybe they rented their home, had a modest checking account, and owned a 15-year-old car. Does their family still need to go through full probate?
The short answer is: probably not.
Colorado law recognizes that not every estate needs the same level of court supervision. When someone dies with very few assets, we have streamlined options that save time and money.
What Counts As A Small Estate?
In Colorado, a small estate is generally one where the total value of property subject to probate is $80,000 or less. This threshold was increased from $70,000 in recent years to account for inflation and changing asset values.
But here’s what matters: we’re only counting assets that would normally go through probate. This means we exclude things like:
- Life insurance policies with named beneficiaries
- Retirement accounts with beneficiary designations
- Jointly owned property that passes automatically to the surviving owner
- Payable-on-death bank accounts
- Transfer-on-death securities
So someone might have $150,000 in total assets but only $50,000 subject to probate. That person’s estate would qualify as a small estate.
The Collection By Affidavit Process
Colorado’s simplest option is called “collection by affidavit.” This allows heirs to collect certain property without opening a formal probate case at all. After someone dies, an heir or beneficiary can fill out a sworn affidavit stating specific facts about the decedent and their assets. They then present this affidavit to whoever holds the property (a bank, for example) and collect it directly.
Requirements for using this method:
- At least 10 days have passed since the death
- No petition for appointment of a personal representative is pending
- The value of the entire estate, less liens and encumbrances, doesn’t exceed $80,000
- The person claiming the property is entitled to it under the will or intestacy laws
This process is quick. We’re talking days or weeks, not months. And there’s no court filing required, which means no filing fees and minimal legal costs.
When You Need A Small Estate Proceeding
Sometimes the collection by affidavit won’t work. Maybe there’s real estate involved, or the estate is just slightly too large. That’s when we look at a formal small estate proceeding.
At W.B. Moore Law, we help families determine which path makes sense for their situation. A small estate proceeding still involves the court, but it’s faster and less formal than regular probate.
The personal representative (formerly called an executor) has fewer duties to fulfill. They don’t need to publish notice to creditors in a newspaper. They don’t file as many court documents. The whole process typically wraps up in a few months rather than a year or more.
What About Debts?
This is where things get real. Just because an estate is small doesn’t mean debts disappear.
Colorado law prioritizes how debts get paid. Funeral expenses come first, then administrative costs, then medical bills from the last illness, and so on down the line. If there isn’t enough money to pay everyone, some creditors simply won’t get paid.
Family members don’t inherit debt. If Dad died owing $20,000 on credit cards but only left behind $5,000 in assets, the credit card companies get what’s available and that’s it. The kids don’t become personally responsible for the remaining balance.
But this assumes the kids weren’t co-signers or joint account holders. That’s a different story.
Real Estate Complicates Things
A small estate with real property requires more attention. You can’t use a simple affidavit to transfer a house or land. Even if the property value is under the threshold, you’ll likely need to open a small estate proceeding to get a court order transferring title.
However, Colorado does have a simplified process for transferring real estate valued at $70,000 or less. This involves filing an affidavit with the court and recording it with the county clerk. It’s still more involved than personal property, but not as demanding as full probate.
The Personal Property Exception
Here’s something useful: certain personal property can pass without any probate process regardless of value. This includes items owned by the decedent that were registered in beneficiary form, like vehicles with designated beneficiaries.
Colorado also allows families to claim specific items of tangible personal property (furniture, jewelry, collections) up to $10,000 in value without opening probate. This helps when someone dies owning mainly personal effects rather than financial accounts.
Working With A Colorado Probate Lawyer
Even small estates can raise questions. What if siblings disagree about who gets what? What if you discover unexpected debts? What if the decedent owned property in multiple states?
A Colorado probate lawyer can walk you through your options and handle the paperwork correctly the first time. We’ve seen families try to navigate small estate procedures on their own, only to make mistakes that cost more to fix than hiring someone from the start would have cost.
Sometimes the process really is straightforward and you can handle it yourself with minimal guidance. Other times what looks simple becomes complicated fast.
When To Consider Your Options
Not every small estate needs legal help, but many benefit from it. If you’re dealing with a loved one’s passing and unsure whether their estate qualifies for simplified procedures, reaching out to our team can give you clarity. We’ll review the situation, explain what applies, and help you understand whether you need our services or can manage on your own. Either way, you’ll have the information you need to move forward with confidence.