No Will? Understanding How Colorado Intestate Laws Distribute Assets

DWquale on January 15, 2025

When someone passes away without a will in Colorado, their assets are distributed according to the state’s intestate succession laws. These laws determine who inherits property and in what proportion. While intestate laws provide a legal fallback, they may not align with your personal wishes, leading to stress, confusion, and potential family disputes. This guide explains how intestate succession works in Colorado, the special circumstances to consider, and why estate planning is essential to avoid these complications.

How Intestate Succession Works in Colorado

Intestate succession in Colorado follows a clear hierarchy based on family relationships:

  1. Surviving Spouse and Children:
    • If the deceased leaves a surviving spouse and children, the estate is typically divided between them.
    • If the children are from a previous relationship, the surviving spouse’s share may be reduced.
    • Example: The spouse may receive a fixed amount (e.g., the first $300,000) and a portion of the remaining assets, while the rest is divided equally among the children.
  2. No Spouse or Children:
    • If no spouse or children exist, the estate is distributed to the deceased’s closest relatives:
      Parents inherit the estate if they are alive.
    • If parents are deceased, the estate passes to siblings in equal shares.
    • If siblings have passed away, their children (the deceased’s nieces or nephews) inherit the estate.
  3. No Living Relatives:
    • If no relatives can be located, the estate becomes subject to escheatment, where the assets revert to the state of Colorado. This is a last resort when no legal heirs exist.

Special Circumstances to Consider

  1. Adopted Children:
    • Legally adopted children have the same inheritance rights as biological children under Colorado law.
  2. Stepchildren:
    • Stepchildren are not automatically included in intestate succession unless they have been legally adopted. This can create challenges in blended families, underscoring the importance of a will.
  3. Unmarried Partners:
    • Colorado intestate laws do not recognize unmarried partners, regardless of the relationship’s length. Without an estate plan, assets will pass to blood relatives instead.
  4. Half-Siblings:
    • Half-siblings inherit as full siblings under Colorado intestate succession laws, ensuring they are treated equally in inheritance.

Why Intestate Succession Can Be Problematic

While intestate laws offer a legal framework, they may not reflect your personal intentions. Key issues include:

  • Delayed Distribution: Probate for intestate estates often takes longer due to legal formalities and family disputes.
  • Increased Costs: Without a clear plan, legal and court fees can significantly reduce the estate’s value.
  • Family Disputes: Rigid intestate laws may lead to disagreements, particularly in blended families or complex relationships.

How Estate Planning Can Help

Proper estate planning allows you to control how your assets are distributed and prevent the challenges of intestate succession. Key benefits include:

  • Customizing Your Plan: Decide who inherits your property, including stepchildren, unmarried partners, or charities.
  • Avoiding Delays: Streamline the probate process with a clear will or trust.
  • Reducing Legal Costs: Minimize court involvement and legal fees.
  • Protecting Family Relationships: Prevent disputes by providing clear instructions for asset distribution.

Intestate succession laws in Colorado serve as a safety net when someone passes away without a will. However, they often fail to reflect individual wishes and can create stress, delays, and legal complications for families. By taking proactive steps—such as creating a will, establishing trusts, or updating beneficiary designations—you can protect your loved ones and ensure your assets are distributed according to your preferences.

For personalized guidance on estate planning, consult an experienced Colorado probate attorney or contact us at Colorado Estate Services to secure your legacy and bring peace of mind to your family.

Free Time-of-Death Professional Appraisal for Your Probate Real Estate with Colorado Estate Services

ColoradoEstateServices on January 14, 2025

Get a Free Time-of-Death Appraisal for Your Probate Estate with Colorado Estate Services

Managing a probate estate is often an overwhelming process, especially when real estate is involved. At Colorado Estate Services, we understand the complexities of this journey, and we are here to simplify it. That’s why we’re excited to announce our new promotion: we will cover the cost of a time-of-death appraisal (up to $650) for estates needing one—making your probate process more manageable and cost-effective.

What Is a Time-of-Death Appraisal?

