A compromise of any controversy as to admission to probate of any instrument offered for formal probate as the will of a decedent, the construction, validity, or effect of any probated will, the rights or interests in the estate of the decedent, of any successor, or the administration of the estate, if approved in a formal proceeding in the court for that purpose, is binding on all the parties thereto including those unborn, unascertained, or who could not be located. An approved compromise is binding even though it may affect a trust or an inalienable interest. A compromise does not impair the rights of creditors or of taxing authorities who are not parties to it.
Source: L. 73: R&RE, p. 1607, § 1. C.R.S. 1963: § 153-3-1101.
ANNOTATION
Law reviews. For article, "Avoiding Litigation in Probate Estates", see 18 Colo. Law. 875 (1989). For article, "Court-Approved Trust Modifications—Binding Effect on IRS and Tax Consequences", see 41 Colo. Law. 55 (June 2012). For article, "Dealing With a Decedent's Mineral Interests", see 44 Colo. Law. 53 (Feb. 2015).
Execution of agreement settling will contest under this section was binding on all parties where all parties agreed to compromise of controversy and agreement was approved in formal proceeding. Matter of Estate of Barnard, 867 P.2d 47 (Colo. App. 1993).
Court may properly approve a settlement agreement even over the objection of one of the petitioner beneficiaries, provided the court's determination is fair, reasonable, and in the parties' best interests. The principle is similar to that behind a shareholder derivative suit, where the plaintiffs are acting as representatives of the corporation and the court is charged with protecting the interests of the corporation as a whole. Saunders v. Muratori, 251 P.3d 550 (Colo. App. 2010).