Detailed Answer
In Colorado probate, a personal representative must obtain formal authorizations from heirs before distributing sale proceeds of real property. These authorizations ensure that heirs consent to closing proceedings and release the representative from liability.
1. Waiver of Notice and Hearing on Petition for Final Settlement and Distribution
Under Colorado statute, each heir entitled to notice of the final settlement hearing may sign a written waiver to both notice and hearing. By signing this form, the heir agrees to the proposed distribution plan without requiring a court appearance. See C.R.S. §15-12-1304.
2. Consent to Distribution and Final Accounting
The personal representative prepares a final accounting showing all assets, liabilities, sale proceeds, and proposed distributions. Heirs sign a Consent to Distribution form, confirming they have reviewed and agree with the accounting and plan to allocate the net proceeds from the property sale.
3. Receipt and Release of Personal Representative
After funds are disbursed, heirs execute a Receipt and Release document. This form acknowledges receipt of their share of proceeds and releases the personal representative from any future claims related to the property sale.
4. Waiver of Inventory, Appraisement, and Administration (Optional)
An heir who does not wish to serve or contest may sign one or more of these waivers:
- Waiver of Inventory and Appraisement under C.R.S. §15-12-702
- Waiver of Administration under C.R.S. §15-12-703
- Disclaimer of Interest under C.R.S. §15-12-706 (if an heir declines all rights to proceeds)
5. Closing Documents for Real Property Sale
Heirs listed as co-owners or beneficiaries on title must also sign closing documents to transfer the real property to a buyer. Common documents include:
- Deed (e.g., Special Warranty or Quitclaim Deed)
- Settlement Statement (HUD-1 or Closing Disclosure)
- Affidavits required by the title company (e.g., Non-Foreign Affidavit)
- Colorado Real Estate Transfer Declaration
Helpful Hints
- Review all proposed forms with the personal representative and, if needed, an attorney before signing.
- Confirm that the final accounting reflects all sale expenses, liens, and taxes.
- Sign waivers and releases only after the personal representative files the petition for final settlement.
- If the estate qualifies as a small estate (C.R.S. §15-15-401), consider summary probate to simplify distributions: C.R.S. §15-15-401.
- Keep fully executed originals of all waivers, releases, and closing documents in the estate file.