When a loved one passes away, one of the biggest questions families face is what happens to their real estate. A home, rental property, or parcel of land is often one of the most valuable assets in an estate and how that property transfers depends largely on how it was titled before death. In Colorado, there are several ways property can transfer after someone passes, ranging from simple automatic transfers to lengthy probate proceedings.
Understanding how real estate passes after death can help families avoid unnecessary court involvement, protect assets, and ensure a loved one’s final wishes are honored. Here’s an overview of the most common ways property is transferred after death in Colorado and how careful estate planning can simplify the process.
When Real Estate Goes Through Probate
If a person dies owning property solely in their name with no designated beneficiary or joint owner, that property usually must go through probate. Probate is the legal process of validating a will, paying debts, and transferring remaining assets to heirs or beneficiaries.
In Colorado, probate is handled by the district court in the county where the deceased person lived. If the deceased left a will, the court follows its instructions. If there is no will, the property passes according to Colorado’s intestate succession laws, which prioritize spouses, children, parents, and other close relatives.
Probate can take several months or even a year, depending on the size and complexity of the estate. During this time, the property cannot be sold or transferred without court approval. That’s why many people choose to take steps during their lifetime to ensure their real estate transfers outside of probate.
Joint Ownership and the Right of Survivorship
One of the simplest ways to avoid probate for real estate is through joint ownership. When two or more people own property as joint tenants with right of survivorship, the property automatically transfers to the surviving owner upon one owner’s death.
For example, if a married couple owns their home as joint tenants, and one spouse dies, the surviving spouse automatically becomes the sole owner with no probate required. The transfer occurs by operation of law and can be confirmed by filing a death certificate and an affidavit with the county clerk and recorder.
However, it’s important to note that joint tenancy has limitations. It provides no protection if both owners pass away simultaneously, and it can cause complications in blended families or when property is co-owned with non-family members. A qualified estate planning attorney can help determine if joint ownership is the right solution for your situation.
Using a Revocable Living Trust to Transfer Real Estate
Placing real estate into a revocable living trust is one of the most effective ways to ensure a smooth transfer of property after death. When you transfer ownership of your property to your trust, you still retain full control of it during your lifetime. Upon your death, the trust’s successor trustee can transfer or sell the property according to your instructions without going through probate.
This approach is particularly useful for families with multiple properties, blended families, or complex estates. It allows for privacy (since trusts are not part of the public record) and can help reduce administrative delays and legal costs. It also ensures that your chosen trustee can act quickly to manage or sell property if necessary.
At Evans Case, our attorneys frequently help clients fund their living trusts with Colorado real estate, ensuring deeds are properly drafted and recorded to reflect the trust ownership.
Transfer-on-Death (TOD) Deeds in Colorado
Colorado law allows property owners to use a Transfer-on-Death (TOD) deed, sometimes called a beneficiary deed, to name one or more beneficiaries who will inherit the property automatically upon death. This is one of the simplest probate-avoidance tools available for real estate.
When you sign and record a TOD deed with your county’s clerk and recorder, the property remains fully under your ownership during your lifetime. You can sell it, refinance it, or revoke the TOD designation at any time. When you pass away, the named beneficiary must record your death certificate, and ownership transfers automatically.
Unlike joint tenancy, a TOD deed does not give the beneficiary any ownership interest while you are alive. This means your property stays fully protected from the beneficiary’s creditors or legal issues until after your death.
Real Estate Owned by an Estate or Trust
When a decedent’s real estate is held in their name alone but they had a valid will or trust, the executor or trustee is responsible for managing the property. This may involve paying mortgages, property taxes, and insurance premiums while the estate is being settled. If the property is to be sold, the executor or trustee must typically obtain approval from the court or follow the directions outlined in the estate plan.
If the property is held within a trust, the trustee can act immediately to transfer ownership or sell the property as instructed by the trust documents without the need for probate court oversight. This efficiency is one of the main reasons many Colorado residents choose to include their real estate in a trust as part of their estate plan.
Avoiding Common Mistakes in Real Estate Transfers
Even well-intentioned families can run into problems when transferring real estate after death. Some common mistakes include:
- Failing to update property titles after major life changes (like marriage, divorce, or the death of a co-owner).
- Not properly recording deeds or trust transfers with the county.
- Leaving multiple heirs to co-own property without clear instructions for its use or sale.
- Assuming a will alone is enough to avoid probate; it’s not.
These errors can lead to disputes, delays, or even forced sales of property. Proper legal planning can prevent these outcomes and give your family peace of mind.
Get Guidance on Real Estate Transfers in Colorado
Whether you’re creating an estate plan or handling the estate of a loved one, it’s important to understand how real estate is transferred under Colorado law. The right planning can help your family avoid probate, reduce taxes, and preserve your property for future generations. At Evans Case, our attorneys can help you determine the best way to title, transfer, or protect your real estate assets as part of your broader estate strategy.
If you have questions about transferring real property after death, contact us today. We’ll walk you through your options and create a plan that ensures your property passes smoothly to your loved ones while minimizing stress and legal costs.
