Legal Question in Wills and Trusts in Nevada
Judgments on a trust, must I pay?
I recently became the trustee of an estate in Nevada. All the deceased's property were included in the trust. The deceased did, however, get into an auto accident and judgements were won aginst him: one in small claims and another in another court. I am not sure if the judgements pre or post dated the trust. I do know the cases are still active in the courts. Now, I was told that, with respect to a trust, after an individual's death, these judgements are no longer enforceable and that they do not transfer to the trust.
1)My minor daughter is the sole beneficiary of the trust.
2)The trust was from my divorced wife's boyfriend.
3)He murdered my ex-wife and then committed suicide.
4)After the bills are paid and all assets liquidated, about $20,000 will be generated.
5)Squaring his Judgment will only leave $4,000
6)I am an advocate of my daughter and feel that under the circumstances I should do all that is possible to maximize her benefits.
7)If it comes to paying my daughter for her murdered mothers sake or make good on the judgments...well if the law says the judgment is unenforceable with respect to the trust, I will take that road.Help
2 Answers from Attorneys
Re: Judgments on a trust, must I pay?
As the successor trustee you are the advocate for the beneficiary. Did the Trustor (deceased) die before or after the judgments? Was the trust a revocable or irrevocable trust at the time of his death? Once the trustor dies the trust should become irrevocable. If the trustor was uninsured at the time of the accidents. Then the other parties involved in the accidents may recover against their uninsured and underinsured motorist coverage. If the deceased trustor had car insurance. Then his insurance company will continue defending the cases. If there were two independent accidents. The full automobile policy limits were in effect in both accidents. The law turns on the facts. Change one fact, and the legal result can change. I believe to properly answer your question the questions I posed will have to be answered.
Re: Judgments on a trust, must I pay?
The answer depends on many factors, so all would have to be reviewed. Did the deceased have auto insurance? If so, that should pay. If not, perhaps the other parties' uninsured/underinsured auto coverage would pay. Also, some things are protected from creditors, like life insurance proceeds and sometimes pension benefits. The answer would also depend on when the trust became irrevocable and when the property was put into the trust. Consult a Nevada attorney to review the facts and give you your options.
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