1976, April, Pg. 508. Creditors' Claims Under the Colorado Probate Code.

5 Colo.Law. 508

Colorado Lawyer

1976.

1976, April, Pg. 508.

Creditors' Claims Under the Colorado Probate Code

508Vol. 5, No. 4, Pg. 508Creditors' Claims Under the Colorado Probate CodeThe following analysis provides a brief summary of the principal Colorado Probate Code provisions dealing with creditors of decedents' estates. Primary emphasis is placed upon the personal representative's notice to creditors, creditors' time limitations in presenting claims, methods of presenting claims, the personal representative's response to claims, classification of claims for priority, and payment of claims. All references herein are to the 1973 Colorado Revised Statutes, as amended.

Notice to CreditorsSection 15-12-801 requires the personal representative to publish notice to creditors promptly after his appointment. The requirement of a consolidated notice published by the clerk of the court, introduced in 1973, has been eliminated. The personal representative's notice must be published three times (at least once during each of three successive calendar weeks) in a daily or weekly newspaper in the county in which the estate is being probated or in an adjoining county if there is no such newspaper in the county of probate. The notice must inform creditors to present their claims to the personal representative or appropriate court within four months from the date of the first publication of notice. Section 15-12-801 also provides a suggested format for the notice to creditors. It appears, however, that the suggested format is erroneous to the extent it implies that the one-year nonclaim limitation applies if notice is given to creditors within one year from the date of death but more than eight months after the date of death.(fn1)

Nonclaim LimitationsAs a general rule, all creditors' claims arising before the death of the decedent (whether due or to become due, absolute or contingent, liquidated or unliquidated), if not barred by an applicable statute of limitations, must be presented within four months after the first publication of notice to creditors.(fn2) If the personal representative fails to publish a notice to creditors, such claims must be presented within one year after the date of death.(fn3) Claims which are not presented within the appropriate nonclaim limitations period are barred.

Creditors' claims arising at or after the death of the decedent based upon a contract with the personal representative must be presented within four months after performance is due.(fn4) Any other claim arising at or after the death of the decedent must be presented within four months after the claim arises.(fn5)

Section 15-12-803(3) provides a limited exception to the foregoing nonclaim limitations. Secured debts and claims against a decedent which are covered by liability insurance are not subject to the nonclaim

509limitations in an action to enforce the security interest or to...