What Taxes Apply to My Inheritance in Colorado, and When Will I Receive It?
Colorado imposes no inheritance or estate taxNo Colorado estate or inheritance tax is payable. The Colorado Estate Tax Law (C.R.S. § 39-23.5-103) imposes a tax equal to the federal credit for state death taxes under IRC § 2011 (C.R.S. § 39-23.5-102(6)); that federal credit was eliminated, so the tax computes to $0 and no Colorado estate tax filing is required for deaths after December 31, 2004 — and independently, C.R.S. § 39-23.5-107(3) provides that "[n]o Colorado return need be filed if the gross estate or generation-skipping transfer does not require the filing of a federal return." The statute remains on the books rather than repealed — a "pick-up" tax that would revive if Congress restored the federal credit. Colorado replaced its 1927 inheritance tax with the estate tax in 1980 and has no inheritance tax.Verified Sep 15, 2026View source; probate assets arrive when the estate closes, 4 months to 6 months for a simple estate.
No. Colorado imposes no state inheritance tax, so a beneficiary owes no state tax on what they receive. An inherited retirement account (a 401(k) or a traditional IRA) is still taxed as income when it is withdrawn, and the federal estate tax reaches an estate above the federal exemption.
No. The IRS does not treat inherited money, real estate or personal items as income, so a beneficiary in Colorado does not report them on a federal return when received. Two exceptions: an inherited retirement account (a 401(k) or a traditional IRA) is taxed as ordinary income as it is withdrawn, and earnings after the date of death are taxable. Inherited property takes a stepped-up basis, its value on the date of death, for any later capital gain.
It depends on how the asset passes. Life insurance and a retirement account with a named beneficiary pay in a few weeks once the claim is filed. Trust distributions in Colorado follow the trustee's administration rather than a court timeline. A probate estate in Colorado takes 6 months to 9 months on average, and longer with a dispute or unusual assets.
Colorado gives creditors 4 monthsC.R.S. § 15-12-801(1) (4 months from first publication); § 15-12-803(1)(a)(III) (one-year-from-death outer bar)Verified Sep 8, 2026View source to file a claim against the estate. The executor does not make final distributions until the period has run, which is what keeps a beneficiary from inheriting an unpaid debt along with the asset.
In Colorado, estates with personal property of $88,000C.R.S. § 15-12-1201Verified Sep 8, 2026View source or less skip probate with the Collection of Personal Property by AffidavitC.R.S. § 15-12-1201Verified Sep 8, 2026View source, 10 daysC.R.S. § 15-12-1201Verified Sep 8, 2026View source after death. The Collection of Personal Property by Affidavit is presented directly to the bank, employer, or other holder of the property — it is not filed with a court. The waiting period is 10 days after death. For a beneficiary that means the asset arrives in weeks rather than the months a probate estate takes.
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Inheritance
Inheriting assets brings responsibility. How to manage, protect, and plan for inherited wealth — including tax implications and trust options.
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Death of a Parent
A step-by-step guide to what happens after a parent dies: the documents to find, the certificates to order, and whether probate is even required.
Learn moreForms for Planning and Settling an Estate in Colorado
Free Colorado forms for planning an estate or settling one: a will, trust, powers of attorney, TOD deed, and the probate forms an executor files.
Digital Assets Recovery Letter
Prepare a letter requesting a deceased person's online accounts, points, and balances from the program that holds them.
Petition for Probate and Letters
In Colorado, the petition asks the District Court of the county where the decedent lived to appoint the personal representative, whose authority is proved by Letters Testamentary or Letters of Administration; an informal (registrar) track is availableC.R.S. § 15-12-301Verified Sep 8, 2026View source.
Notice to Creditors
In Colorado, the notice to creditors is published for 3C.R.S. §§ 15-12-801, 15-12-803, 15-12-805, 15-12-806Verified Oct 18, 2026View source weeks in a local newspaper, and creditors have 4 monthsC.R.S. § 15-12-801(1) (4 months from first publication); § 15-12-803(1)(a)(III) (one-year-from-death outer bar)Verified Sep 8, 2026View source from first publication to present claims.
Renunciation of Executor
In Colorado, a person named as personal representative may renounce the right to serveC.R.S. § 15-12-203(3)Verified Sep 22, 2026View source before anyone is appointed.
Affidavit of Heirship
In Colorado, heirs put their identity on the land records with a recorded affidavit of facts affecting title that states who the heirs areC.R.S. §§ 38-35-113, 38-35-109; 15-12-1302 to 15-12-1306; 42-6-114Verified Sep 24, 2026View source; once recorded it is prima facie evidence of the facts stated.
