Short overview: When beneficiaries or interested parties disagree about how estate money should be split, the personal representative (also called executor or administrator) should avoid informal distributions that could create personal liability. Under Colorado practice, the usual path is to either get all beneficiaries to sign a written agreement releasing the personal representative, or to ask the probate court for an order allowing an interim or final distribution. The court can approve partial distributions, require protections (bond, escrow, or releases), or hold funds until the dispute is resolved.

Who has authority to ask the court for approval?

The personal representative of the estate (the person appointed by the court) typically files a petition with the probate court asking for authority to make disbursements. If the personal representative is removed or there is no appointed representative, an interested person (heir, beneficiary, or creditor) can ask the court for relief, including appointment of a special administrator to manage or distribute funds.

Common reasons the court will allow a distribution despite a dispute

• Payment of estate administration expenses (funeral costs, attorney fees, taxes, appraisal fees).
• Payment of known, undisputed debts or claims.
• Partial distributions of undisputed portions of the estate to beneficiaries who agree, with protections for disputed claims.
• To prevent waste, deterioration, or extraordinary administrative costs arising from holding assets.

Typical protections the court may require

• Escrow: ordering funds be held in the court’s registry or with a neutral escrow agent until the dispute is resolved.
• Bond: requiring the personal representative to post a bond to protect the estate against later claims.
• Releases: obtaining signed releases from beneficiaries accepting the distribution and promising not to sue on that portion.
• Receipts and accounting: requiring a detailed accounting and documentation of how distributed funds are used.

Step-by-step: How to get court approval for release of estate funds in Colorado

1. Collect documentation: inventory of assets, list of creditors, proposed distribution schedule, account statements, and any written beneficiary agreements. Be ready to show the court why a distribution is reasonable and necessary.
2. Try to resolve informally: ask beneficiaries to sign a written consent or limited release for the proposed distribution. If all interested parties consent in writing, courts often approve distributions quickly.
3. Prepare a petition to the probate court: the petition should identify the estate, list interested parties, state the disputed issues, explain why the requested distribution is needed, and propose any protections (escrow, bond, releases). Use the probate division of the local Colorado district court where the estate is open.
4. Provide notice: serve all heirs, beneficiaries, and known creditors with the petition and any hearing date per Colorado probate notice rules. If parties cannot be found, follow the court’s rules for constructive notice.
5. Attend the hearing or seek ex parte relief if urgent: if funds are urgently needed (e.g., to pay taxes, mortgage, or preserve property), the court may grant temporary authority without full notice on an emergency basis. Otherwise, a hearing lets the judge hear objections and impose protections.
6. Follow the court order precisely: if the court approves a distribution with conditions (escrow, bond, releases), comply fully and keep records. File an accounting or report as required.
7. If contested: the contest may lead to mediation, settlement conference, or litigation (claims for breach of fiduciary duty, undue influence, or challenge to the will). The court can deny distributions until resolution.

Where to file and what to request

File your petition in the probate division of the district court where the decedent lived when they died (or where the estate is being administered). Ask the court for one or more of the following, in plain terms:

• Order authorizing payment of identified expenses or debts.
• Order authorizing interim distribution of specified funds to particular beneficiaries.
• Order directing funds to be held in escrow or deposited with the court registry pending resolution.
• Order imposing a bond or other security in favor of the estate.

Practical examples (hypothetical facts)

Example 1 — Funeral and final medical bills: The personal representative files a petition showing a $12,000 funeral bill and $8,000 final medical bill. Two beneficiaries dispute the final distribution of a bank account, but the representative asks the court to authorize payment of the bills first and offers to escrow the remaining funds. The court commonly grants authority to pay necessary administration expenses.

Example 2 — One beneficiary wants half the savings, another disputes validity of a gift: The PR asks for a partial distribution to the undisputed beneficiary and offers to put the disputed portion in the court registry or require the beneficiary to sign a release. The court may approve a partial distribution with those protections.

Relevant Colorado resources and statutes

Colorado’s probate rules and statutes govern notice, petitions, and fiduciary duties. Useful official sources:

• Colorado Revised Statutes and searchable code: https://leg.colorado.gov/colorado-revised-statutes
• Colorado Judicial Branch — probate forms and information: https://www.courts.state.co.us/Forms/Forms_List.cfm?Form_Type_ID=29

Note: specific statute numbers addressing a personal representative’s duties, notice requirements, and court powers are contained in Title 15 of the Colorado Revised Statutes. If you plan to cite a particular section (for example, on fiduciary duties or notice), use the official Colorado legislative site above to find the exact language for the section you need.

Disclaimer: This article is for general informational purposes only. It does not provide legal advice, and nothing here creates an attorney-client relationship. For advice tailored to your situation, consult a licensed Colorado probate attorney.

Helpful Hints

• Keep a clear written record: inventories, receipts, communications, and bank statements help the court and protect the personal representative.
• Get signed releases from beneficiaries when possible — a written release removes most future claims against distributed amounts.
• Consider mediation early: many probate disputes settle faster and cheaper out of court.
• If you are a personal representative and worried about liability, talk to a probate attorney before making any distributions.
• If funds are needed immediately to prevent loss (e.g., mortgage, property taxes), ask the court for emergency relief or ex parte authority and explain the urgency in your petition.
• When in doubt, ask the court to order escrow or bond rather than making a distribution that could expose you to later claims.
• Use the Colorado Judicial Branch probate forms page to find standard petitions and notice forms required in your district court: Probate forms.