10 Things for Out-of-State Owners of an Estes Valley Home or Cabin
A large share of the homes and cabins in the Estes Valley belong to families who live somewhere else. If yours is one of them, these are the points we most often raise with out-of-state owners.
1. Your Colorado property can mean a second probate. If you die owning the cabin in your own name, your family may need a probate at home and a second one (called an “ancillary” probate) in Colorado, with its own court, filings and costs.
2. A Colorado beneficiary deed can prevent that. You can record a deed now which names who gets the property when you die. You keep full ownership and can sell or change your mind at any time. The deed only works if it is recorded before your death. See Property Deeds.
3. So can a trust. If your estate plan already includes a living trust, check whether the cabin was ever deeded into it. Many were not. See Trust.
4. Your will from home is probably valid here. Colorado generally honors a will which was properly signed in the state where you made it. Even so, it should be reviewed with the Colorado property in mind.
5. Think about who inherits it, not just who owns it. A cabin left equally to four children becomes a cabin owned by four households with four opinions. A Family Cabin LLC or Family Cabin Trust sets the rules for use, costs and buyouts before anyone has to argue about them.
6. Name someone who can act for you here. If you become ill or are hard to reach, a financial Power of Attorney lets someone you trust sign for the property, deal with the county and handle an emergency repair.
7. Renting it out takes a license. Short-term rentals require a license from the Town of Estes Park (inside town limits) or Larimer County (outside them), there are caps in some areas, and licenses generally do not transfer to a new owner. Your association’s covenants may also restrict rentals.
8. Selling from out of state has its own rules. When a nonresident sells Colorado property above a set price, the title company generally must withhold a small percentage of the proceeds for Colorado income tax, which you can recover when you file your Colorado return.
9. Check your title and insurance every few years. Make sure the deed reads the way you think it does, that the insurance covers wildfire and the way the property is actually used, and that the county has your current mailing address for tax notices.
10. A local attorney can handle most of it remotely. Deeds, beneficiary deeds and powers of attorney can usually be signed where you live and sent back to us for recording, so you do not have to schedule the paperwork around your next trip up the mountain.
This page is general information, not legal advice. Talk with an attorney (and your CPA) about your own property and estate plan.
Back to Real Estate · Estate Planning · Avoiding Probate · All Practice Areas