Legal Question in Wills and Trusts in California
living trust non-relative - can state take house if debt owed?
My friend was killed by a drunk driver in january 05. I am the trustee per a living trust. She has a living mother, etc. but trusted me with assets. House is paid for, but back taxes are owed, personal taxes are owed, and other debt total about 20,000. What do I do? House is supposed to go to partner and son, are they are I in danger of losing the house due to debt? Can mom contest the trust? Can I sue driver on her behalf for wrongful death. very confused
6 Answers from Attorneys
Re: living trust non-relative - can state take house if debt owed?
You can and probably should act on behalf of the estate to pursue action against the drunk driver. There are steps that you will have to take in that regard. Further, you need to find out whether there are assets that can potentially be recovered from the drunk driver and whether there was any insurance.
The debts will need to be paid before distribution of assets to the beneficiaries of the trust.
Re: living trust non-relative - can state take house if debt owed?
If you are very confused, I would suggest that you seek legal help. Trust administration is not that easy, and you could cause yourself some problems if not done right.
Re: living trust non-relative - can state take house if debt owed?
Your question raises a number of areas of law. Luckily, all of which are part of our regular practice in Trusts and Estates.
Yes, you, or the mother, can sue for wrongful death. However, another issue that is raised is the age of her son.
Much of what you ask is dependent on the terms of the trust instrument itself. It will tell you what powers you do and do not have as Trustee.
If you like, our office can take a cursory review of the trust as it pertains to your issues, free of charge of course, and then I can give you a better idea of what you need to do and if it is something you can accomplish without legal assistance.
If this is something you would find beneficial, please feel free to contact me at my office at (626) 578-0708 extension 4. I can also be reached through our firm's site at www.No-Probate.com.
Scott Linden
Re: living trust non-relative - can state take house if debt owed?
You efinitely half numbers numbers and issues which should be dealt with in person with an attorney who has a expertise in Probate/lititagation attorney. There is no question that you have a wrongful death claim against the driver, and who is hopefully insured. Additionally, you need advice as to the trust in dealing with the Internal Revenue Service and other issues. Do not sign anything, do not agree orally with anyone until you get good advice from a knowledgeable attorney who you have seen in person. Write all your questions down and take notes as to what he/she recommends to you. This is the best advice I can give you and you should act us soon as possible.I have been practicing law in the San Francisco Bay area for approximately 35 years and expert in the area in the category in which your question is placed. I feel I can help you in this matter and if you wish to consult with me please contact me at 925-945- 6000.
Re: living trust non-relative - can state take house if debt owed?
There are many things you can do. Yes you can sue driver. There are many protections and steps for you to take.
JOEL SELIK Attorney at Law
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Re: living trust non-relative - can state take house if debt owed?
in this situation the advice and assistance of an attorney is essential. please contact me if you are interested in an initial consultation to determine the scope of what is possible.