What Happens When an Estate Is Insolvent in Colorado?
Enter the estate's assets and the claims in each class of Colorado's payment order to see which claims are paid in full, which are paid in part, and which go unpaid, along with when the executor is personally liable.
Frequently Asked Questions
An estate is insolvent when the claims against it exceed the assets available to pay them. Colorado then pays the claims in 10 classes, in the order its statute sets, and the classes at the end of the order are the ones left unpaid when the money runs outC.R.S. § 15-12-805Verified Sep 23, 2026View source.
1. Property held by decedent as fiduciary or trusteeC.R.S. § 15-12-805(1)(a)Verified Sep 23, 2026View source. 2. Costs and expenses of administrationC.R.S. § 15-12-805(1)(b)Verified Sep 23, 2026View source. 3. Reasonable funeral and final disposition expensesC.R.S. § 15-12-805(1)(c)Verified Sep 23, 2026View source. 4. Debts and taxes with federal preferenceC.R.S. § 15-12-805(1)(d)Verified Sep 23, 2026View source. 5. Last illness medical/hospital expensesC.R.S. § 15-12-805(1)(e)Verified Sep 23, 2026View source. 6. Debts and taxes with state preferenceC.R.S. § 15-12-805(1)(f)Verified Sep 23, 2026View source. 7. Department of Health Care Policy and Financing claim for medical assistance paid to or for the decedentC.R.S. § 15-12-805(1)(f.5)Verified Sep 23, 2026View source. 8. Human services or early childhood department claims for excess public assistance, including child care assistance, for which the recipient was ineligibleC.R.S. § 15-12-805(1)(f.7)Verified Sep 23, 2026View source. 9. Unpaid and future child support obligationsC.R.S. § 15-12-805(1)(g)Verified Sep 23, 2026View source. 10. All other claimsC.R.S. § 15-12-805(1)(h)Verified Sep 23, 2026View source.
In proportion to their amounts: each claim in the class receives the same share of what it is owedC.R.S. § 15-12-805(2)Verified Sep 23, 2026View source.
A personal representative is not personally liable for the decedent's debtsC.R.S. § 15-12-808(1)-(3)Verified Sep 22, 2026View source. A personal representative who pays a later class before an earlier class is paid in full is personally liableC.R.S. § 15-12-807(2)(b)Verified Sep 22, 2026View source. A personal representative who distributes property to heirs while claims are unpaid is personally liableC.R.S. § 15-12-807(2)(a); § 15-12-1003(1)(a); § 15-12-1004; § 15-12-1006(1)Verified Sep 22, 2026View source.
A person named in the will files a written renunciation with the court (C.R.S. § 15-12-203(3)). A notary is not required. Renunciation of Executor for Colorado
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