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That depends on some details, the nature of the debt and your own moral compass.
If the money was loaned to you and purposely not expressed in a written promissory note the argument could be mede that the decedent didn't expect to be repaid in the case of death. However, if the decedent was in the habit of making loans, not putting them in writing and yet expecting to be repaid, and other family members were aware of the loan made to you, then not paying the loan back may cause a family rift.
You cannot be forced to repay a loan for which there is no written evidence. Since you know the family situation and whether not repaying the loan will affect your relationship with other family members, it is up to you to decide.
What else can I help you with?
Must an unwritten debt to deceased parents be paid by a daughter to the estate in irrevocable trust?
In reality, if there is no written proof of the debt, the estate cannot collect.
How do you execute an irrevocable trust?
Trust law is one of the most complex areas of law. Professionals spend years learning about trust law and must keep up to date with changes in the laws that come forth every year. A trust expert must also be an expert in tax law and estate planning. You need to consult with an expert if you are contemplating an irrevocable trust. The attorney can review your situation and explain the costs and your options.
Can you borrow from an Irrevocable Trust?
You must review the provisions in the trust document to determine if the trustee can make loans.
Are children responsible for credit card balances of a deceased parent in Massachusetts There is a living trust. No mortgage.?
The Uniform Trust Code contains provisions relating to liability of a revocable trust for payment of the grantor's debts. The definition of revocable clarifies that revocable trusts include only trusts whose revocation is substantially within the grantor's control. The trust remains revocable until the grantor's death. Upon the death of the grantor the trust becomes irrevocable and not responsible for the payment of the grantor's debts. Any assets of the estate are not protected from debts, as the now irrevocable trust's are, and must be used to pay debts until the estate, not the trust, becomes insolvent.
Can you sell assets out of a irrevocable trust?
You must look to the trust for your answer. A trust document contains all the provisions necessary for the management of the trust by the trustee. There should be provisions for the sale of assets by the trustee. Those provisions must be followed.
Must an unwritten debt to deceased parents be paid by a daughter to the estate in irrevocable trust?
In reality, if there is no written proof of the debt, the estate cannot collect.
Can real estate that is deeded to an irrevocable trust be sold by the owner?
Absolutely not. The person who transferred the property to an irrevocable trust no longer owns the property. Their deed would be null and void. The trust can sell the property as long as that power was granted to the trustee in the Declaration of Trust. For an effective transfer of the property the deed of transfer must be executed by the trustee.
How do you execute an irrevocable trust?
Trust law is one of the most complex areas of law. Professionals spend years learning about trust law and must keep up to date with changes in the laws that come forth every year. A trust expert must also be an expert in tax law and estate planning. You need to consult with an expert if you are contemplating an irrevocable trust. The attorney can review your situation and explain the costs and your options.
Can a loan be obtained against real estate property to initiate repairs if that property is secured in an Irrevocable Trust?
Yes. The trustee must sign the mortgage as the owner of the property.
How do you terminate an irrevocable trust agreement?
A well-drafted trust instrument should contain language that directs the manner by which the trust will be terminated. Those directions must be followed. If the trust document is not clear then a court must make a determination especially if the trust holds title to real estate. You should seek the advice of an experienced trust attorney.
Is it possible to arrange an irrevocable trust with the same person as grantor trustee and beneficiary?
You cannot have the same person as grantor, trustee and beneficiary in any trust. There is no trust created in such a set up. The grantor in an irrevocable trust cannot be the trustee. The property in an irrevocable trust must be permanently separated from the grantor's control.
In a non revocable trust can your spouse be the trustee without negating the protection of assets?
You should direct all trust questions to an attorney who specializes in trust law in your state. Any trust must be drafted by an expert. The only foolproof way to protect assets from taxes and creditors is an irrevocable trust. An irrevocable trust only works if it is drafted properly. You should shop around for an expert is estate planning with a good reputation.
Can you borrow from an Irrevocable Trust?
You must review the provisions in the trust document to determine if the trustee can make loans.
Must a child pay a debt to a deceased mother through an estate in an irrevocable trust?
The estate is required to collect on all monies owed it. And to pay off any debts. If the estate cannot do so, they distribute as best they can. If the court approves the distribution, the debts are ended.
Can you sell a home that is in an irrevocable Trust?
You need to review the language in the document that created the trust for your answer. ALL the provisions of a trust and the powers of the trustee must be set forth in the trust document. You would be looking for the section dealing with trustees powers and under that the power to sell and convey real estate.
What are the disadvantages to an irrevocable trust?
Irrevocable trusts are extremely complex. The trust must be drafted by an attorney who specializes in trust law and estate planning in your state. Errors made in the drafting of trusts can be extremely costly if the trust is later found to be invalid and the estate of the grantor must be probated. It is quite common to find invalid trusts drafted by general practice attorneys and also attorneys who do advertise a specialty in trust law. You have to be careful to choose one with a good reputation and the legal fees may be high. Once your property has been transferred to the trust, for consideration, the transfer is permanent. Your own control over your property is lost and you cannot get your property back. An irrevocable trust requires an annual accounting and may require the filing of a tax return. There may be fees due to the trustee.
Does an irrevocable trust remove an asset from Medicaid consideration after the 5 yr lookback period?
It should but the trust must be drafted by an attorney who specializes in estate planning, tax law and trust law. Errors in the drafting of that type of trust will leave the trust property exposed and can cause costly problems down the line.
