Overview — What determines who gets the money?

Before the estate’s cash is distributed, the personal representative (the executor named in a will or the court-appointed administrator) must settle the estate. That means paying valid claims, funeral expenses, taxes, and administration costs. Once those obligations are paid and the estate’s distributable balance is known, the personal representative distributes the remainder to beneficiaries according to the decedent’s valid will. If there is no will, Colorado’s intestate succession rules control. See Colorado Revised Statutes, Title 15 (Probate, Trusts, and Fiduciaries): https://leg.colorado.gov/statutes/title-15-probate-trusts-and-fiduciaries

Step-by-step: How distribution typically happens in Colorado

1. Confirm beneficiaries and legal authority to distribute.

   If there is a will, the will names beneficiaries and usually the executor. If no will exists, the court appoints an administrator and the Colorado intestacy statutes identify heirs (often the children). Use Title 15, Article 11 for intestacy rules: https://leg.colorado.gov/statutes/title-15-probate-trusts-and-fiduciaries

2. Complete inventory and determine the distributable estate.

   The personal representative compiles an inventory of estate assets, determines which assets are available to satisfy debts, and identifies assets to be distributed. Some assets may pass outside probate (life insurance, retirement accounts with beneficiaries, jointly owned property) and do not enter the distributable estate.

3. Pay claims, taxes and administration expenses.

   Creditors must be notified and allowed an opportunity to present claims. The representative pays allowed claims, final income tax liabilities, and any estate or inheritance taxes. Only after these payments is the remaining cash available for distribution.

4. Prepare a proposed distribution and final accounting.

   The representative prepares a final accounting showing receipts, disbursements, and the proposed distribution to beneficiaries (children). Creditors, beneficiaries, and the court (if probate is supervised) may review the accounting.

5. Provide notices and obtain releases if possible.

   Beneficiaries usually receive notice of the proposed distribution. In many cases beneficiaries sign receipts or releases acknowledging payment and waiving further claims. Waivers can simplify closing the estate.

6. Ask the court for approval (if required) and obtain an order of distribution.

   In supervised or semi-supervised probate, or when disputes exist, the personal representative files a petition for distribution and the court issues an order approving distribution. In unsupervised probate the representative may distribute after statutory waiting periods and after resolving claims, but should keep records to show the distribution was proper. See Colorado probate procedures in Title 15: https://leg.colorado.gov/statutes/title-15-probate-trusts-and-fiduciaries

7. Distribute assets (cash or in-kind) to the children.

   Once approved, the representative pays the children their shares. Distribution can be in cash or by transferring assets (stocks, property) if beneficiaries agree. The representative should obtain signed receipts or releases and keep detailed records.

8. Close the estate.

   After distribution and filing any required final account or report, the personal representative seeks a formal discharge from the court (if supervised) or simply retains records showing final distribution (in unsupervised probate). This concludes the representative’s duties.

Key legal points specific to Colorado

• Order of priority: The will controls distribution. If there is no valid will, Colorado’s intestacy statute designates heirs—commonly the surviving spouse and children. See Title 15 for intestacy rules: https://leg.colorado.gov/statutes/title-15-probate-trusts-and-fiduciaries.
• Creditors’ claims and notice requirements may affect timing. Certain notices and claim periods must be observed before distribution.
• Some assets pass outside probate and are not part of the estate for distribution (payable-on-death accounts, beneficiary-designated retirement plans, jointly held property with rights of survivorship).
• Taxes: final income tax returns and any estate tax obligations must be addressed before full distribution. Colorado does not currently impose a separate state estate tax, but federal estate tax rules and income tax issues may apply.

Common complications and how they are handled

Several issues can delay or change distribution:

• Disputed creditor claims or beneficiary challenges — may require court resolution.
• Insufficient liquid funds — representative may need to sell assets or pro-rate distributions.
• Minor beneficiaries or beneficiaries under conservatorship — funds may need to be placed in a custodial account or guardianship/conservatorship arrangement.
• Ambiguous will language — may require interpretation by the probate court.

Helpful hints for a smoother distribution to children

• Keep careful records: inventories, receipts, bank statements, creditor correspondence, and accounting entries.
• Communicate clearly with beneficiaries about timing, proposed distributions, and any tax or creditor issues.
• Get beneficiaries to sign written receipts or releases when they receive distributions.
• Consider small estate procedures if the estate is small and qualifies under Colorado law — this can simplify or avoid full probate (check Title 15 for specifics).
• When possible, obtain the court’s written order approving distribution; it provides protection to the personal representative against later claims.
• If you expect disputes or complex tax issues, consult a Colorado probate attorney early — they can reduce delays and personal liability for the representative.