Designated Beneficiary Agreements

In 2009, Colorado enacted HB 1260, the Colorado Designated Beneficiary Act, which is codified at C.R.S. 15-22-101, et seq.  It gives some of the rights of marriage to unmarried couples, including same-sex couples.

 

Rights & Benefits of a Designated Beneficiary Agreement

The law provides for numerous benefits, which are outlined in C.R.S. 15-22-105, including:

  • Property.  Hold property as joint tenants with right of survivorship or as tenants in common.
  • Inheritance.  Inherit from the other without probate.
  • Survivor Benefits.  Be designated as dependent, and receive survivor benefits for PERA, local firefighter/police pensions, and life insurance.
  • Hospital Visitation
  • Decision-Making. Have priority for appointment as conservator/guardian, and make end-of-life decisions.

There are also other rights not outlined in this article - check the statute for more information.  Also, note that a particular Designated Beneficiary Agreement may exclude any of the rights/benefits provided by the statute.

 

What's Not Included

A designated Beneficiary Agreement may be a baby-step towards affording some of the rights of marriage to unmarried or same-sex couples, but its rights are far from those of civil unions or domestic partnerships in other states.  Among the important rights not granted to designated beneficiaries are:

  • Taxes.  The designated beneficiaries cannot file a joint tax return.
  • Health Insurance.  Insurers may, but are not required to, extend health benefits to designated beneficiaries.
  • Federal Rights.  Pursuant to the Federal Defense of Marriage Act, a marriage is between a man and a woman, so none of the rights of marriage under federal law are available to unmarried, or same-sex couples.

 

Parties to a Colorado Designated Beneficiary Agreement

Pursuant to C.R.S. 15-22-104(1)(A), the parties to a Designated Beneficiary Agreement must meet the following criteria:

  1. At least 18 years-old,
  2. Competent to enter a contract,
  3. Unmarried,
  4. Not a party to another Designated Beneficiary Agreement, and
  5. Voluntarily entered agreement, without fraud or duress.

 

How to Enter a Designated Beneficiary Agreement

Pursuant to C.R.S. 15-22-104(2), in order to be valid the agreement must:

  1. Substantially comply with the standard form contained in C.R.S. 15-22-106, 
  2. Be properly completed & signed,
  3. Be acknowledged, and
  4. Be recorded with the county clerk & recorder.  (Click here for El Paso County).

 

More Information

Colorado's Designated Beneficiaries Law.  A site with FAQs and forms.