What are the beneficiary designation rules in Colorado?

Beneficiary designations on life insurance, retirement accounts, POD bank accounts, and TOD brokerage accounts determine who receives those assets at death (C.R.S. § 15-10-201(22); § 15-11-706; § 15-11-803; § 15-11-804; § 15-11-1201 et seq.; § 15-17-101(2)(e); § 13-54-102(1)(s)). These designations override the terms of a will or trust. Outdated designations remain in effect regardless of other estate planning documents.

Does divorce revoke beneficiary designations in Colorado?

Yes. Colorado automatically revokes an ex-spouse as beneficiary upon divorce for the following asset types: life insurance, retirement accounts, pod accounts, tod accounts, annuities (C.R.S. § 15-11-804). However, ERISA-governed employer plans such as 401(k)s and pensions are subject to federal law and must be updated manually regardless of state rules.

Are Beneficiary Designations Protected in Colorado?

Check how divorce, creditors, and state laws affect your life insurance, retirement accounts, and other beneficiary designations.

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This tool provides general information about state beneficiary designation laws. It does not constitute legal advice. ERISA-governed plans are subject to federal law which may differ from state law. Consult a licensed attorney for advice specific to your situation.Data verified 2026-07-13

Frequently Asked Questions

Beneficiary designations on life insurance, retirement accounts, POD bank accounts, and TOD brokerage accounts determine who receives those assets at death. These designations override the terms of a will or trust. Outdated designations remain in effect regardless of other estate planning documents.

Yes. Colorado automatically revokes an ex-spouse as beneficiary upon divorce for the following asset types: life insurance, retirement accounts, pod accounts, tod accounts, annuities. However, ERISA-governed employer plans such as 401(k)s and pensions are subject to federal law and must be updated manually regardless of state rules.

Colorado provides partial creditor protection for inherited IRAs. The level of protection may depend on whether the IRA was inherited from a spouse or non-spouse, and whether the case is in state or federal court.

Yes. The federal Employee Retirement Income Security Act (ERISA) preempts state law for employer-sponsored plans such as 401(k)s, pensions, and group life insurance. Even if Colorado automatically revokes an ex-spouse upon divorce, ERISA-governed plans follow the designation on file with the plan administrator. The Supreme Court confirmed this in Egelhoff v. Egelhoff (2001) and Kennedy v. Plan Administrator (2009).

When no valid beneficiary designation exists, the asset typically passes to the account holder's estate and is distributed through probate under Colorado's intestacy laws. This can result in delays, additional costs, and the assets going to someone other than the intended recipient. See who inherits with the Colorado inheritance calculator.

No. Colorado does not default to per stirpes for beneficiary designations. If a named beneficiary dies before the account holder, the share typically lapses unless the designation explicitly includes per stirpes language or names contingent beneficiaries.

Beneficiary Rules in Colorado

Divorce in Colorado triggers automatic revocation of ex-spouse beneficiary designations (Yes). Federal ERISA plans are exempt from this rule, so 401(k)s and employer pensions require a manual change. The life insurance calculator recalculates coverage needs after a divorce.

Colorado is not a community property state, so spousal consent for beneficiary changes on state-governed accounts is generally not required. However, federal ERISA rules still require spousal consent for qualified retirement plans such as 401(k)s and pensions. The inheritance calculator shows how Colorado divides assets when no valid designation exists.

Colorado provides Partial creditor protection creditor protection for inherited IRAs. State law varies widely on this issue since the Supreme Court's 2014 Clark v. Rameker decision.

The per stirpes default in Colorado is No. Per stirpes means that if a named beneficiary dies before the account holder, the share passes to that beneficiary's descendants. Without per stirpes language or contingent beneficiaries, a lapsed designation routes assets to the estate. The Colorado life insurance calculator estimates coverage based on current family needs.

SimplyTrust Editorial·Updated July 13, 2026

Legal Sources

Data sourced from Colorado statutes and official state code. How we research.

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