Are You Familiar With Colorado’s Probate Process?
The probate process in Colorado applies a different procedure for an inheritance or estate based on the circumstances. All of it serves a common goal: preventing fraud after the death of a person.
For instance, an estate planning attorney in Denver can help in resolving a dispute. They would then exclude it from an informal probate process and therefore would require court involvement. Read on to find out more.
In case a person died without leaving a will, the court has the authority to appoint an executor or personal representative. The spouse or an adult child of the deceased person normally takes on this role. Their responsibilities include gathering the assets and settling tax and credit payments, prior to distributing the wealth to other heirs or beneficiaries.
An estate should reach the minimum threshold in the state to be supervised by the court. The informal probate process applies only if an estate falls below the threshold and has no reported disputes from creditors or beneficiaries. On the other hand, assets such as joint-tenancy homes do not require a probate process under Colorado law. In case the joint owner dies, the surviving co-owner will automatically own the entire property.
A residential property serves as one of the most common inheritance for beneficiaries. Financial planners suggested that the heirs have to wait for at least two months before planning a long-term decision. The death of a loved one can be a stressful experience, which is why deciding on what to do with an inheritance immediately can be driven by emotions.
If you plan to sell the property, there is a certain tax incentive based on your taxpayer income rate. For those who plan to live in the house, the tax treatment changes if you reside there for at least two years.
Being familiar with the probate process and knowing when to settle an inheritance is important, yet it’s better to grieve first for your loss before thinking about your gain.