What Happens When an Estate Is Insolvent in Colorado?
When an estate owes more than it holds, Colorado pays the claims in 10C.R.S. § 15-12-805Verified Sep 23, 2026View source classes in statutory order, beginning with property held by decedent as fiduciary or trustee.
An estate is insolvent when the claims against it exceed the assets available to pay them. Colorado then pays the claims in 10C.R.S. § 15-12-805Verified Sep 23, 2026View source classes, in the order its statute sets; the classes at the end of the order are the ones left unpaid when the money runs out.
1. Property held by decedent as fiduciary or trustee; 2. Costs and expenses of administration; 3. Reasonable funeral and final disposition expenses; 4. Debts and taxes with federal preference; 5. Last illness medical/hospital expenses; 6. Debts and taxes with state preference; 7. Department of Health Care Policy and Financing claim for medical assistance paid to or for the decedent; 8. Human services or early childhood department claims for excess public assistance, including child care assistance, for which the recipient was ineligible; 9. Unpaid and future child support obligations; 10. All other claimsC.R.S. § 15-12-805Verified Sep 23, 2026View source.
Colorado pays them in proportion to their amountsC.R.S. § 15-12-805(2)Verified Sep 23, 2026View source: each claim in the class receives the same share of what it is owed.
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.
Yes. A person named in a will who has not yet been appointed can decline the appointment, and an insolvent estate is a common reason to. In Colorado, the way to decline is a written renunciation filed with the courtC.R.S. § 15-12-203(3)Verified Sep 22, 2026View source. The Renunciation of Executor for Colorado prepares the writing or the state's official form.
Is this your situation?
Get a complete guide for your specific circumstances.
Named as Executor
What an executor actually does: getting appointed, notifying creditors, paying debts and taxes, and where personal liability starts.
Learn more
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 more
Loss of a Spouse
What a surviving spouse needs to do: death certificates, survivor benefits, whether probate is even required, and the tax election that expires.
Learn moreForms for Settling an Estate in Colorado
Free forms for settling an estate in Colorado: probate petition, small estate affidavit, creditor notice and closing forms. Prepare each form for Colorado.
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 Settling an Estate in Colorado
Free tools for settling an estate in Colorado: whether probate is needed, executor and trustee pay, creditor deadlines and taxes. Run each tool for Colorado.
How Much Can an Executor Charge?
Colorado pays executors reasonable compensationC.R.S. § 15-10-602 (reasonable compensation; no statutory percentage)Verified Sep 8, 2026View source, typically 2.2%Estimated from the 16 state statutes that set an executor fee schedule (median and interquartile range at this estate value)Verified Sep 8, 2026View source to 3.8%Estimated from the 16 state statutes that set an executor fee schedule (median and interquartile range at this estate value)Verified Sep 8, 2026View source of the estate.
Can I Self-File Probate?
In Colorado, informal probate is availableC.R.S. § 15-12-301Verified Sep 8, 2026View source, and a self-represented executor can usually handle it for a simple, uncontested estate.
How Do I Get Letters Testamentary?
In Colorado, the Probate registrar in informal proceedings issues Letters Testamentary or Letters of Administration once the District Court of the county where the decedent lived appoints the personal representative; an informal (registrar) track is availableC.R.S. § 15-12-301Verified Sep 8, 2026View source.
What Are the Creditor Claim Deadlines?
In Colorado, 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 of the creditor notice to present claims; late claims are barred.
How Do I Claim a Deceased Person's Unclaimed Property?
In Colorado, a deceased owner's unclaimed property is claimed from the Colorado Department of the Treasury, Great Colorado Payback (Unclaimed Property)Colo. Rev. Stat. 38-13-101 to 38-13-1504 (Revised Uniform Unclaimed Property Act)Verified Aug 24, 2026View source. After a search match, the Unclaimed Property Office sends a claim form, and the claim form lists the documentation required for that claimClaim FAQ (Great Colorado Payback)Verified Aug 24, 2026View source.
How Do I Open an Estate Account When Someone Dies?
Compare estate-account opening requirements bank by bank: channels, required documents, and steps.
What Social Security Survivor Benefits Can I Get?
Which Social Security survivor benefit a spouse, former spouse, child or parent can get, what share it pays, and the lump-sum death payment.
Hire a Colorado Probate Attorney
Browse 96 probate firms in Colorado with addresses, contact info, and practice details.
Your kids shouldn't have to do this.
Colorado Estate Settlement Resources
In-depth guides covering Colorado probate, estate administration, and settling an estate.