A time-of-death appraisal is a critical step in settling a probate estate that includes real estate. It provides an official valuation of the property as of the decedent’s date of passing, which is often required for tax purposes and determining the fair market value for estate distribution. Without an accurate appraisal, executors and personal representatives (PRs) may face delays, disputes, or complications when settling the estate.

In Colorado, this requirement applies to many probate cases. Partnering with experienced appraisers ensures that you have accurate documentation to meet legal requirements and avoid unnecessary stress.

How Our Free Appraisal Promotion Works

To ease the financial burden for estates and personal representatives, Colorado Estate Services will cover the cost of a time-of-death appraisal. Here’s how it works:

  • Eligibility: The promotion is available to all estates and PRs located from Colorado Springs to Fort Collins, including the Front Range and foothills of Colorado.
  • Conditions: Once a listing agreement is signed to sell the property with Colorado Estate Services, we will pay up to $650 directly to the appraiser.
  • Coverage: We’re working with a network of trusted local appraisers to ensure prompt and professional service for your estate.

Trusted Appraisal Partners

We’re proud to partner with some of the best appraisers in the region to provide top-quality service to our clients. These trusted professionals include:

Their expertise ensures accurate and timely time of death appraisals, providing peace of mind during the probate process.

Disclaimer: This Free Appraisal Promotion Covers Up to $650 appraisal cost

While we’re excited to offer this service at no cost to our clients, please note that the promotion covers up to $650 of the appraisal fee. If the appraisal cost exceeds this amount, the estate will be responsible for the difference. This ensures transparency and maintains the highest level of service for our clients.

Why Choose Colorado Estate Services?

Colorado Estate Services is one of the top-selling real estate firms in the state, specializing in probate and estate sales. With years of expertise, we’ve built a reputation for:

  • Streamlined Sales: From quick off-market transactions to achieving top dollar on MLS listings, we tailor the process to meet your estate’s unique needs.
  • Comprehensive Support: We handle everything from coordinating clean-outs and repairs to remote closings, allowing PRs to manage the estate without unnecessary travel or stress.
  • Trusted Partners: Our network includes appraisers, attorneys, and other professionals to ensure every step of the probate process is handled efficiently and effectively.

How This Promotion Benefits You

Probate estates often face tight timelines and budget constraints. By covering part of the appraisal cost, we aim to:

  • Provide PR’s a professional appraisal necessary for real estate included in Colorado estates.
  • Reduce upfront expenses for PRs and heirs.
  • Provide peace of mind with professional, accurate appraisals.
  • Ensure a seamless transition to the next steps of selling the property.
  • Help the estate and us determine a listing price of the home.

Act Now: Simplify Your Probate Process

If you’re a personal representative or an estate administrator handling a probate case in Colorado, take advantage of this limited-time promotion to save money and simplify the process. Contact us today to learn more about how we can assist with your appraisal needs and property sale.

At Colorado Estate Services, we’re committed to making probate as stress-free as possible while maximizing the value of estate assets. Let’s work together to make this challenging time easier for you and your family.

Contact us today to get started and claim your free appraisal (up to $650 value)!

If you have any questions regarding the probate process, we’re here to help. Visit our Contact Us page for our emails and phone numbers.

For our free downloadable probate guide for Colorado please visit this PAGE.

How Mediation Helps Resolve Colorado Probate Disputes Quickly and Affordably

DWquale on January 9, 2025

Probate disputes can place immense strain on families, delaying the settlement of an estate and leading to costly litigation. Whether disagreements arise over asset distribution, executor decisions, or the validity of a will, mediation offers a practical and cost-effective alternative to court battles. This guide explains how mediation works in Colorado probate cases, its benefits, and the step-by-step process to resolve disputes amicably.

Common Probate Disputes

Probate disputes often arise from:

  1. Contesting a Will:
    Disagreements regarding the validity of a will, such as claims of undue influence, fraud, or lack of testamentary capacity.
  2. Asset Distribution:
    Conflicts over who inherits specific assets, the value of items, or disputes about fairness among beneficiaries.
  3. Executor Mismanagement:
    Allegations that the executor mishandled estate funds, failed to communicate with beneficiaries, or acted unfairly.
  4. Creditor Claims:
    Disputes regarding outstanding debts or creditor priorities can delay estate resolution and reduce the estate’s value.

