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Barrister
Barrister, Attorney
Category: Estate Law
Satisfied Customers: 33726
Experience:  15 yrs estate law, real estate. Wills/Trusts/Probate
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I'm the trustee deceased son's irrevocable trust. He had no

Customer Question

I'm the trustee for my deceased son's irrevocable trust. He had no complex holdings, partnerships or real property other than his house. How long a period can liens or claims be made against the trust. I am also executor for his will and put a notification in the paper after his passing and directing any claims to the court. As far as I can ascertain, all medical and other bills have been paid and accounts closed. I would like some assurance that I can distribute assets to the beneficiaries without recourse of being liable for future claims.
Submitted: 11 months ago.
Category: Estate Law
Expert:  Barrister replied 11 months ago.

Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes and ordinances and type out an answer or reply, but rest assured, I am working on your question.

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If this was an irrevocable trust, then it wouldn't be considered part of son's estate and therefore wouldn't be subject to any creditor claims against his estate. With a revocable trust, those assets are included in the estate, but with an irrevocable, the grantor forever gives up any incidents of ownership of those assets and they are beyond both their reach as well as any creditors.

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So any creditors would not be able to place any claim against the assets held by an irrevocable trust. This is one of the primary reasons that people use irrevocable trusts rather than revocable ones.

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Estate creditors or creditors son owed a debt to can only make claims against assets that were in his sole name when he passed or that were created prior to any assets being transferred into the irrevocable trust.

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If there is some question about whether any debt was created prior to assets being transferred into the trust then the default time in TX is 4 months after the estate was opened and the notification put in the paper.

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So the outer limit is 4 months from the publication of the notice.

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thanks

Barrister

Customer: replied 11 months ago.
If it has a bearing on your response, my son's trust was a revocable and became irrevocable when I became trustee. I understand thats an automatic action upon his death.
Expert:  Barrister replied 11 months ago.

Ok, that makes a difference initially because it was not an irrevocable trust while he was living. So those assets would be included in his estate and be subject to creditor claims. It would have to be irrevocable while he was living in order to be exempt from their claims.

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But regardless, the 4 month creditor claims period still holds true here and if you are past that, then you are free to distribute assets since any further creditor claims are barred.

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thanks

Barrister

Customer: replied 11 months ago.
The estate lawyer that I dealt with said that since David's trust was simple, the statute of limitations could be as short as two years. He could not provide any factors that would support that determination. I like your answer better.
Customer: replied 11 months ago.
Since I can't use your answer to support a legal position, can you provide information where I can find legal documentation that I can use to support that limitation?
Expert:  Barrister replied 11 months ago.

That is what I was tracking down for you.... Here is the specific TX statute for your reference:

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TX Probate Code

Sec. 355.152. PERIOD FOR SPECIFYING TREATMENT OF SECURED CLAIM. (a) A secured creditor may present the creditor's claim for money and shall specify within the later of six months after the date letters testamentary or of administration are granted, or four months after the date notice required to be given under Section 308.053 is received, whether the claim is to be allowed and approved under Section 355.151(a)(1) or (2).

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Texas Probate Code §146(a)(1) requires an independent executor to provide notice pursuant to §§294-295 and now §146(a)(2) provides that the independent executor may give the permissive notice to unsecured creditors which is allowed under §294(d) and bar a claim under that subsection.

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thanks

Barrister

Customer: replied 11 months ago.
Thanks, ***** ***** Good!
Expert:  Barrister replied 11 months ago.

You are very welcome.

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Barrister

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