How to Settle an Estate in Colorado: Guidance for Personal Representatives and Executors
By Gary Hubbell, ALC, GPPA
Broker/Owner, United Country Colorado Brokers & Auctioneers
Accredited Land Consultant, Graduate Personal Property Appraiser, Auctioneer
If you’ve been named as a personal representative (PR) or executor to an estate in Colorado, you hold a position of trust and legal authority. Settling an estate is more than paperwork — it’s a responsibility to honor the decedent’s wishes, follow state probate laws, and ensure a fair distribution to beneficiaries. It can be a challenging job and you will often encounter people who are unhappy with the results. In this guide, I’ll share best practices for settling an estate, backed by years of experience in estate auctions, estate real estate sales, and personal property appraisals in Colorado. You’ll also hear a few true stories — because the reality of this job isn’t always neat and tidy.
1. Know Your Role and Legal Authority as a Colorado Personal Representative
Your first step in settling an estate is to understand your authority. Your best ally is a family attorney who is experienced in these matters. If there is no attorney, the process is doable, but it will be a bit more difficult. Once someone dies, their estate is normally referred to a probate court, where the judge will determine whether the estate needs to go through probate or not. As PR, you will be handed the will. Review the will, Colorado probate laws, and court procedures. Obtain your official “letters testamentary” or “letters of administration,” which legally confirm your ability to act on behalf of the estate.
When in doubt, consult an estate attorney. Always remember: your fiduciary duty is to the estate and its beneficiaries, not to yourself or any individual heir.
2. Act Quickly to Avoid Delays and Legal Problems
Time is your enemy when settling an estate. I once stepped into a case where the estate had sat unresolved for seven years. The PR was a real estate agent whose father owned a contracting business, real estate, and valuable equipment.
In two weeks, I accomplished more than they had in seven years — and yet, internal disputes led to my removal. Two years later, the trucks and tools are still rotting in the weeds. The real estate remains unsold, while the estate is paying high property taxes on it. That’s nine years without resolution, and the PR is practically inviting a lawsuit.
As one of my favorite estate attorneys once told me: “Get it done quickly. Sell assets at a fair price, cut checks to heirs, and move on. The longer you wait, the more trouble you’ll face.”
3. Realize You’re Under a Microscope
Every move you make will be scrutinized — by heirs, attorneys, and sometimes the court. Before acting, ask yourself:
• Am I serving the estate’s best interest?
• Am I honoring the decedent’s wishes?
• Am I working efficiently and competently?
Random, emotional, or self-serving decisions will come back to haunt you.
4. Secure and Inventory Estate Assets Immediately
The moment you take on your role, lock things down. Estate property can disappear fast.
Once, I walked into a home just days after the owner’s death and saw an empty gun safe. Within 24 hours, someone had taken a dozen valuable firearms — worth thousands — along with who-knows-what in cash, gold, or stock certificates. In another estate, an heir with a meth problem broke into the garage and the safe (she knew the combination), and removed the title to a 1969 Pontiac GTO with 30,000 original miles on it. The car was worth a fortune, but she forged the deceased’s signature and sold it for $4,000. Here’s what to do right away:
• Change locks and secure all properties. You’re well within your rights to do so. Do not allow friends and relatives to come through the property and pick and choose items to take away.
• Notify banks to prevent unauthorized withdrawals.
• Create a detailed inventory with serial numbers, descriptions of items, quantities, etc.
• Keep titles, deeds, and legal documents in a secure place.
• Order duplicate titles if any are missing.
• Obtain professional appraisals for high-value property.
5. Get Professional Personal Property Appraisals for Colorado Estates
While real estate appraisers are easy to find, qualified personal property appraisers are rare. That’s why the National Auctioneers Association offers the Graduate Personal Property Appraiser (GPPA) designation — requiring 40+ hours of USPAP-compliant training.
I’m the only GPPA in Western Colorado and one of only four in the entire state. A GPPA appraisal is invaluable for probate court, accountants, and equitable asset division — whether it’s a grand piano for Cousin Cindy or a safari rifle for Nephew Will.
6. Notify Heirs, Beneficiaries, and Creditors
- Contact beneficiaries named in the will (or legal heirs if there is no will).