How Mediation Works in Colorado Probate

Mediation is a structured process involving a neutral third-party mediator who facilitates communication and negotiation between disputing parties. Unlike litigation, mediation encourages cooperation and allows for flexible, mutually agreeable solutions.

Key Features of Mediation:

  • Neutral Mediator: An unbiased professional guides the conversation without taking sides.
  • Confidential Process: Discussions remain private, unlike public probate court proceedings.
  • Collaborative Focus: Parties work together to reach a fair compromise without court-imposed rulings.

Benefits of Mediation in Probate Disputes

Mediation offers several advantages over traditional litigation, including:

  • Cost-Effective:
    Mediation is significantly less expensive than prolonged court trials, as legal fees and court costs can quickly escalate.
  • Faster Resolution:
    Probate disputes that might take months or years in court can often be resolved in a matter of weeks through mediation.
  • Preserves Family Relationships:
    Litigation can deepen divisions among family members. Mediation encourages cooperation, helping preserve relationships.
  • Flexible Solutions:
    Unlike court rulings, mediation allows parties to craft creative and customized solutions tailored to their unique circumstances.

Steps in the Mediation Process

Here’s a step-by-step breakdown of the mediation process for probate disputes in Colorado:

  • Pre-Mediation Preparation:
    • Gather all relevant documents, such as wills, asset inventories, and executor reports.
    • Identify the key issues to address and clarify goals for resolution.
  • Mediation Sessions:
    • The mediator facilitates discussions, ensuring all parties have a chance to voice their concerns.
    • Parties collaborate to identify common ground and work toward a mutually agreeable solution.
  • Agreement Documentation:
    • Once a resolution is reached, the mediator drafts a legally binding agreement outlining the terms.
    • This agreement is submitted to the probate court for approval, ensuring it complies with Colorado probate laws.

Why Choose Mediation for Probate Disputes?

Mediation is not only faster and more cost-effective but also less adversarial than litigation. By fostering open communication and collaboration, families can avoid the emotional toll of courtroom battles while ensuring the estate is settled efficiently and fairly.


If you’re facing probate disputes in Colorado, mediation can provide a powerful, amicable solution that saves time, money, and relationships. If you’re looking for a qualified mediator in your area, you can visit the the county court’s mediation resource page to find professionals who specialize in probate disputes.

For guidance through the mediation process, consult a probate mediation specialist or Colorado Estate Services for expert support.

Special Considerations for Probate with Minor Beneficiaries in Colorado

DWquale on December 18, 2024

When minor children are beneficiaries in probate, additional safeguards are required to protect their interests. In Colorado, probate proceedings involving minors often involve court oversight and the establishment of trusts or guardianships. This blog highlights key considerations and best practices for managing estates with minor beneficiaries.

Unique Challenges of Minor Beneficiaries

  • Legal Restrictions:
    Minors cannot directly inherit or manage significant assets, requiring alternative arrangements.
  • Guardianship Needs:
    If parents are deceased, guardians must be appointed to care for the minors.
  • Financial Oversight:
    Courts often oversee financial arrangements to ensure the minors’ inheritance is used appropriately.


Strategies to Protect Minor Beneficiaries

  • Establish a Testamentary Trust:
    Create a trust within your will to hold and manage assets until the beneficiaries reach adulthood.
  • Appoint a Guardian:
    Clearly designate a guardian for the minors in your will to avoid court-appointed decisions.
  • Choose a Responsible Trustee:
    Select a trustworthy individual or institution to manage the trust assets on behalf of the minors.
  • Include Age-Based Distributions:
    Structure the trust to distribute funds at specific ages (e.g., 21, 25, 30) to promote financial responsibility.
  • Use Custodial Accounts:
    Consider Uniform Transfers to Minors Act (UTMA) accounts for smaller inheritances, allowing a custodian to manage funds until the minor turns 21.


