My best friend passed away and had a living trust with me as trustee. His condo we shared was in the trust with its reverse mortgage. I'm selling it and using the proceeds after paying it off, to find a new place to live with a little to live on until I find work again. I took care of him for 4 years, and that was my job. His sister inherited his annuity of $80.000. He probably thought I would spend it and his sister would do the right thing and pay off any debt and tie up any lose ends. This was his wish and he said it more than once. Well, his sister is not intending on paying any of his debt. So I'm afraid they will come after what he left me. I'm also selling the mobile home he owned, we were told it didn't need to be put into the trust for it is considered personal property and not real estate, like the condo. How can I protect what he left me. It doesn't seem fair or legal that I could be homeless from creditors while she goes shopping without a worry in the world. That is why he had that money saved for his final expenses. So far they're being paid from my pocket, which I have very little of.
You do not have to use any of your assets to pay the decedent's debts, only his assets. If he does not have enough assets to pay his debts then they will not be paid. But you should stop paying them with your money.
Every thing that I am saying here is my opinion and it is not based on any particular case. My response is just unsupported general information. If it helps you to resolve an issue that's great but do not rely on it as legal advice because it is not based on the facts in your case and it is not based on any specific legal research. Answering this question creates no relationship between the writer and reader of the writing. I am not your attorney now, nor have I been on the past. If you just want to comment please do that on AVVO where the price is $0.00. I do typically respond to all AVVO comments.
She has no obligation to pay from the annuity if she was named beneficiary. Your friend did not plan well if he wanted the annuity to be used for debt. The bottom line is secured debt must be paid from the asset it was secured by. Unsecured creditor's may be out of luck but you might want to discuss that with an attorney. As stated however, do not pay the debts from your money - only from the trust/estate assets.
I am sorry for your loss. How long ago did your friend pass? The law provides time limits to sue on the liability of a decedent under CCP 366.2. If you know who is alleging money is owed, and your friend passed less than a year ago, the Probate Code has a procedure to process creditor claims through the Court. Many times creditors may not file a claim with the Court and then lose the ability to sue to collect. I would think hiring a good probate litigation attorney would help you resolve the credit claims.
Again, I am sorry for your loss. Sounds like you were a good friend to the decedent and I hope this works out for you. I wish you well.
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