How to avoid probate in Colorado
In Colorado, as of October 2026, you can keep most property out of probate by planning ahead. Common tools are a funded living trust, a beneficiary deed for your home, and payable-on-death labels on accounts. If what’s left is personal property worth $88,000 or less, and the death was in 2026, your family may use a small estate affidavit instead.
- Reviewed by
- Daniel R. Klein, attorney
- Last reviewed
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- 7 minutes
This guide is general information about Colorado and Arizona law as of . It is not legal advice.
Why do families want to avoid probate?
Probate is the court process for settling an estate after a death. In Colorado, many probate cases are handled by filing forms, without a hearing. Probate is not always a bad thing. But it does take time, money, and effort.
- Colorado’s waiting periods keep most probate estates open at least 6 months (C.R.S. 15-12-1003).
- There are court costs, starting with a $229 filing fee (Colorado Judicial Branch fee list, as of October 2026).
- Someone must send notices, make an inventory, and file court documents.
- If you own a home in another state, your family may face a second case there. That is called ancillary probate.
Planning ahead can spare your family much of this. Here are the most common ways Colorado families do it.
What property skips probate in Colorado?
Property skips probate when it has a built-in way to pass to someone at your death. This table shows the most common tools.
| Tool | Works for | How it passes at death | Colorado law |
|---|---|---|---|
| Living trust | Almost any property you move into it | Your successor trustee transfers it | C.R.S. 15-5-401 |
| Beneficiary deed | A home or land | Goes to the person named on the recorded deed | C.R.S. 15-15-401 to -413 |
| Payable-on-death (POD) | Bank and credit union accounts | The bank pays the named person | C.R.S. 15-15-201 |
| Transfer-on-death (TOD) | Stocks, bonds, brokerage accounts | The firm re-registers it to the named person | C.R.S. 15-15-301 |
| Beneficiary form | Life insurance, IRAs, 401(k)s, annuities | Paid to the named beneficiary | Policy or plan terms |
| Joint tenancy with right of survivorship | Homes, accounts | The surviving owner keeps it | The deed or account title |
| Vehicle TOD beneficiary | Cars and trucks | The DMV re-titles it with form DR 2009 | C.R.S. 42-6-110.5 |
Many families use more than one of these tools. The goal is that every item you own has a clear path.
How does a living trust help you avoid probate?
A living trust, also called a revocable trust, is a legal setup you control while you live. You move property into the trust’s name. You are usually your own trustee, so day to day, little changes.
When you die, the person you chose as successor trustee takes over. They pass the property to your beneficiaries by following your trust, usually without a court case.
A trust also helps while you are alive. If you become unable to manage your money, your successor trustee can step in without court.
The key word is funded. A trust controls only what you put into it. Moving property into it is called funding a trust. Read our guide on how to fund a living trust.
What is a Colorado beneficiary deed?
A beneficiary deed passes your home to the people you name when you die, without probate (C.R.S. 15-15-401 to -413). It is one of the simplest tools for a home.
- You keep control. You can still live in, sell, or refinance your home.
- No one else has to agree. Your beneficiary does not need to sign or even be told.
- It must be recorded before your death. A deed signed but never recorded does not work.
- Your will can’t change it. To change it, you must record a new document (C.R.S. 15-15-405).
There is one important caution. If you apply for Medicaid while a Colorado beneficiary deed is in effect, you’re still treated as owning the home, and it counts as your resource (C.R.S. 15-15-403). If long-term care is a concern, this is worth discussing with a lawyer first.
How do payable-on-death and transfer-on-death accounts work?
A payable-on-death label lets you name a person to receive a bank account at your death. For investment accounts, the label is called transfer-on-death (C.R.S. 15-15-201, -301).
You keep full control while you live. The person you name has no rights until you die. Then they bring a death certificate to the bank, and the account is theirs.
Most banks can add a POD beneficiary with a short form. Many people also name a backup, in case their first choice dies first.
Should you add a child to your deed or bank account?
Adding a child as a joint owner can avoid probate. When you die, the surviving owner keeps the property. But it can cause problems:
- Your child becomes an owner right away, not just at your death.
- Your child’s debts, divorce, or lawsuit could reach the property.
- The property goes only to the joint owner, even if your will says to split things evenly.
- Adding someone to a deed can have tax effects.