Court Involvement in Probate
In cases where no trust or guardian is designated, Colorado probate courts may impose guardianships or conservatorships to manage the minors’ assets and personal care. This can lead to delays and additional legal expenses.

Planning ahead is essential when minors are potential beneficiaries in probate. By establishing trusts, appointing guardians, and outlining clear instructions, you can protect their financial future and ensure their needs are met. Work with an estate planning professional to create a comprehensive plan tailored to your family’s circumstances.

If you have any questions regarding the probate process, we’re here to help. Visit our Contact Us page for our emails and phone numbers.

How to Manage Digital Assets During the Probate Process

DWquale on December 16, 2024

Digital assets, such as online accounts, cryptocurrencies, and cloud-based files, are a growing component of modern estates. Yet, they are often overlooked during probate, leading to challenges in accessing, valuating, and transferring them to beneficiaries. Proper management of digital assets is essential during the probate process in Colorado to ensure they are handled legally and effectively.

This guide explores what digital assets are, common challenges in managing them, and steps to include them in your estate plan.

What Are Digital Assets? Digital assets encompass a wide range of items, including:

  • Online Accounts: Email accounts, social media platforms like Facebook and Instagram, and subscription services such as Netflix or Spotify.
  • Cryptocurrencies: Bitcoin, Ethereum, and other digital currencies held in digital wallets or on crypto exchanges.
  • Cloud Storage: Documents, photos, and videos saved in services like Google Drive, Dropbox, or iCloud.
  • Digital Media: Purchased eBooks, music, and online gaming accounts.

Understanding the full scope of digital assets is the first step in managing them during the probate process.

Challenges in Managing Digital Assets

  • Access Issues: Many platforms require usernames, passwords, or two-factor authentication for access. Executors often face difficulties if login credentials are unavailable.
  • Legal Hurdles: Terms of service agreements and privacy laws like the Computer Fraud and Abuse Act can restrict executors from accessing digital accounts without proper documentation.
  • Valuation: Cryptocurrencies and NFTs (non-fungible tokens) are subject to market fluctuations, making accurate valuation difficult. Digital assets also lack the physical presence of traditional assets, adding another layer of complexity.

Steps to Manage Digital Assets

  1. Create an Inventory: List all digital assets, including:
    • Account names.
    • URLs for login pages.
    • Usernames and passwords (stored securely).
  2. Secure Access: Work with a probate attorney to obtain the necessary permissions or court orders to access accounts. Ensure the will or trust includes provisions for digital assets to avoid legal hurdles.
  3. Valuate Digital Assets: For cryptocurrencies and other high-value items, hire professional appraisers familiar with digital asset markets. Accurate valuation is critical for tax and distribution purposes.
  4. Distribute or Close Accounts: Follow platform-specific procedures for transferring ownership to beneficiaries or closing accounts. Examples include transferring crypto wallets or managing digital subscriptions.

Best Practices for Including Digital Assets in Estate Plans

  • Use a Password Manager
    A password manager securely stores credentials and can be shared with a trusted executor. Tools like LastPass or Dashlane can streamline access for executors.
  • Include Digital Assets in Your Will
    Clearly outline how digital assets should be managed, including who should inherit them and how accounts should be handled.
  • Appoint a Digital Executor
    Designate a digital executor familiar with technology and digital platforms to manage these assets during probate.

Managing digital assets during probate is a critical yet often overlooked aspect of estate planning. By taking proactive steps—such as creating a detailed inventory, securing legal access, and updating your estate plan—you can simplify the process and ensure your digital legacy is protected.

If you’re navigating probate in Colorado, consult a probate attorney or reach out to Colorado Estate Services for expert guidance in managing digital assets and ensuring a seamless transition for your beneficiaries.

