Colorado § 15-11-208 - Exclusions, valuations, and overlapping application.

§ 15-11-208. Exclusions, valuations, and overlapping application.

(1) Exclusions.

(a) The value of any property is excluded from the decedent's nonprobate transfers to others:

(I) To the extent the decedent received adequate and full consideration in money or money's worth for a transfer of the property; or

(II) If the property was transferred with the written joinder of, or if the transfer was consented to in writing by, the surviving spouse; or

(III) If the property was transferred to a bona fide purchaser.

(b) For purposes of this subsection (1), in the absence of a finding of a contrary intent, joinder in the filing of a gift tax return does not constitute consent or joinder.

(c) Any life insurance maintained pursuant to a marriage dissolution settlement agreement or court order or any distribution from a plan qualified under section 401 (a) of the federal "Internal Revenue Code of 1986", as amended, is excluded from the decedent's nonprobate transfers to others to the extent such items are payable to a person other than the surviving spouse.

(d) Life insurance, accident insurance, pension, profit sharing, retirement, and other benefit plans payable to persons other than the decedent's surviving spouse or the decedent's estate are excluded from the augmented estate.

(e) Any completed transfers made by the decedent prior to July 1, 1974, are excluded from the decedent's nonprobate transfers to others.

(f) Any fractional interest in real property held in joint tenancy with the right of survivorship, if such joint tenancy was created by a donative transfer by someone other than the decedent or the surviving spouse, is excluded from the augmented estate.

(2) Valuations. The value of property:

(a) Included in the augmented estate under section 15-11-205, 15-11-206, or 15-11-207 is reduced in each category by enforceable claims against the included property; and

(b) Includes the commuted value of any present or future interest and the commuted value of amounts payable under any trust, life insurance settlement option, annuity contract, public or private pension, disability compensation, death benefit or retirement plan, or any similar arrangement, exclusive of the federal social security system.

(3) Overlapping application - no double inclusion. In case of overlapping application to the same property of the provisions of section 15-11-205, 15-11-206, or 15-11-207, the property is included in the augmented estate under the provision yielding the highest value and under only one overlapping provision if they all yield the same value.

(4) Community property. If there is a disparity between the titling of property pursuant to sections 15-11-204, 15-11-205, 15-11-206, and 15-11-207 and the ownership of the property pursuant to article 20 of title 15, then the community property ownership controls and one-half of the community property must be included pursuant to sections 15-11-204, 15-11-205, 15-11-206, and 15-11-207, as applicable, and any administrative expenses relating to and enforceable claims against the community property must be allocated equally between the decedents and the surviving spouse's shares of the community property.

Source: L. 2014: Entire part R&RE, (HB 14-1322), ch. 296, p. 1227, § 2, effective August 6. L. 2023: (4) added, (SB 23-100), ch. 30, p. 106, § 2, effective July 1.

Editor's note: This section is similar to former § 15-11-202 (3) as it existed prior to 2014.