When a person dies, what happens next depends on whether the deceased person had any foundational estate planning documents such as a last will and testament (otherwise known as a will) or trust, who the living relatives are, and their relationship to the person who died.
Probate is a formal legal process of proving that a will is valid (if the person had a will), appointing someone to carry out the deceased person’s wishes (known as a personal representative), and supervising the distribution of the deceased person’s money and property. Here are some important probate rules you should be aware of should you need to wind up a loved one’s affairs.
Deadlines. Deadlines are important rules that must be followed during the probate process. Failing to meet these deadlines could get you in trouble with the court. A last will and testament must be filed with the court in accordance with Colorado statutes.
Collecting and securing items. The personal representative must locate and secure the deceased person’s money and property and create an inventory of all items. There are deadlines for filing an inventory with the court. During this period, the personal representative may also need to establish a tax identification number for the estate and open an estate checking account for depositing estate funds.
Notifying creditors. The personal representative must notify known creditors and attempt to find unknown creditors; and, is required to publish notice of the deceased person’s death in appropriate newspapers to run for a specified length of time.
Maintaining and providing estate accounting records. The personal representatives must maintain accounting records as proof of monies coming into and going out of the estate. Depending on the circumstances, the accounting records may need to be filed with the court, and interested parties may need to sign releases at certain intervals.
Filing and paying taxes. A personal representative must ensure that the deceased’s final tax return is filed by the personal income tax filing deadline of the year following the deceased’s death. If the estate earns income after the deceased’s death, the personal representative must file an estate income tax return.
Who Has to Know. During the probate process, there may be multiple individuals who need to be kept informed about what is happening. When dealing with individuals other than those the deceased named in a will, it may be tempting to leave them in the dark, especially if there has been bad blood. However, personal conflicts do not absolve the personal representative of the duty to keep an interested person informed and to provide them with the information they are legally entitled to.
Who Can Be in Charge. Another important probate rule is who can be appointed as a personal representative. Most often, a personal representative is a surviving spouse, a family member, a close family friend, or an attorney.
We Are Here to Help
Probate is a process with many rules. We understand that this can be very overwhelming for many people. We are committed to our clients to ensure smooth estate administration. If you would like to learn more about the probate process and what is involved, please give us a call.