Legal Question in Wills and Trusts in Colorado

Re: Execution of Last Will and Testament

A Personal Representative may take actions to create a reserve to handle appropriate creditor claims. Creditors are paid first before any beneficiaries are paid their shares.

Second, the Personal Representative is entitled to a reasonable fee for the actual work performed. The provisions requiring equal shares does not affect the Personal Representative's right to a reasonable fee.

The Personal Representative is a fiduciary to the estate and beneficiaries. Accordingly, the Personal Representative may not take any actions contrary to the estate's interest. The duty is to satisfy legitimate creditor's claims and taxes before any other funds are paid out. There are certain minor exceptions that your attorney can advise you about. Remember to always seek the assistance of a qualified trusts and estates lawyer before proceeding.

Handling of Estate by Executor

Louise Aron

Attorney at Law

Lakewood Office:

1536 South Ingalls

Lakewood, Colorado 80232 USA

(303) 922 7687

fax (303) 922-1370

Cherry Creek Office:

300 South Jackson #100

Denver, Colorado 80209 USA

(303) 780-7339

Satellite offices:

Boulder - 4450 Arapahoe Avenue, #100

DTC - 4610 South Ulster, #150

A TOLL FREE NUMBER is available to clients outside the Denver metro area.

web site http://effectnet.com/la/

[email protected]

LawGuru User

Dear LawGuru User:

In Colorado, the executor is called the Personal Representative.

I can't tell from your post whether or not the lawsuit you mention ("due to misappropriation of funds") is a result of the Personal Representative's misappropriation or the decedent's actions. Assuming it is the Personal Representative who has misappropriated, action should be taken immediately to stop the Personal Representative from keeping estate money to cover him or herself.

The law permits a Personal Representative to take compensation for his or her services, and to reserve funds for just debts of the decedent, but if the Personal Representative has misappropriated money, then I think his or her share of the estate, and/or his or her compensation, should be offset accordingly.

I recommend using an attorney to communicate with the Personal Representative by letter and phone call so that the matters of disagreement can be resolved by stipulated settlement without litigation. You may end up receiving less than you had anticipated, but in general compromise reduces distributions to a far less extent than litigation.

Thank you for emailing LawGuru.

Sincerely,

Louise Aron

web site http://effectnet.com/la/

[email protected]