If you own a home or other real estate in Colorado, you might be wondering how to make sure it passes smoothly to your loved ones when you’re gone—without the delays or cost of probate. One tool that can help? A beneficiary deed.

Beneficiary deeds are simple, affordable, and powerful, but like all legal tools, they work best when used in the right way. Here’s what you need to know.

What Is a Beneficiary Deed?

A beneficiary deed (sometimes called a “transfer-on-death” deed) allows you to name someone who will automatically inherit your real estate after your death—without it going through probate.

Think of it like naming a beneficiary on a life insurance policy or retirement account. You still own the property during your lifetime and can sell it, refinance it, or change your mind. But once you pass away, the property transfers directly to the person you named, with no court involvement needed.

How Does It Work in Colorado?

In Colorado, beneficiary deeds are governed by state statute and must follow specific rules to be valid. Here’s a quick overview:

• The deed must be signed and notarized during your lifetime.
• It must be recorded with the county clerk and recorder before your death.
• You can revoke or change it at any time while you’re alive.
• It does not create any ownership interest for the beneficiary while you’re alive, so your control stays fully intact.

If the deed is properly recorded and you pass away, your named beneficiary simply files a death certificate and some basic paperwork to take full legal title to the property.

Who Should Consider a Beneficiary Deed?

A beneficiary deed might be a great fit if:

• You want to avoid probate for your home or land
• You’re leaving real estate to one or two trusted individuals
• You want to keep ownership and control during your lifetime
• Your estate plan is otherwise simple and straightforward

For many Colorado homeowners, this tool offers a clean and cost-effective way to pass property to children, siblings, or a partner without extra court steps.

Things to Watch Out For

While beneficiary deeds can be incredibly helpful, they’re not perfect for every situation. A few things to keep in mind:

• They don’t work well for complex situations. If you’re naming multiple people or trying to manage a blended family dynamic, a trust may be a better option.
• They don’t override mortgages or liens. The property still passes subject to any debt, and the beneficiary is responsible for it.
• They can create unintended co-ownership. If you name more than one person, they’ll own the property together—and that doesn’t always go smoothly.
• They can affect Medicaid eligibility or estate recovery. Transferring property by beneficiary deed may disqualify you from Medicaid if it’s considered a countable asset or an improper transfer. Even if you qualify, the state may seek reimbursement from your estate after you pass. A trust is often a better fit for protecting assets in long-term care planning.
• They don’t substitute for a full estate plan. You’ll still want a will, powers of attorney, and other key documents to make sure everything is covered.

Can I Do It Myself?

Technically, yes—but it’s easy to make a mistake. An error in the legal description, recording process, or language can cause problems later. And if you have a will or trust that says something different, your estate plan can become confusing or inconsistent.

That’s why we recommend working with an attorney or title company to prepare and record the deed properly—so you can be confident it will work the way you intend.

The Bottom Line

Beneficiary deeds are a smart, simple option for many Colorado homeowners who want to pass real estate without probate. They offer flexibility, control, and peace of mind, but they work best as part of a thoughtful estate plan.

At Lester Law, we help you decide whether a beneficiary deed fits your goals—and make sure it’s done right. If you’re ready to explore your options, we’re here to help you protect what matters most.

———–
This website includes information about legal issues. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You should contact an attorney for advice on your specific legal problems.