Safeguard Your Family’s Well-Being: Vital and Revealing Questions to Ask Home Care Providers

DWquale on December 11, 2024

Choosing the right home care service for your loved one is a significant decision that directly affects their comfort, safety, and well-being. Because so many options exist, being thorough and asking the right questions are crucial for making the best choice. Conducting proper research will give you confidence that your family member receives the care they deserve.

To simplify your search, we’ve put together a list of essential questions to ask when evaluating a home care provider. These questions cover everything from caregiver qualifications to emergency protocols, which ensures a well-rounded understanding of each agency’s services and policies.

  1. Are Your Caregivers Bonded and Insured?
    Check if the agency provides liability coverage and insurance for their caregivers. This ensures your peace of mind, especially in case of accidents or incidents.
  2. Are Caregivers Contracted or Full Employees?
    Knowing whether caregivers are contracted or full employees significantly impacts the quality and consistency of care. Typically, full-time employees receive more training and benefits.
  3. What Is the Cost of Your Services?
    Request a detailed breakdown of costs. Be sure to include hourly rates, minimum hour requirements, and any potential extra charges for specialized care.
  4. What Are Your Full Range of Services?
    Make sure the agency can cater to all your loved one’s needs. For instance, they should provide personal care or housekeeping, depending on what your family member requires.
  5. What Is the Community’s Backup Plan for When Caregivers Call in Sick or Don’t Make It to Work?
    Understanding the agency’s contingency plan ensures uninterrupted care for your loved one. Ask how they handle last-minute schedule changes and whether substitute caregivers are readily available.
  6. Is Care Available 24/7?
    Clarify if the agency offers around-the-clock care. Additionally, ask how they handle urgent situations outside regular business hours.
  7. What Are the Minimum Hours of Care?
    Look into the minimum service requirements. For example, some agencies may only provide care for a certain number of hours per visit.
  8. What Is Your Procedure for Emergencies?
    It is crucial to understand emergency protocols. Make sure the agency has a comprehensive plan to address urgent situations effectively.
  9. How Are Problems Addressed and Resolved?
    Ask about the agency’s process for handling complaints and resolving issues. Having a clear and efficient system ensures quality care for your loved one.
  10. Who Do I Contact for Questions or Concerns?
    Identify who to contact for addressing requests, questions, or complaints. A direct point of contact makes communication seamless and effective.
  11. How Quickly Can Service Begin?
    Ask how soon care can be arranged after the initial consultation. This information helps you plan more effectively.

These are just 11 of the crucial questions to ask when choosing a home care provider, but there are many more to consider to ensure the best fit for your loved one. For a comprehensive list and personalized guidance, don’t hesitate to reach out to Kristine Verstraete (303-775-8276) or Marnie Biln (720-837-6306) at All About Seniors or connect with Colorado Estate Services.

Avoid Regrets: Questions to Ask a Senior Community First

DWquale on December 6, 2024

Choosing a senior community for a loved one is one of the most significant decisions families face. To ensure the best care and environment, it’s crucial to ask thoughtful, specific questions. Here are the essential inquiries to guide your search and give you peace of mind.

  1. What Type of Training Has the Staff Received?
    Understanding the training that staff undergo is vital. Inquire about specific certifications, ongoing education, and specialized training in conditions like dementia or Parkinson’s.
  2. Is the Focus on Person-Centered Care?
    A person-centered approach respects each resident’s individuality. Ask how the senior community personalizes care and whether they adapt strategies for different residents’ needs.
  3. What Are Your Staffing Ratios?
    Care quality often depends on how many caregivers are available per resident. Clarify the staffing ratios during the day and compare them with nighttime levels to gauge overall coverage.
  4. Staffing Differences: Day vs. Night
    Staffing often varies between day and night. Ensure there are enough qualified staff members to assist residents, especially those who may need frequent nighttime support.
  5. What Is the Procedure if Someone Falls?
    Falls are common in senior communities, so it’s crucial to understand how staff respond, including injury assessments, medical support, and communication with the family.
  6. Are Meals Included, and What About Dietary Needs?
    Ask about meal plans, dietary accommodations for health conditions, and if snacks are available between meals. Specialized diets should be supported seamlessly.
  7. Do You Accommodate Special Care Needs?
    Discuss specific needs like diabetic care, mobility assistance, or wandering behavior to ensure the community is well-equipped to handle these challenges.
  8. Is Housekeeping and Laundry Provided?
    Find out the frequency of housekeeping services and how often linens and personal laundry are changed to maintain cleanliness and comfort.
  9. What Does the Activity Program Look Like?
    Engagement and socialization are crucial for seniors. Review the calendar of events, therapy options, and whether activities align with your loved one’s interests.
  10. Are Therapy Services Available On-Site?
    Check for the availability of physical, speech, and occupational therapies. Having these services on-site is often more convenient and effective for residents.