A beneficiary deed or a payable-on-death label usually avoids these problems. Many people talk with a lawyer before adding anyone to a title.
Can a small estate skip probate?
Yes. If your loved one’s estate is small, a small estate affidavit may be enough. As of October 2026, it works for personal property worth $88,000 or less, for a person who died in 2026 (C.R.S. 15-12-1201; JDF 999).
- It can be used once 10 days have passed since the death.
- It covers personal property only, like bank accounts and belongings. It cannot transfer a house or land.
- It is not filed with the court. It goes to the bank or other holder, with a death certificate.
- A holder who refuses without a good reason may have to pay your lawyer fees (C.R.S. 15-12-1202).
For vehicles, the Colorado DMV uses its own form, DR 2712, not the court’s affidavit (JDF 998).
Do you still need a will if you avoid probate?
Yes. A will is still an important safety net.
- A pour-over will sends anything left outside your trust into it, though that property may still need probate.
- A will can name a guardian for young children.
- A will covers property you forget, or buy later.
Most plans also include a durable power of attorney and a medical power of attorney. These help while you are alive.
What mistakes can undo a probate-avoidance plan?
These are common problems:
- An unfunded trust. The trust exists, but the house and accounts are still in your own name.
- Out-of-date beneficiary forms. A form still names a former spouse, or a person who has died.
- No backup beneficiary. If your only beneficiary dies first, the account may go through probate.
- Naming “my estate” as beneficiary. That sends the account straight into probate.
- Naming a young child directly. A child under 18 cannot manage money, so a court may need to step in.
- New property later. You buy a new home or open a new account and forget to fund it.
A short review every three to five years, and after any big life change, catches most of these.
What if you own property in Colorado and Arizona?
Some families own homes in both states. Without planning, your family could face probate in Colorado and a second, ancillary case in Arizona.
You can avoid this by putting both homes in a funded living trust. Or you can record a beneficiary deed in each state. An Arizona beneficiary deed can even name your living trust as the beneficiary (A.R.S. 33-405).
If you live in Arizona, what is different?
Arizona has the same kinds of tools, with some key differences (as of October 2026):
- Beneficiary deeds are allowed under A.R.S. 33-405. The deed must say it takes effect at death. It can name your living trust.
- Married couples can hold title as “community property with right of survivorship.” The survivor then owns it without probate (A.R.S. 33-431).
- Small estate limits are higher. Personal property up to $200,000 can pass by affidavit after 30 days. Arizona real estate up to $300,000 can pass by a separate affidavit after 6 months (A.R.S. 14-3971).
- POD and TOD labels work much the same (A.R.S. 14-6201, 14-6301). So do vehicle TOD beneficiaries (A.R.S. 28-2055).
Questions people ask
Is a beneficiary deed better than a living trust?
Neither is right for everyone. A beneficiary deed is simple and passes one home. A living trust can hold almost everything and helps if you become unable to manage your affairs. In Colorado, a beneficiary deed can also affect Medicaid. We can help you compare them for your situation.
Do I need to avoid probate if my estate is small?
Maybe not. If your family will inherit only personal property worth less than the small estate limit, they may not need probate at all. But if you own a home in your name alone, the small estate affidavit cannot transfer it in Colorado.
Can I avoid probate on my Arizona winter home?
Often, yes. An Arizona beneficiary deed or a funded living trust can pass Arizona real estate without an Arizona probate case. An Arizona beneficiary deed can even name your living trust as the beneficiary (A.R.S. 33-405).
When should you call a lawyer?
Consider calling us if:
- you own a home, especially in more than one state,
- you or your spouse may need long-term care soon,
- you have a blended family, or a beneficiary who needs help managing money,
- you have a trust but aren’t sure it was ever funded,
- you want to add a child to a deed or account.
Sources
- Colorado Revised Statutes, Title 15 (2024 official edition): C.R.S. 15-5-401; 15-12-1003, -1201, -1202; 15-15-201, -301, -401 to -413
- Colorado Judicial Branch: court fee list, JDF 998, JDF 999
- Colorado DMV: What to do when a loved one dies (C.R.S. 42-6-110.5; form DR 2009)
- Arizona Revised Statutes: A.R.S. 14-3971, 14-6201, 14-6301, 28-2055, 33-405, 33-431
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