Disclaimer: This article provides educational information only and is not legal advice.
Detailed Answer
As an executor (personal representative) handling an estate in Colorado, you must respond promptly to any creditor’s settlement demand. Colorado law requires you to allow or reject claims within three months after the first publication of notice to creditors (C.R.S. § 15-12-1006).
To evaluate a settlement demand, gather the following documentation:
1. The Original Claim or Demand
- Copy of the creditor’s written demand or invoice with dates, claimed amounts, and itemized charges.
- If the claim was made orally, follow up in writing to document the details.
2. Death Certificate and Estate Records
- Certified copy of the decedent’s death certificate.
- Letters Testamentary or Letters of Administration issued by the probate court, proving your authority.
3. Asset Inventory and Appraisals
- Detailed inventory of estate assets filed with the court (C.R.S. § 15-12-708).
- Appraisal reports or market valuations for real property, vehicles, and personal property.
4. Documentation of Estate Liabilities
- Cancelled checks, bank statements, or payment receipts for debts already paid.
- Copies of claims or creditor notices previously filed with the probate court.
5. Correspondence and Negotiation Records
- Emails, letters, or notes summarizing discussions with the creditor.
- Offers and counteroffers exchanged, including dates and terms.
6. Supporting Evidence for Disputed Claims
- Contracts, receipts, medical records, or other documents that challenge the creditor’s claim.
- Expert reports or professional opinions, if needed.
After compiling these records, review the claim’s validity and value. You may accept, reject, or negotiate the demand. If you choose to reject the claim, file a notice of disallowance with the probate court within the three-month period (C.R.S. § 15-12-1006).
Helpful Hints
- Keep a master file with date-stamped records of every creditor communication.
- Review local probate court rules for specific filing requirements and fees.
- Send all responses via certified mail to track delivery.
- Consult a probate attorney if claims exceed simple calculations or involve litigation.
- Publish creditor notice promptly to preserve deadlines for estate claims.