He had a living trust & a pour over will. The TS was in his name only & never transferred to the trust. We have liquidated his estate and this is the last asset remaining. No heir wants this property. We do not want to go thru probate to transfer the title into the trust. Is there any estate or trust liability for this property? Are the trustees or heirs personally liable for the property? If we disperse the trust funds to the heirs is there any possibility of having to pay back money to the estate for any claims from the TS HOA? Can we just walk away from the TS property and let the HOA foreclose on it? The trustee paid the 2012 dues. Does each heir need to disclaim any inheritance/ownership of this property? Also, can any bad credit flow to any trustee or heir for nonpayment of the HOA
Did you consider selling in a secondary market? Even if for little money?
You can likely collect by Affidavit (under $150K).
The successor Trustee has a duty to follow the express instructions in the Trust Declaration as long as it is in the overall best interest of the beneficiaries of the Trust. If no beneficiary wants this TS, and there is no real market value here, you shold get a written awaiver from all beneficiaries that they do not want this asset. As Trustee, you can elect not to spend Trust assets on obtaining this property into the Trust. The TS HOA may have a claim for damages against the deceased owner's estate, but not the Trust. As Trustee, you can decide, according to the terms of the Trust, which debts to pay, ot not. Since a probate has not been opened, and appears will not be, the TS HOA has no present forum in which to present a claim. Absent actual fraud, Trustees are not personally liable for any debts of the decedent or the Trust.
Richard A. Rodgers, Esq.
200 N. Westlake Blvd. Ste 201
Westlake Village, CA 91362
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