If a house is held in trust, can it still be used to pay credit card debt or doesit transfer outside of the estate and perhaps not become eligible for collections of this type?
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If a house is held in trust, can it still be used to pay credit card debt or doesit transfer outside of the estate and perhaps not become eligible for collections of this type?
My father is on death’s doorstep. He has credit card debt in his name only, no spouse and no co-signers, etc. He has only 1 asset, a house, that is owned free and clear and is part of a living trust and to be given to 4 surviving children.
Asked on December 7, 2011 under Estate Planning, California
Answers:
Sharon Siegel / Siegel & Siegel, P.C.
Answered 12 years ago | Contributor
I am a NY lawyer. I assume from your question that the house produces income which you want to use to pay this debt. What you need to is have the successor trustee step up to the trustee position and act as such. The trust likely says, if your father is unable to ser then ... and appoints someone to serve. I suggest that you have the trust reviewed by a lawyer. Ultimately, the successor trustee will have to get lettrs of trusteeship to act and dispose of the property pursuant to the trust. I would happy to review the trust for you and I would not charge you for that. Sharon Siegel, Esq. 212-721-5300 www.siegelandsiegel.com
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