I was recently asked to address the question of whether or not a surviving spouse is liable for a deceased spouse's credit card debt. Assuming this is a small estate and there is no probate estate or a trust holding assets, the following three questions need to be answered: First, are you contractually liable for any of the credit card debts? If you and your spouse applied for the credit cards using your joint credit (applied for the card jointly), then both of you are liable for the debt. If … [Read more...] about Decedent’s Credit Card Debt
Prolonged Trust Administration
I was recently asked what the ramifications are for a trustee unduly prolonging a trust administration. The answer is that the legal ramifications will depend upon the circumstances. There is no set period of time during which the administration of a trust must be completed unless it is set forth in the trust document itself. If an estate tax return is due, it must be filed within 9 months after the date of death unless it is extended by filing an application with the IRS. There are also rules … [Read more...] about Prolonged Trust Administration
Preventing Fraudulent Changes in a Trust Document
I was recently asked how to prevent someone from fraudulently changing the terms of a trust by removing pages and inserting changes. The answer is, the wider the distribution of the trust's contents, the more difficult it is to commit fraud. Distributing multiple copies of the trust instrument will eliminate the possibility of the one and only copy being changed to meet some fraudulent goal. You can also record your living trust with the county recorder's office. Additionally, make sure that … [Read more...] about Preventing Fraudulent Changes in a Trust Document
Administration of a Living Trust
What needs to be done to administer a Living Trust when the trust creator (“Trustor”) passes away? Well, it could be virtually nothing at all, or it could be very involved. If the Trust only holds cash assets and stocks, it might be limited to distributing the cash and stock among the Trust beneficiaries. If it holds real property which is intended to be sold immediately, the title company will take care of much of the paperwork required at close of escrow, perhaps leaving only the distribution … [Read more...] about Administration of a Living Trust
What is Probate?
The court proceedings known as “probate” has one primary function, to change the legal title of assets held in the name of a decedent to the name of the new legal owners (the decedent’s heirs). Although there is much more to it than that, if it weren’t for the need to change legal title upon someone’s death, there would be no need to undertake a probate. Assets which will pass to the decedent’s lawful heirs without the need of doing a probate (in California) are: 1) life insurance and pension … [Read more...] about What is Probate?