These were only 10 of the many important questions to consider when choosing a senior community for your loved one. There are plenty more to discuss to ensure you’re making the best possible choice. To find out the rest and get expert guidance, reach out to Kristine Verstraete (303-775-8276) or Marnie Biln (720-837-6306) at All About Seniors or connect with Colorado Estate Services for personalized assistance.

The Ultimate Gift: Why Funeral Pre-Planning Matters for Your Loved Ones

DWquale on November 26, 2024

By making plans ahead of time you can alleviate the financial and emotional burden on the people who love you and prevent the chaos and conflict that often arise when people are grieving.

Plus, you get today’s pricing for services long in the future, avoiding the yearly inflation which, according to the national average, can be as high as 7-10%.

At Colorado Estate Services, we are proud to partner with Becky Davis of Stork-Morley Funeral Home in the Denver area to offer this important service.

What Does a Funeral Pre-Planner Do?

A funeral pre-planner, like Becky Davis, guides individuals and families through the process of arranging their final wishes. This includes:

  1. Understanding Personal Preferences: Pre-planners collaborate closely with clients to identify what matters most to them. These conversations often explore religious, cultural, ritual, and familial preferences, among other considerations. They are also dedicated to ensuring clients fully understand the implications of their choices, empowering them to make decisions that reflect their values and priorities.
  2. Selecting Options: Clients learn what choices are available to them and can choose based on their values and what is most important to them. Disposition options in Colorado include conventional burial, green (or natural) burial, cremation by fire, cremation by water, and natural organic reduction (human composting). Making this choice in advance ensures their wishes are honored.
  3. Financial Planning: Pre-planners help clients manage the costs of funeral services by offering prepayment options, locking in today’s prices, and avoiding future inflation. Planning long before services are needed is not only fiscally sound but a kindness to those left behind, sparing them from having to come up with funds in a very short timeframe.
  4. Coordinating Details: From music and readings to floral arrangements and casket selection, pre-planners help finalize every detail.
  5. Providing Peace of Mind: Having these plans in place brings comfort to clients knowing that their families will be better able to focus on grieving and healing when the time comes.

How Funeral Pre-Planning Works

  • Consultation: The process begins with a meeting between the client and the pre-planner to discuss options, wishes, values, and preferences.
  • Customized Plan Development: Once decisions have been made, the pre-planner creates a contract between the client and the funeral home, ensuring every detail aligns with the client’s vision.
  • Budget Review and Payment Options: The advance planner discusses prepayment options with the client creating a payment plan that works best for them. Once the decision is made, the funds are held in escrow with an insurance company, who then pays the funeral home directly at the time of need. This spares family from the added stress of coming up with payment on short notice.
  • Documenting the Plan: The finalized plan is documented and given to the family, along with the insurance paperwork, and copies are securely stored at the funeral home.
  • Ongoing Support: Plans can be adjusted over time to reflect changing circumstances (such as a move) or preferences.

Why Pre-Planning Matters

Funeral pre-planning is a gift to those you leave behind. It reduces the emotional and financial stress of making decisions during an already difficult time. With Becky Davis’s compassionate guidance, families in the Denver area can take proactive steps to ensure their final wishes are met, while sparing loved ones from these additional challenges.

