Legal Question in Wills and Trusts in California
Who is responsible for estate debts
The estate is in a trust. There are four benificiares. One beneficiary is to receive a condo. The other three beneficiares have equal shares in a stock/bond fund. Until the estate is settled, who is responsible for expenses, such as condo homeowners fees, insurance, the deceased hospital bills, etc?
2 Answers from Attorneys
Re: Who is responsible for estate debts
In order to provide a complete and correct answer to this question the trust agreement must be reviewed. The trustee is responsible for paying expenses of the trust from the (income and) assets of the trust. How the expenses are allocated and how this affects the beneficiaries depends upon the language of the trust and California trust law.
SEE
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=prob&group=15001-16000&file=16000-16015
UNIFORM PRINCIPAL AND INCOME ACT - Califorina Probate Code Sections 16320-16375
Re: Who is responsible for estate debts
Such should be paid from the trust income/assets. Who drafted the turst? How much are the debts? There may be a problem if the debts are very high, explore all options, including having the bills compromised, call me directly at (619) 222-3504.
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