Disclaimer: This article provides general information under Colorado law and is not legal advice. Consult an attorney for advice specific to your situation.
Detailed Answer
When someone dies owning funds in a bank account, those assets become part of the decedent’s estate. In Colorado, you generally access and withdraw those funds through either a small estate affidavit procedure or a formal probate process.
1. Use the Small Estate Affidavit Procedure
If the total value of the decedent’s personal property (minus secured debts) does not exceed the statutory limit—currently $70,000 for intestate estates and $50,000 for testate estates—you may avoid full probate by filing a Small Estate Affidavit under C.R.S. §15-12-1201. Key steps:
- Wait at least 14 days after the date of death.
- Prepare an affidavit identifying yourself, the decedent, the heirs, and listing the assets.
- Swear or affirm the affidavit before a notary public.
- File the affidavit with the county court clerk.
- Provide the affidavit and certified death certificate to the bank. Once the waiting period expires, the bank may release funds up to the limit.
See C.R.S. §15-12-1201 for full requirements: C.R.S. §15-12-1201.
2. Open Formal Probate and Appoint a Personal Representative
If the estate exceeds the small estate limits or creditors contest the affidavit, you must initiate probate. Follow these steps:
- File a Petition for Probate in the county court where the decedent lived.
- Provide a certified copy of the death certificate.
- If there’s a valid will, the court issues Letters Testamentary to the named executor; otherwise, it issues Letters of Administration to an appointed personal representative (C.R.S. §15-12-301).
- Present the Letters and death certificate to the bank. Colorado banking institutions are required to honor properly issued Letters and release funds for estate administration.
- Inventory estate assets, pay valid claims and taxes, then distribute remaining funds to beneficiaries under the will or Colorado’s intestacy rules.
Formal probate typically takes 4–12 months, depending on complexity and creditor claims.
Helpful Hints
- Collect multiple certified death certificates—banks often require originals.
- Confirm current small estate thresholds and procedures with the county clerk’s office.
- Ask each bank about its specific affidavit or forms; some banks provide their own templates.
- Keep clear records of all communications and copies of submitted documents.
- If the estate holds unique or complex assets, consider consulting a probate attorney for guidance.