Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a licensed attorney in Colorado for guidance on your specific situation.
Detailed Answer
In Colorado, a personal representative or court-appointed fiduciary distributes wrongful death proceeds under Colorado’s Wrongful Death Act (C.R.S. § 13-21-201 et seq.). Follow these core steps:
1. Identify Qualified Claimants
Under C.R.S. § 13-21-202, entitled survivors include, in order of priority:
• Surviving spouse or domestic partner
• Natural and adopted children
• Parents
• Siblings
• Next of kin (if no closer relatives exist)
All eligible heirs must be located and notified before distribution.
2. Determine Distribution Shares
Colorado law generally presumes equal shares among claimants of the same priority level, subject to court discretion:
- If a spouse and children survive, divide proceeds equally among the spouse and each child.
- If no spouse survives but children do, divide equally among the children.
- If no spouse or children survive, divide equally among surviving parents or, if none, among siblings.
The court may adjust shares if fairness or a decedent’s dependents’ needs require it (C.R.S. § 13-21-201).
3. Use Probate or Independent Administration
Most wrongful death proceeds flow through the decedent’s estate. If the estate is open, the personal representative deposits funds and follows statutory notice and reporting requirements. Absent formal probate, parties may seek court supervision or an agreement among heirs to distribute funds directly.
4. Obtain Court Approval
The court reviews the proposed distribution. A hearing ensures that all entitled parties consent or that the court’s order fairly allocates the proceeds. Once approved, the personal representative issues distribution checks or transfers.
5. Close the Estate
After distribution, the personal representative files a final accounting with the court. Once the court signs an order of final discharge, the estate closes, and the representative is released from liability (C.R.S. § 15-12-803).
Helpful Hints
- Gather family records (birth certificates, marriage licenses) to confirm heirs.
- Keep a detailed ledger of all funds received, expenses paid, and distributions made.
- File the wrongful death claim within two years of the decedent’s death to avoid missing the statute of limitations (C.R.S. § 13-80-102).
- Consider mediation among heirs to resolve disputes before court intervention.
- Consult a probate attorney to navigate court filings and reporting requirements.
- Ensure minors’ shares are placed in a court-approved guardianship or trust.