It is one of the most common calls we receive. A parent has died, and one sibling (often the one who lived closest to the deceased parent) is now the personal representative of the estate, the trustee of the trust, and sometimes the agent under a power of attorney, all at once. The other family members cannot get an accounting. Assets seem to be disappearing. And the person controlling the money is also the person who stands to gain the most from how it is handled.
Colorado law does not require you to simply wait and hope. Fiduciaries (personal representatives, trustees, conservators, and agents) owe duties of loyalty, impartiality, prudent administration, and full disclosure. When a fiduciary treats an estate or trust as a personal piggy bank, favors themselves over other beneficiaries, or stonewalls legitimate requests for information, Colorado courts have the power to intervene.
What the Law Requires of Fiduciaries
A personal representative administering an estate in Colorado must settle and distribute the estate expeditiously and efficiently, in the best interests of the estate. A trustee owes trust beneficiaries duties of loyalty and impartiality and must keep beneficiaries reasonably informed about the administration of the trust. These are not aspirational goals. They are enforceable legal obligations, and the probate court has broad authority to enforce them.
Grounds for Removal
Colorado’s probate code permits the court to remove a personal representative when removal is in the best interests of the estate, including where the personal representative has mismanaged the estate, disregarded court orders, or become incapable of performing the job. The Colorado Uniform Trust Code similarly authorizes removal of a trustee for a serious breach of trust, persistent failure to administer the trust effectively, unfitness or unwillingness to serve, or other circumstances where removal best serves the beneficiaries’ interests.
In our experience, the strongest removal cases tend to involve recurring patterns: self-dealing transactions (the fiduciary selling estate property to himself or to a friendly buyer at a discount); commingling estate or trust funds with personal accounts; unexplained transfers or “gifts” made shortly before or after death; refusal to provide inventories, accountings, or basic information; and conflicts of interest that make even-handed administration impossible (for example, a fiduciary who is simultaneously defending claims that he unduly influenced the very documents he is now administering).
What a Court Can Do Beyond Removal
Removal is often just the beginning. Colorado courts can order a full accounting, surcharge a fiduciary personally for losses caused by a breach, impose constructive trusts on wrongfully transferred property, deny or reduce the fiduciary’s fees, and award other relief designed to make the estate and its beneficiaries whole. Where a fiduciary has taken property outright, additional claims (including civil theft, which can carry treble damages and attorney fees) may be available. Timing matters: the earlier problems are addressed, the easier it is to preserve assets, freeze improper transactions, and secure records before they disappear.
If You Are the Fiduciary Being Accused
We also regularly defend personal representatives and trustees. Serving as a fiduciary for your own family is a difficult, often thankless job, and disappointed beneficiaries sometimes mistake ordinary administration for wrongdoing. Good records, transparent communication, and early legal guidance are the best protection. If you have been threatened with removal or surcharge, taking the accusation seriously at the outset can mean the difference between a short-lived dispute and years of litigation.
Frequently Asked Questions
Can I remove the personal representative of an estate in Colorado?
Yes. Any interested person may petition the probate court for removal. The court can remove a personal representative when doing so is in the best interests of the estate (including for mismanagement, self-dealing, or failure to perform the duties of the office).
Is a trustee required to give me an accounting?
Generally, yes. Under Colorado law, a trustee must keep qualified beneficiaries reasonably informed and respond to reasonable requests for information about the trust’s administration. A trustee’s refusal to account is often itself evidence supporting removal.
How long do I have to act?
Deadlines vary by claim, and delay can cost you both legally and practically because assets can be spent, records lost, and transactions completed. If you have concerns, speak with an attorney promptly rather than waiting for the administration to conclude.
Talk to a Colorado Estate and Trust Litigation Attorney
At Mahoney Law, LLC, estate and trust litigation is the focus of our practice. We have decades of combined trial experience prosecuting and defending fiduciary claims in probate courts across Colorado. If you are concerned about how an estate or trust is being administered – or if you are a fiduciary facing accusations – call us at 720-502-9856 to schedule a consultation.