Q: Parent passed away. Trust states to divide assets amongst children. There are debts.
Hello,
Parent left behind a trust and a will. The trust states that money owed to his estate, when it comes, is to be divided amongst the children. There are credit card debts however. Since the money was designated to go to the children, must we first satisfy the debt with this money first before making distributions to the beneficiaries?
Thank you.
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- Arizona
- (931) 250-8585
- View Profile
- Answered
A: The simple answer is most likely yes. More facts would be needed to give a definitive answer. My best advice is you should schedule a consultation with an experienced trust administration attorney.
David Gerszewski and Gregory Christopher Poulos agree with this answer
A:
Whether the estate is trust based or will based, the estate is responsible for payments of any debts against the estate. If creditors are known they must be paid unless there is some basis to question them. Additional notice to creditors needs to be published to notify other creditors.
Distributions cannot take place until the estate is settled.
David Gerszewski agrees with this answer
A: Generally speaking creditors and taxes (IRS) have to be paid before any distributions can be made. That is true for a Trust based plan or a will based plan in Arizona.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