At Colorado Estate Services, we believe in connecting our clients with trusted partners who can help them through all aspects of planning for the future. If you or a loved one is interested in learning more about funeral pre-planning, we encourage you to reach out to Becky Davis at Stork-Morley Funeral Home. Together, we can help you plan with confidence and peace of mind.

For more resources or referrals, contact Colorado Estate Services today.

Colorado Seniors: The Ultimate Guide to Home Buying with a Reverse Mortgage

ColoradoEstateServices on November 7, 2024

Buying a new home later in life comes with unique financial considerations, especially for individuals aged 62 or older who may not want the burden of a traditional mortgage payment. A Home Equity Conversion Mortgage (HECM) for Purchase—commonly known as a reverse mortgage—offers a strategic way for qualified buyers to finance a home purchase without monthly mortgage payments. At Colorado Estate Services, we’re now partnering with Certified Reverse Mortgage Professional Mark Smith from My True Mortgage to support clients considering this option. Here’s a detailed look at how it works, the potential benefits, and key considerations.

What Is a HECM for Purchase?

The HECM for Purchase is a type of reverse mortgage specifically designed to allow seniors to purchase a new primary residence. It enables eligible homeowners to fund part of the home purchase while keeping their cash flow available for other needs. Unlike a reverse mortgage refinance, which uses home equity as a source of income or funding, a HECM for Purchase applies home equity toward the purchase of a new property. This can be an ideal option for individuals looking to downsize, upsize, relocate, or simply move into a home that better suits their needs without committing to monthly mortgage payments.

How It Works

Here’s how a HECM for Purchase typically works:

  1. Eligibility Requirements: At least one borrower must be at least 62 years old for a married couple in Colorado, must pass financial assessment, must occupy the property as their primary residence at least 6 months out of the year, and have sufficient down payment funds. The property must also meet FHA appraisal standards.
  2. The Down Payment: Buyers need a significant down payment, and this will be determined by the age of the youngest borrower, the interest rate and the sales price. This can come from personal savings, proceeds from selling an existing home, or other assets. This upfront payment covers the remaining portion of the home’s purchase price not financed by the HECM loan.
  3. No Monthly Mortgage Payments: Once the loan is established, there are no required monthly mortgage payments, though homeowners must continue to pay property taxes, homeowners insurance, HOA and maintain the property. The loan balance (principal, interest, and fees) only becomes due when the homeowner sells the property, doesn’t occupy the property at least 6 months out of the year, or passes away.
  4. Loan Balance and Equity: The loan balance grows over time because no monthly payments are made, and interest accrues on the balance. However, the borrower’s heirs or estate can sell the home to pay off the loan or choose to refinance the loan into their name or repay it directly to retain ownership.


Benefits of a Reverse Mortgage for Purchase

  • No Monthly Mortgage Payment: With no required monthly payments, seniors can enjoy financial flexibility, which can be particularly valuable for those on a fixed income.
  • Downsize, Upsize or Relocate with Ease: The HECM for Purchase allows homeowners to buy a new, often more suitable property without draining savings or worrying about traditional loan terms.
  • Flexible Living Options: Seniors looking to relocate to warmer climates, closer to family, or to a community with supportive services may find this mortgage option beneficial, providing flexibility and financial relief in retirement.


Important Considerations and Limitations

  • Costs and Fees: HECMs have upfront fees, including FHA mortgage insurance, origination fees, and closing costs, which can be higher than traditional mortgages. It’s essential to factor in these costs when considering this type of loan.
  • Property Taxes, Insurance, and Maintenance: Even though there’s no monthly mortgage payment, homeowners must remain current on taxes, insurance, HOA, and upkeep, as failing to do so could lead to loan default.
  • Loan Balance and Home Equity Impact: Since the balance grows over time, heirs may inherit less equity in the property. If the home’s value has increased, there may still be equity remaining, but that will vary.


How Colorado Estate Services and Mark Smith at My True Mortgage Can Help

Mark Smith at My True Mortgage is a Certified Reverse Mortgage Professional (CRMP) and brings specialized knowledge in reverse mortgages and can guide you through assessing if this option is the right fit. By partnering with Mark, Colorado Estate Services can support clients with a comprehensive service, from understanding loan implications to ensuring a smooth home transition if selling a current home is part of the process. Together, we provide end-to-end assistance, whether that’s consulting on the financial aspects with Mark or handling the sale preparation and marketing through Colorado Estate Services.

