of Colby

2021 COA 31, 486 P.3d 466
CourtColorado Court of Appeals
DecidedMarch 11, 2021
Docket19CA1132, Estate
StatusPublished
Cited by4 cases

This text of 2021 COA 31 (of Colby) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
of Colby, 2021 COA 31, 486 P.3d 466 (Colo. Ct. App. 2021).

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY March 11, 2021

2021COA31

No. 19CA1132, Estate of Colby — Probate — Creditors’ Claims — Manner of Presentation of Claims

In this probate proceeding, the decedent’s will provides that

her primary residence, if not “claimed” by a family member, is to be

sold and the proceeds evenly distributed to her two daughters. The

appellant, one of the decedent’s daughters, contended that she

made a valid claim for the residence under the terms of the will.

The district court disagreed because the appellant’s demand did not

comply with section 15-12-804, C.R.S. 2020.

A division of the court of appeals concludes that the district

court erred because section 15-12-804 applies only to a creditor’s

claim against an estate and does not apply to a devisee’s demand

for a devise under a will. Accordingly, the division reverses the district court’s order approving the final settlement of the

decedent’s estate and remands for further proceedings. COLORADO COURT OF APPEALS 2021COA31

Court of Appeals No. 19CA1132 Teller County District Court No. 18PR5 Honorable Scott Sells, Judge

In re the Estate of Carol Ann Colby, deceased.

Kathryn Gail Town-Statham,

Appellant,

v.

Kellie Marie Johnson, in her fiduciary capacity as Personal Representative,

Appellee.

ORDER REVERSED AND CASE REMANDED WITH DIRECTIONS

Division V Opinion by JUDGE NAVARRO J. Jones and Yun, JJ., concur

Announced March 11, 2021

The Law Office of Loren Randall & Associates LLC, Loren Randall, Denver, Colorado, for Appellant

The Blattner Law Firm LLC, Lisa T. C. Blattner, Colorado Springs, Colorado, for Appellee ¶1 Appellant, Kathryn Gail Town-Statham, challenges the district

court’s order approving the final settlement of decedent Carol Ann

Colby’s estate. Town1 is Colby’s daughter. Colby’s will provides

that her primary residence, if not “claimed” by a family member, is

to be sold and the proceeds evenly distributed to her two daughters.

The district court decided that Town did not make a valid claim for

the residence because her demand did not comply with section 15-

12-804, C.R.S. 2020. We conclude that the court erred. As a

matter of first impression, we hold that section 15-12-804 applies

only to a creditor’s claim against an estate and does not apply to a

devisee’s demand for a devise under a will. Accordingly, we reverse

and remand for further proceedings.

I. Facts and Procedural History

¶2 The following evidence was presented to the district court.

¶3 Colby died on January 18, 2018, and was survived by her two

daughters (Town and Lisa Smith) and several grandchildren. Colby

left a valid will naming her granddaughter, Kellie Marie Johnson, as

“executor.” Colby’s will (the Will) devises specific personal property

1With one exception, appellant uses only “Town” as her surname in her opening brief. So we will do the same.

1 to her children and grandchildren. The Will devises her primary

residence somewhat differently. With respect to the residence, the

Will provides as follows:

VI. ADDITIONAL POWERS OF THE EXECUTOR . . . .

My executor will have the power and authority to pay all debts in my name and pertaining to my home . . . , to pay all medical bills, to sell my home . . . (if not claimed by family).

My home . . . , remaining assets, personal items and any property that are not claimed by children and grandchildren are to be sold by the Executor Kellie Johnson[;] she is to evenly distribute the remaining monies after financial obligations have been met with debts, funeral costs, selling fees and other financial obligations in my name to my daughters Kathryn Town-Statham and Lisa Smith if they survive me out right and free of trust.

(Emphasis added.)

¶4 On February 12, 2018, Johnson applied for informal probate

of the Will and informal appointment as personal representative.

She also distributed copies of the Will to Town, Smith, and others.

¶5 Town later testified that, on February 27, 2018, she sent

Johnson an email saying that she “wanted a fair share of the

home.” But Johnson testified that she could not recall Town’s

2 claiming a share of the home’s value in that email. The email itself

was not admitted into evidence, and the district court did not make

a finding as to its contents. Sometime after this email, Johnson

and Town’s attorney had a conversation in which Johnson was

apparently informed that Town would be satisfied with receiving

half of the house’s value plus an additional $10,000. Town also

requested an appraisal of the residence. Johnson, however, did not

consider any of those communications to be a “formal claim” for the

home.

¶6 In March 2018, Johnson petitioned for formal probate of the

Will and formal appointment as personal representative. She

retained counsel. Shortly thereafter, Johnson’s attorney received a

communication from Town claiming “half of what the house is

worth.” Johnson’s attorney passed along this message to Johnson,

but again Johnson did not consider it to be a “formal claim” for half

of the home’s value.

¶7 In July 2018, Johnson was appointed as personal

representative. At some point between August and November 2018,

Smith (Johnson’s mother) delivered a written request for the

3 residence to Johnson’s attorney. No one disputes that Smith’s

request was a claim for the residence.

¶8 On November 27, 2018, Johnson filed a petition for final

settlement of Colby’s estate. According to the petition, Smith would

receive the residence, and Town would receive two items of Colby’s

personal property. In February 2019, Town filed an objection to the

will and inventory. Additionally, Town filed three motions to set

aside the Will and probate the estate under the laws of intestacy.

Town did not make a demand for Colby’s residence in any of those

motions. Those motions were denied for Town’s failure to

prosecute.

¶9 The district court set a hearing on Town’s February 2019

objection. After receiving the evidence discussed above, the court

consulted section 15-12-804, which governs claims by creditors of

an estate. The court concluded that Town had failed to comply with

section 15-12-804 because she presented her “purported claim” for

Colby’s residence (or a share of it) to Johnson in February 2018,

which was before Johnson had been appointed as personal

representative. The court also decided that Town had not complied

with the Will’s terms, but the only reason the court gave for this

4 decision was Town’s failure to make a “valid claim” under the

statute. The court thus concluded that only Smith had validly

claimed Colby’s home.

¶ 10 The court thereafter granted Johnson’s petition for final

settlement of Colby’s estate.

II. The District Court Erred by Applying the Creditor Claims Provisions

¶ 11 We agree with Town that the district court erred by applying

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Cite This Page — Counsel Stack

Bluebook (online)
2021 COA 31, 486 P.3d 466, Counsel Stack Legal Research, https://law.counselstack.com/opinion/of-colby-coloctapp-2021.