TRUSTS
Estate Administration & Representation
Estate Administration
in accordance with the estate plan or rules under Colorado law
Estate Administration is the process of inventorying assets, providing notice of the administration to all interested parties – including creditors, and ultimately the distribution of assets to beneficiaries. Whether an estate plan has been created or not, the estate of a deceased individual will need to be managed and closed out.
Generally, estate administration includes four steps:
Step 1
Taking an inventory of all assets
Step 2
Giving notice to all beneficiaries and creditors
Step 3
Paying the debts of the estate
Step 4
Making distributions to the beneficiaries
Who we represent in the estate administration process
- Beneficiaries and their interest in an estate administration.
- A Trustee or Administrator with their fiduciary responsibilities toward beneficiaries and/or the court.
- Heirs of a decedent to counsel and determine their rights under Colorado intestacy law.
Beneficiaries
Beneficiaries are those who are entitled to receive assets in an estate. Beneficiaries may receive a specific bequest such as a family heirloom or a general bequest such as 50% of the remainder of the estate. If an individual passes away without a will, beneficiaries are still identified under Colorado law. These beneficiaries are usually the spouse and children of the person who passed away.
Trustee, Administrator, Personal Representative
In these roles, an individual carries out the activities in an estate administration. They may have periodic reporting requirements to a trustor, beneficiary or the court. They may be liable for failing to complete certain responsibilities. An estate attorney can guide individuals through the steps involved in their particular situation and ensure their duties have been met.
Probate vs. Non-Probate
It is important to understand the difference between assets that are subject to probate proceedings and assets that are not. Generally, non-probate assets include assets held in trust, accounts with designated beneficiaries, and property held as joint tenants with right of survivorship. Upon the death, individual non-probate assets are transferred to a beneficiary or joint owner without oversight or approval from a probate court – this allows for assets to be distributed much quicker and, usually, with less cost associated with their transfer. Additionally, for Medicaid purposes, non-probate assets in Colorado are not subject to recovery by the state under the Medicaid Estate Recovery Program.
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