Estate Planning in Colorado

Married with children (same marriage)

If all children are also children of the surviving spouse and the spouse has no other children, the spouse inherits the entire estate. If the spouse has other descendants, the spouse receives the first $225,000 (CPI-adjusted) plus half the balance.

Married with children from a prior relationship

The spouse receives the first $150,000 (CPI-adjusted) plus half the balance. Children from the prior relationship split the rest.

Married, no children

If no parents survive, the spouse inherits everything. If parents survive, the spouse receives the first $300,000 (CPI-adjusted) plus three-quarters of the balance.

Single with children

Children inherit everything equally per capita at each generation.

Single, no children

Parents inherit equally. If no parents survive, siblings inherit per capita at each generation. The chain continues through grandparents and their descendants. A Designated Beneficiary may also inherit if an agreement exists.

What makes a will valid

A will must be in writing and either: (a) signed by the testator and witnessed by two people, OR (b) signed by the testator and acknowledged before a notary, OR (c) entirely handwritten and signed (holographic will). Electronic wills are also valid under the CUEWA.

What people think

That a will must be witnessed by two people to be valid.

What actually happens

Colorado is one of the most flexible states for will execution. Notarization alone — without any witnesses — makes a will valid. Holographic wills require only that material portions be handwritten. And the harmless error doctrine can rescue defective wills with clear and convincing evidence of intent. This flexibility means more wills are valid in Colorado than in most states.

Common failure

Not using a Designated Beneficiary Agreement for an unmarried partner. Without one, the partner has no intestacy rights — and if the will is invalidated, the partner receives nothing.

When a trust is better

When avoiding probate for real property, when privacy matters, when managing property in multiple states, or when structuring distributions for minor children.

Execution checklist

1. Sign the will with two witnesses — OR have it acknowledged before a notary (either method is sufficient alone)
2. Execute a self-proving affidavit for streamlined informal probate
3. If using a holographic will, ensure the material portions (beneficiaries and bequests) are in your own handwriting
4. For unmarried partners, consider a Designated Beneficiary Agreement in addition to the will
5. If using an electronic will, comply with the CUEWA requirements

What it does

Grants authority to a named agent to manage financial, legal, and property affairs on your behalf.

Key rule

Colorado adopted the Uniform Power of Attorney Act. The document must include durability language. Statutory form available.

Real-world friction

Financial institutions may reject POAs they consider outdated or non-standard. Using the Colorado statutory form reduces friction.

Common mistake

Confusing the financial POA with the medical POA. They are separate documents under separate statutes.

What it covers

Your preferences for medical treatment and the designation of a medical decision-maker.

What's different

Colorado uses the Medical Treatment Decision Act for living will declarations and a separate medical durable power of attorney for agent designation. Both should be executed for comprehensive coverage.

Execution requirements

The living will must be signed and witnessed by two adults. The medical POA must be signed and witnessed or notarized. The healthcare agent should not serve as a witness.

Common misunderstanding

Assuming a living will alone is sufficient. Without a medical POA, no one has clear authority to make decisions beyond what the living will specifically addresses.

When required

When assets are held solely in the decedent's name without beneficiary designation, survivorship rights, or trust.

What makes Colorado different

Colorado's UPC-based probate system is among the most flexible in the country. Informal probate handles most uncontested estates without a court hearing. The will execution rules are exceptionally permissive — notarization alone validates a will, holographic wills require only material portions in handwriting, and the harmless error doctrine rescues defective wills. Colorado is also the only state with the Designated Beneficiary Agreement, which creates intestacy rights for unmarried adults. The state has no estate or inheritance tax.

Probate paths

What people get wrong

Not understanding the Designated Beneficiary Agreement. Unmarried partners in Colorado have a statutory tool that gives them intestacy rights — but most don't know it exists. Without either a will or a DBA, an unmarried partner inherits nothing.

When a trust is useful

When avoiding probate for real property (especially in high-value Colorado markets like Denver, Boulder, and mountain communities), when privacy matters, when managing property in multiple states, or when structuring distributions for minor children.

When a trust is unnecessary

When the estate qualifies for the collection-by-affidavit procedure, when all assets have beneficiary designations or survivorship rights, or when the informal probate process is sufficient.

Key mistake

Creating a trust but not retitling real property into it. Colorado real estate held in the decedent's name goes through probate regardless of whether a trust exists.

Not using a Designated Beneficiary Agreement for an unmarried partner

Colorado is the only state that allows unmarried adults to create intestacy rights through a statutory agreement. Without one — and without a will — an unmarried partner inherits nothing. The DBA must be signed, notarized, and recorded with the county clerk.

Not knowing that notarization alone validates a will

Colorado allows a will to be valid if acknowledged before a notary — no witnesses required. Many people go through the effort of finding witnesses when a trip to a notary would have been sufficient.

Assuming the intestacy dollar amounts are fixed

Colorado adjusts the intestacy preferential shares ($150K/$225K/$300K base amounts) annually for cost of living. The actual amounts in the year of death may be higher. Check the current CPI-adjusted figures.

Relying on the harmless error doctrine instead of proper execution

Colorado's harmless error doctrine can save a defective will, but it requires a court proceeding with clear and convincing evidence — expensive and uncertain. Proper execution (witnessed, notarized, or holographic) is always preferable.

Not understanding the blended family intestacy distinctions

Colorado has four different intestacy formulas depending on the family structure: $300K+3/4 (parents only), $225K+1/2 (spouse has other children), $150K+1/2 (decedent has other children), or everything (all shared children). The formula depends on whose children are from outside the marriage.

Not recording the Designated Beneficiary Agreement

The agreement must be recorded with the county clerk to create inheritance rights. An unrecorded agreement may not be enforceable for intestacy purposes.