Message Font: Serif | Sans-Serif
No. of Recommendations: 0
[[So, Roy, in these western states, how is the process handled that provides for
creditors of the estate to file proofs of claim against the estate? ]]

I think that Edcosoft basically answered your question, George. But I'll add a few points.

In many cases, lenders will not lend when a "big ticket" item is purchased by the Trust (especially real estate). The lender will generally require the title of the asset (and the loan) to be placed in the name of the individual. And then the loan company will allow transfer of the asset to the trust. But at that time, the lender doesn't care: he has both the property and the individual on the line for payment.

And remember that a living trust (or in most cases, an irrevocable trust) will not allow you to decline payment for services with impunity. The debtor can STILL sue the estate/trust/beneficiaries if there are outstanding obligations that have not been taken care of during the administration of the trust.

It's just that the courts don't get involved directly.

TMF Taxes
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.