Settling Estates Under $86,000 in Colorado: A Simpler Path for Families
Losing someone, even when their estate is modest, brings emotional weight, and managing the legalities does not help. The good news? Colorado’s Small Estate Affidavit offers a faster, less costly, and less formal way to settle smaller estates under state rules.
What’s a “Small Estate” in 2025?
If the value of the decedent’s probate-countable personal property is $86,000 or less (after subtracting any liens or encumbrances), the estate is considered “small” under Colorado law.
These values exclude assets that do not go through probate, such as:
Real estate
Jointly owned property with right of survivorship
Life insurance or retirement accounts with named beneficiaries
Payable-on-death (POD) accounts
So, the $86,000 limit applies only to property that would normally require court involvement.
Introducing: The Small Estate Affidavit
If the estate qualifies, heirs can use a Small Estate Affidavit to collect and distribute property—without opening probate court proceedings.
Here’s how it works:
Wait at least 10 days after the decedent’s death.
Ensure no personal representative has been appointed or petitioned for.
Complete and notarize the affidavit, then present it—along with a certified death certificate—to banks, the DMV, or anyone holding the decedent's personal property.
Once presented, these institutions can release the assets directly to the named heir. It is quick, convenient, and avoids the cost and delays of probate.
Why It Matters
Saves time and money: No court filing fees, no extended procedures.
Avoids court entirely: Perfect for families needing a peaceful, streamlined closure.
Legally effective: Institutions that refuse the affidavit without cause can be held responsible for legal costs.
Use Attorney Advice for Peace of Mind
Even though the affidavit is intended to simplify the process, complications can still arise, such as institutions unfamiliar with the affidavit, asset valuation questions, or unresolved debts. A qualified probate attorney can help ensure the paperwork is filled out properly and that all obligations are met.
Final Thoughts
For 2025, Colorado’s $86,000 small estate threshold makes the Small Estate Affidavit a powerful tool for families dealing with modest estates. It offers a gentle, efficient alternative to probate—but every family’s circumstances are unique. When in doubt, trusted legal guidance ensures everything is handled correctly, respectfully, and with care.
