Colorado Water Rights in Estate Planning
Feb 12, 2024
Colorado Water Shares: Avoiding Abandonment on Transfer
Failing to properly file a change-of-ownership notice can result in the loss or forfeiture of valuable ditch company shares in Colorado. Water rights and shares are often separate from the land itself, and their transfer requires careful attention to both legal and procedural details.
Use escrow instructions: When buying or selling property with water shares, include escrow instructions that require the immediate assignment and transfer of shares at closing. This helps ensure the shares are not overlooked and that the new owner is properly recorded with the ditch company.
Draft powers of attorney: Consider preparing a power of attorney that authorizes someone to file necessary documents with the division engineer or ditch company on your behalf. This can be especially helpful if you are unavailable at closing or if filings must be made quickly to avoid delays or abandonment.
Caveat: Each ditch company may have its own rules and deadlines for recording share transfers. Failing to comply with these requirements can lead to shares being considered abandoned or transferred to another party. Always confirm the specific procedures with the relevant ditch company and the Colorado Division of Water Resources. In some cases, additional filings with the county or state may be required to fully protect your rights.
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Disclaimer: This blog post provides general information for educational purposes only. It is not legal advice. Outcomes can vary based on your personal circumstances and the evidence available. Always review your options carefully before making decisions about water rights or share transfers.