• Follow Colorado’s legal process for notifying creditors, which may involve public notices in the local paper.
• Inform agencies like Social Security, Veterans Affairs, and insurance providers.
• Always ensure a death certificate is on file — without it, nothing moves forward.
7. Manage Debts, Taxes, and Ongoing Expenses in Western Colorado Estate Liquidations
- Verify debts and pay only legitimate claims.
• File required income and estate tax returns.
• Keep meticulous payment records.
• Never pay estate expenses out of your own pocket.
8. Do You Need an Auction? How to Dispose of Colorado Estate Personal Property
It’s very common that people don’t want the assets of the deceased. Lifestyles change. A classic Harley motorcycle may have been Grandpa’s pride and joy, but his granddaughters have no interest in it. One of the best ways to settle an estate is through an auction. With proper marketing and presentation, the assets will be sold quickly and professionally. Otherwise, imagine selling an extensive estate piecemeal, with lots of Facebook marketplace and Craigslist ads, more than a few scammers, and dozens of meetings with buyers, some of whom may be very sketchy people. No, an auction is a much better idea. At United Country Colorado Brokers & Auctioneers, both Gary Hubbell and Jake Hubbell are graduates of the Texas Auction Academy, now known as America’s Auction Academy. We have completed dozens of estate auctions with many happy clients. At the conclusion of the auction, we factor our commission, pay any relevant sales taxes, and hand a check to the PR to divide amongst the heirs.
Once debts and taxes are cleared, distribute assets per the will or Colorado intestacy laws.
• Communicate clearly with heirs.
• Document distributions and get signed receipts.
9. Choose the Right Real Estate Representation
Estate real estate sales — ranches, farms, hunting land, commercial buildings — can be complex. Choosing an agent because they’re a friend or relative can cost the estate hundreds of thousands. An Accredited Land Consultant (ALC) has proven expertise in marketing and selling specialty properties. At United Country Colorado Brokers & Auctioneers, we have more ALCs than any other brokerage in Western Colorado — myself, Jake Hubbell, and Loren Williams. We sell farms, ranches, resorts, luxury homes, country estates, hunting properties, commercial properties, and vacant land. We’ve sold properties in Rangely, Meeker, Steamboat Springs, Glenwood Springs, Aspen, Carbondale, New Castle, Rifle, and Parachute, as well as Paonia, Crawford, Hotchkiss, Delta, Cedaredge, Grand Junction, Loma, Mack; Montrose, Ridgway, Telluride, Cimarron, Gunnison, and Crested Butte; Mancos, Pagosa Springs, Durango, and also many locations in Utah. We have the skill set to handle complex estate sales, and our competency and professionalism can’t be questioned.
10. Communicate with Compassion and Transparency
Estate settlement is often emotionally charged. Keep heirs informed, answer questions plainly, and always act with fairness.
11. Close the Estate Properly
- File a final accounting with the probate court.
• Get written acknowledgements from beneficiaries.
• Obtain a formal court discharge.
12. Protect Yourself from Liability
Mistakes can lead to personal legal and financial risk. Keep thorough records, act in good faith, and consider liability insurance for complex estates. Our best advice is boiled down to several simple concepts:
- Work with a good estate attorney
- Get expert advice on personal property values–hire a personal property appraiser (GPPA).
- If you need an auction, work with a quality auctioneer with a strong marketing platform.
- If you need to sell real estate, look for an experienced, professional broker such as an Accredited Land Consultant to market and sell estate properties. At United Country Colorado Brokers, we have three ALC’s.
- Work diligently on the estate and wrap it up quickly and efficiently.
We Are Your One-Stop Shop When It Comes to Settling a Colorado Estate
Settling an estate in Colorado requires speed, organization, legal compliance, and a human touch. By following these steps — and working with experienced professionals — you can protect the estate’s value, fulfill your legal duties, and ensure heirs receive their rightful inheritance. You will need professional assistance, and we can provide it to you. We’re a one-stop shop, starting with personal property appraisal, then on to personal property auctions, and finally, quality real estate brokerage, whether in a traditional listing cycle or through auction.