For more information on reverse mortgages, visit Mark’s resource page at My True Mortgage  at http://www.mytruemortgage.com/msmith/ and complete the lets have a conversation tab, or reach out to Colorado Estate Services to discuss how this option could support your next real estate move. We’re here to provide guidance on every aspect of the process.

If you have any questions regarding the probate process, we’re here to help. Visit our Contact Us page for our emails and phone numbers.

Ancillary Probate in Colorado: What You Need to Know

ColoradoEstateServices on November 4, 2024

Ancillary probate can be crucial when a person owns property in a different state from where they lived at their time of passing. Here’s a more in-depth look at what ancillary probate is, why it may be necessary, and how Colorado Estate Services and Althaus Law can help manage this process.


What Is Ancillary Probate?

Probate is the legal process of distributing a deceased person’s assets, ensuring that debts are settled and property is either transferred to beneficiaries or sold. This process is usually initiated in the state where the deceased lived. However, when an individual owns property in another state—in this case, Colorado—a secondary, or *ancillary*, probate may be required to transfer or sell the property.


Examples of When Ancillary Probate Is Needed

  • The decedent’s primary residence was out of state, but they owned a vacation home, rental property, or other real estate in Colorado.
  • The property title is in the decedent’s name only, meaning it does not automatically pass to a joint owner or beneficiary.


The Steps of Ancillary Probate in Colorado

While ancillary probate sounds complex, it’s streamlined and typically does not require a full probate process in Colorado. Here’s how it works:

  1. Primary Probate: Begin by opening probate in the state where the decedent lived. This court process will establish the personal representative’s legal authority to manage the deceased’s assets.
  2. File Necessary Documents in Colorado: The representative files the original probate documents, along with additional paperwork specific to Colorado, in the county court where the property is located.
  3. Receive Authorization: Once the Colorado court has reviewed and approved these documents, it issues authorization (called “out-of-state letters”) that allows the representative to manage or sell the Colorado property. This could mean transferring the property to beneficiaries or preparing it for sale.
  4. Collaborating with Local Experts: Handling property in another state can be challenging. Working with Colorado-based experts, such as Althaus Law, helps ensure compliance with local probate laws. Althaus Law handles the legal steps efficiently, while Colorado Estate Services offers hands-on assistance with property preparation, clean-outs, and marketing for sale if needed.


Avoiding Ancillary Probate Through Proper Estate Planning

Probate—including ancillary probate—can often be avoided through comprehensive estate planning. By proactively addressing ownership and beneficiary designations, individuals can simplify asset transfers for their heirs. For instance:

  • Trusts: A trust can hold property, allowing it to bypass probate and transfer directly to beneficiaries upon death.
  • Joint Ownership: Jointly owned property typically passes automatically to the co-owner upon one owner’s death, avoiding probate.
  • Beneficiary Designations: Designating beneficiaries for specific assets or accounts can also streamline asset transfer.

These strategies can save time, reduce legal fees, and provide peace of mind for families.


How Colorado Estate Services and Althaus Law Partner to Support Families

Colorado Estate Services, in partnership with Althaus Law (Website), offers families a smooth and supportive experience throughout the ancillary probate process. Althaus Law’s expertise in probate law ensures that the necessary documents are filed accurately, while Colorado Estate Services focuses on preparing and selling estate properties as needed. This collaboration allows families to navigate the probate process efficiently, with the benefit of both legal and logistical support.

For more detailed information about ancillary probate or to explore how estate planning can help avoid probate in Colorado, contact Colorado Estate Services (Website) or Althaus Law. Whether you’re managing a loved one’s estate or planning ahead, we’re here to provide clarity and guidance.

If you have any questions regarding the probate process, we’re here to help. Visit our Contact Us page for our emails and phone numbers.