Is a trust liable for deceased person's credit card debt? There is a poor over will as well.
4 Answers from Attorneys
If it is a typical revocable trust, yes.
Yes, the debt should be paid as part of the trust administration process. Notice of the administration should be sent to all ascertainable creditors as well as the statutory required state agencies. The creditors will then have 120 days to submit their claims which can either be paid, negotiated or rejected by the Trustee. Note, to reject, the Trustee must believe the debt is not owed and be prepared to litigate that position.
I would agree with all of the above answers. However, a Trustee can be personally liable for losses by a third party during estate administration. The Trustee may want to obtain advice from a local attorney to avoid any potential personal liability.