Small Estate Affidavit
In Colorado, the Collection of Personal Property by AffidavitC.R.S. § 15-12-1201Verified Sep 8, 2026View source covers estates with personal property of $88,000C.R.S. § 15-12-1201Verified Sep 8, 2026View source or less, 10 daysC.R.S. § 15-12-1201Verified Sep 8, 2026View source after death, presented directly to the bank or other holder, not filed with a court.
Estate Inventory
In Colorado, the personal representative files the estate inventory within 90 daysC.R.S. § 15-12-706Verified Sep 15, 2026View source of appointment.
Estate Closing
In Colorado, the personal representative is discharged automatically once the statutory period runsC.R.S. § 15-12-1003(2), § 15-12-1005Verified Sep 15, 2026View source, and a final accounting is required.
Tools for Planning and Settling an Estate in Colorado
Free calculators and checklists for planning or settling an estate in Colorado: will and trust costs, probate, executor pay, and inheritance taxes.
How Much Are Estate & Inheritance Taxes?
Colorado levies no estate or inheritance taxNo Colorado estate or inheritance tax is payable. The Colorado Estate Tax Law (C.R.S. § 39-23.5-103) imposes a tax equal to the federal credit for state death taxes under IRC § 2011 (C.R.S. § 39-23.5-102(6)); that federal credit was eliminated, so the tax computes to $0 and no Colorado estate tax filing is required for deaths after December 31, 2004 — and independently, C.R.S. § 39-23.5-107(3) provides that "[n]o Colorado return need be filed if the gross estate or generation-skipping transfer does not require the filing of a federal return." The statute remains on the books rather than repealed — a "pick-up" tax that would revive if Congress restored the federal credit. Colorado replaced its 1927 inheritance tax with the estate tax in 1980 and has no inheritance tax.Verified Sep 15, 2026View source; only the federal estate tax applies above $15,000,00026 USC 2001(c), 2010; P.L. 119-21 §70106Verified Sep 15, 2026View source.
How Does Step-Up in Basis Work?
Inherited assets in Colorado take a basis reset to fair market value on the date of death26 USC § 1014Verified Sep 15, 2026View source, and the gain on a later sale faces ordinary income tax at the state's regular ratesC.R.S. § 39-22-518 — "Tax modification for net capital gains" (as narrowed by HB21-1311 § 8, eff. TY2022)Verified Sep 15, 2026View source.
What Are the Estate Laws in My State?
Probate on a $500,000 estate in Colorado costs an estimated $26,082C.R.S. § 15-10-602 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source and takes 4 months to 6 months for a simple estate, with attorney fees of typically 2%C.R.S. § 15-10-602 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source to 3.1%C.R.S. § 15-10-602 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source of the estate. Estates under $88,000C.R.S. § 15-12-1201Verified Sep 8, 2026View source can use a small-estate procedure instead.
When Do I Have to Withdraw an Inherited IRA?
See which federal withdrawal rules apply to an inherited IRA, Roth IRA, or employer plan, the deadline year, and the missed-withdrawal tax.
How Much Does Probate Cost?
Probate on a $500,000 estate in Colorado costs an estimated $26,082C.R.S. § 15-10-602 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source. Attorney fees run 2%C.R.S. § 15-10-602 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source to 3.1%C.R.S. § 15-10-602 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source of the estate under a reasonable-compensation standard.
Who Inherits Without a Will?
Without a will in Colorado, a surviving spouse takes the entire estateC.R.S. § 15-11-102Verified Sep 10, 2026View source when every child of either spouse is a child of both, and descendants divide what passes to them per capita at each generationC.R.S. §§ 15-11-103(3), 15-11-106Verified Sep 10, 2026View source.
How Many Death Certificates Do I Need?
In Colorado, certified death certificates come from the Colorado Department of Public Health and Environment - Vital RecordsColorado Department of Public Health and Environment - Vital RecordsVerified Oct 15, 2026View source; the first copy costs $25Colorado Department of Public Health and Environment - Vital RecordsVerified Oct 15, 2026View source, additional copies $20Colorado Department of Public Health and Environment - Vital RecordsVerified Oct 15, 2026View source each.
Do I Need Probate?
In Colorado, estates with personal property of $88,000C.R.S. § 15-12-1201Verified Sep 8, 2026View source or less skip probate with the Collection of Personal Property by AffidavitC.R.S. § 15-12-1201Verified Sep 8, 2026View source, 10 daysC.R.S. § 15-12-1201Verified Sep 8, 2026View source after death.
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Colorado Estate Planning Resources
In-depth guides covering Colorado probate laws, trust requirements, and estate planning strategies.