[WSBAPT] Suit Against Trust v. Opening Probate - Legal Leap

[Marcus Fry]

Paul:
I am one of the attorneys that asked the question.  First, to answer your questions about trusts, RCW 19.36.020 answers the question.  We do not have self-settled protection trust laws (there is about 15 states that do however).  You place your assets into a trust for your use and benefit, such assets will be available to creditors.  Second, I think the probate route is a good idea if you are unsure there is a trust because you get a personal representative appointed who then has authority to look into the affairs of the decedent and obtain trust documents, etc.  My situation was a little different as I knew there is a trust and I also knew that the trust owns assets, in my case real estate.  My question was whether I could just take legal action against the trust as a creditor of the decedent without having to go the probate route first because I am aware of the existence of the trust and the assets held by the trust.  I think I can because the trust continues in existence after death.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.
P.O. Box 1689
Yakima, Washington  98907
Telephone:  (509) 248-7220
Facsimile:  (509) 575-1883

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Paul Neumiller
Sent: Wednesday, February 15, 2017 9:14 AM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Suit Against Trust v. Opening Probate - Legal Leap

There has been a recent post asking how can a creditor collect from a rumored trust when the family doesn't open a probate.  Some have suggested that the creditor should open a probate.  But how does that work?  If all of the deceased's assets are in a trust (so the deceased, in effect, dies penniless) how does opening a probate get to the assets of the trust?  How does the personal representative/creditor even learn about the trust?  I know there must be a RCW somewhere that addresses this because if a person can frustrate the collection efforts of creditors by using a trust, we would all dump our assets into revocable trusts (I envision my wife power shopping at Nordstrom while I'm on my death bed.)  On a practical matter, would the creditor open the probate, bring a TEDRA action, and then use discovery to learn about the existence of the trust?

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