Creditors and Probate

One of the key elements of probate proceedings is dealing with a decedent’s creditors before distributing the assets of the estate. While this can be a relatively easy and minor process in some cases, in more complex situations, it can take some time to resolve creditors’ claims against an estate.

At Colorado Estate Matters, Ltd., our Denver estate planning lawyers are skilled at helping people effectively handle the process with creditors and probate. We ultimately assist them in getting through the probate proceedings with minimal hassle, headaches, and costs. We have the experience and knowledge you can depend on when it comes to resolving a probate case as favorably and efficiently as possible.

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The Process of Dealing with Creditors during Probate

Colorado Probate Code outlines the process for dealing with creditors during probate proceedings. According to this law, the personal representative of an estate (i.e., the person who is overseeing the administration of the estate and the probate process) must make an effort to notify a decedent’s creditors about the death and handle claims that creditors may have against the estate.

When notifying creditors, the personal representative is responsible for:

Publishing a Notice to Creditors in newspapers where the decedent lived and where the probate is taking place
Making sure that this Notice is published at least once a week for three consecutive weeks
Ensuring that the probate case remains open for at least 6 months (if the notice is published) or at least one year (if the notice is not published) from the date of the death.

Once the required time frame has expired, the personal representative will have the tasks of:

Determining the legitimacy of each creditor’s claims
Consolidating and potentially liquidating any estate assets to make funds available to pay the legitimate claims from creditors
Paying the creditors.

Dealing with creditors during probate can be as complicated as it may be stressful, so it’s always best that you work with the Denver probate lawyers at Colorado Estate Matters, Ltd. to ensure that:

No costly mistakes are made when dealing with creditors.
These matters are handled appropriately and with the utmost care.

Denver Probate Attorneys at Colorado Estate Matters, Ltd.

When you are dealing with creditors during probate, don’t hesitate to contact the Denver probate lawyers at Colorado Estate Matters, Ltd.. We are experienced at representing our clients’ interests throughout the probate process in order to help them obtain the best possible outcomes to these proceedings. This means that our clients can always rely on us to provide them with:

Personalized attention
Competent, caring and professional representation
The highest quality of legal services at affordable rates.

Our Denver probate lawyers are skilled at using a variety of traditional and innovative strategies to successfully deal with creditors and resolve probate proceedings. Our primary goal is to help our clients get through probate with minimal costs and complications so they can focus on their future.

Contact Us

To minimize the potential headaches and costs of dealing with the process of creditors and probate, contact the Denver probate lawyers at Colorado Estate Matters, Ltd. You can learn more about our array of probate legal services by meeting with us for an initial consultation. To schedule this meeting, call us at (303) 713-9147 or email us using our convenient online contact form.

From our offices in Denver, we serve clients throughout the southwest and southeast Metro Area, including (but not limited to) people in Highlands Ranch, Littleton, Castle Rock, Parker, Aurora, Greenwood Village, Englewood, Centennial, Wheat Ridge, Golden and Arvada.

What is probate in Colorado?

Probate in Colorado is the legal process by which a deceased person’s assets are distributed and their debts are paid under court supervision.

When is probate necessary in Colorado?

Probate is typically required when a person dies with assets solely in their name, and those assets exceed a certain value, or there’s any real estate. The threshold amount changes over time, so checking the current limits is essential.

How do I start the probate process in Colorado?

To initiate probate in Colorado, you need to determine if formal probate is required, and then file an Application or a Petition (as well as the necessary ancillary documents) with the appropriate court, depending on the circumstances.

What assets are subject to probate in Colorado?

Generally, assets that are solely owned by the deceased, such as real estate, bank accounts, and personal property, are subject to probate. Jointly owned assets with rights of survivorship, assets held in a trust, and assets with designated beneficiaries typically bypass probate.

How long does the probate process take in Colorado?

The duration of probate in Colorado can vary depending on the complexity of the estate and any disputes that may arise. Often it takes a year or more to complete.

What are the costs associated with probate in Colorado?

Probate costs in Colorado can include court fees, attorney fees, personal representative fees, and other administrative expenses. These costs can vary based on the size and complexity of the estate.

Can I avoid probate in Colorado?

Yes, there are strategies to avoid probate in Colorado, such as creating a revocable living trust, using beneficiary designations on assets like life insurance policies and retirement accounts, and jointly owning property with rights of survivorship.

What are the rights and responsibilities of a personal representative in Colorado?

The personal representative (executor or administrator) is responsible for managing the estate, paying certain debts and taxes, and distributing assets to beneficiaries in accordance with the law and the deceased person’s will (if one exists).

How are disputes handled in Colorado probate cases?

Disputes in Colorado probate cases can be resolved through mediation, negotiation, or litigation in court if necessary. Common disputes may involve the validity of the will, claims by creditors, or disagreements among beneficiaries.

Is estate tax a concern in Colorado probate?

Colorado does not have a state-level estate tax, but federal estate tax may apply to larger estates. It’s important to consider federal tax implications when dealing with an estate.

Is estate tax a concern in Colorado probate?

Colorado does not have a state-level estate tax, but federal estate tax may apply to larger estates. It’s important to consider federal tax implications when dealing with an estate.
It’s essential to consult with an attorney or legal professional experienced in Colorado probate law to get accurate and up-to-date information and guidance on your probate matter.

Creditors and Probate

The Process of Dealing with Creditors during Probate

Denver Probate Attorneys at Colorado Estate Matters, Ltd.

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