Estate planning considerations unique to Colorado
Estate-related laws and taxes can vary by state. Here are a few of Colorado’s notable distinctions:
Separate Property System
Colorado, like most other states, is a separate property state, meaning that property and assets acquired during marriage are still considered the separate property of each spouse.
Portability of Estate Tax Exemption
Although Colorado does not have a state estate or inheritance tax, Colorado residents may need to consider federal estate tax portability.
Probate Process
Colorado allows for informal probate, which is a simplified process for estates that meet a certain threshold. For larger estates, formal probate may be necessary, which can be a costly and time-consuming process.
Intestate succession in Colorado
Here’s a summary of how assets transfer when a person dies intestate in Colorado: