Estate Planning: What if I Do Nothing?

In the world of estate planning, there is always a plan for you and your property when you die. If you choose to participate in planning your estate, the plan is your own. Subject to a few rules to protect children and spouses, you can generally do whatever you like with your estate. If you do nothing to plan your estate, the state has a plan for you. It is referred to as intestacy.

If a person makes no arrangements for the passage of his or her property upon death, most of that person’s estate will pass by intestate succession, which means that it will be distributed in the manner set forth in the Colorado intestate succession statutes. Property that passes by intestate succession constitutes what is called an intestate estate. An intestate estate is normally subject to the claims of the decedent’s creditors and to the family allowance and the other statutory allowances provided for in Colorado. The balance of a decedent's intestate estate passes to the decedent's heirs and surviving spouse in the manner and proportions set forth in the Colorado intestate succes­sion laws.

In Colorado, many people think that the intestacy laws automatically give all of what they own to their surviving spouse. This is not always true. The surviving spouse will only receive all the intestate estate if there are no surviving descendants or parents, or if there are no surviving parents and all the decedent’s descendants are also descendants of the surviving spouse. In any other scenario, the surviving spouse will receive a portion, but not all, of the intestate estate.

If the decedent leaves a surviving spouse and surviving parents but no children, the surviving spouse receives the first $351,000, plus three-fourths of any balance of the intestate estate. The surviving parent receives the remainder. If all of the decedent’s surviving descendants are also descendants of the surviving spouse, but the surviving spouse has one or more surviving descendants who are not descendants of the decedent, the surviving spouse receives the first $263,000, plus one-half of any balance of the intestate estate. If one or more of the decedent’s surviving descendants are not also descendants of the surviving spouse, the surviving spouse receives the first $175,000, plus one-half of any balance of the intestate estate. As you can see, it can be complicated.

If your estate does not fit within the framework listed above, you should engage in estate planning, and not leave it to the state to plan for you. We would be happy to help you plan your estate. Schedule a complimentary 15-minute discovery call to get started today:

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