Legal Question in Wills and Trusts in Arizona

Re: Living Trust Debts

The question depends upon who owns the car and signed for the loan. Did your aunt buy the car and sign for the loan or did your aunt act as trustee of a trust, buy the car as trustee and title/ownership of the car is in the name of the trust? If the trust was the borrower, then the lender could go after the trust assets. I suggest that you bring the car to the finance company, and tell them the situation. Possibly, they will not go after the balance. If your aunt bought the car, the finance company can still make a claim in probate.

Re: Living Trust Debts

I will give a different opinion. Even if your aunt financed the car through a trust (unusual) her trust and her estate outside the trust could be liable for repossession charges, penanties, unpaid payments and the difference between what the car is auctioned off for (maybe very low) and the amount owed.

Beware. This could be problematic. No opinion can be rendered here without a complete knowledge of all the facts of the trust and estate and a review of the trust and other estate documents, as well as the loan documents. See an estate attorney for a consultation to get specific legal advice. I cannot fully advise you here. See our blog at JenkinsLawCenter.blogspot.com for more information.

Best regards,

James D. Jenkins

Disclaimer: This is general information, not legal advice in your particular case, and not intended to create any attorney-client relationship, but is only aducational information supplied in response to an anonymous message sent though LawGuru.