Legal Question in Wills and Trusts in California
trusts
Can a trust come with debt attatched?
Asked on 7/09/09, 7:00 pm
1 Answer from Attorneys
Frankie Woo
Fiducia Legal
Re: trusts
Sometimes the trust will instruct the trustee to pay off all debts before distributing the remainder to the beneficiaries.
If the debts exceed the assets, the creditors cannot go after the trustee or the beneficiaries for the difference. However, depending on the situation, the creditors of the settlor could still go after the trust assets.
Answered on 7/16/09, 5:28 pm