Detailed Answer
1. Bond Requirement and Surety
Under Colorado law, the court typically requires an administrator (also called a personal representative) to post a bond before handling any estate assets. Colorado Revised Statutes (C.R.S.) § 15-12-801 mandates the bond amount equal the total appraised value of the probate estate plus anticipated income. The bond protects beneficiaries and creditors if the administrator mismanages funds. C.R.S. § 15-12-801.
The bond must be secured by a qualified surety company authorized in Colorado. If the estate holds sufficient non-exempt real or personal property, the administrator may petition to waive or reduce the bond by posting property as security instead of a traditional surety bond.
2. Inventory, Appraisement, and Reporting
Within 90 days of appointment, the administrator must file a verified inventory and appraisement of all estate assets. See C.R.S. § 15-12-803. This inventory allows the court and interested parties to monitor estate assets. The administrator must also file periodic accountings showing receipts, disbursements, and the remaining balance. These filings give creditors and beneficiaries an opportunity to review and object.
3. Court Supervision and Hearings
The probate court retains supervisory power throughout administration. Upon request by interested parties or on its own motion, the court can schedule hearings to review the administrators actions. If beneficiaries or creditors suspect mismanagement, they may file a motion to compel a new accounting, surcharge the administrator, or remove them from the position. Colorado courts apply C.R.S. § 15-1-404 for removal for cause.
4. Remedies for Non-Compliance
If the administrator breaches duties or misuses funds, the court can:
- Enforce the bond and recover losses from the surety.
- Impose a surcharge—a monetary penalty—to compensate the estate.
- Remove the administrator and appoint a replacement.
- Hold the administrator in contempt of court for failure to comply with orders.
Creditors and beneficiaries may also bring a civil action against the administrator for negligence, breach of fiduciary duty, or conversion of estate assets.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Always consult a qualified attorney in Colorado to address your specific situation.
Helpful Hints
- Review the courts local probate rules for deadlines and filing requirements.
- Keep detailed records of every transaction and communication.
- Notify all beneficiaries and creditors promptly of key filings.
- Consult with a probate attorney if the bond amount seems excessive or if you need to petition to reduce it.
- Attend all court-ordered hearings to avoid default judgments or removal.