QUESTION
Is the trust responsible for paying off the outstanding medical bills?
Asked on Dec 10th, 2012 on Estate Planning - Michigan
18 ANSWERS
Business Planning Attorney serving Livonia, MI
at
Frederick & Frederick Attorneys at Law
Update Your Profile
Yes. The trust would pay.
Answered on Dec 14th, 2012 at 12:25 AM
Probate Attorney serving St. Louis, MO
at
Edward L. Armstrong, P.C.
Update Your Profile
It depends on what the trust says. If your sister's estate has only assets that are going to go into the trust, her debts would have to be taken care prior to the transfer of those assets to the trust. If the assets were already in trust at the time of her death and the trust is the only source of assets owned by your sister, the trust may have to take responsibility for those debts.
Answered on Dec 14th, 2012 at 12:18 AM
3 Awards
A notice to creditors needs to be done to address claims. The trust will be responsible for timely and appropriate debts. Her successor trustee should speak with an attorney to assist in this regard.
Answered on Dec 13th, 2012 at 10:00 PM
Trusts Attorney serving Sacramento, CA
at
Law Office of Victor Waid
Update Your Profile
Generally, yes, as the creditors of the deceased are entitled to notice of death and to make a claim against the trust or estate if in probate court; creditor claims can be negotiated out and downward.
Answered on Dec 13th, 2012 at 9:30 PM
Business Litigation Attorney serving Orange, CA
at
Law Offices of Frank Granato
Update Your Profile
Depends on the terms of the trust.
Answered on Dec 13th, 2012 at 9:19 PM
Alternative Dispute Resolution Attorney serving Baltimore, MD
at
Whiteford, Taylor & Preston L.L.P.
Update Your Profile
It depends on when and how the assets passed to the trust. The medical providers would have a claim against her estate, but might not have a claim against the trust.
Answered on Dec 12th, 2012 at 2:14 PM
Shadi Ala'i AlaiShaffer
Yes. The Trust generally speaking is suppose to do this so long as there are assets under the trust.
Answered on Dec 12th, 2012 at 12:08 PM
The Trust must be reviewed to answer your question, but most trusts provide for the payment of final expenses.
Answered on Dec 12th, 2012 at 12:08 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
I would certainly have to look at the documents, but generally yes.
Answered on Dec 12th, 2012 at 12:07 PM
Your sister's estate is responsible for paying off all of her bills and expenses prior to the assets being distributed. If her estate is held by a trust, then the trust would have to provide the funds.
Answered on Dec 12th, 2012 at 12:07 PM
General Civil Trial Practice Attorney serving Oklahoma City, OK
Partner at
Denker & Associates, PLLC
Reviews not shown
1 Award
Most Likely. It will depend on the will and/or trust document. Usually, they require the payment of the decedent's debts before distribution to the heirs. However, many medical bills are negotiable on the amount to be paid, or sometimes the medical providers fail to submit their claims timely after receiving notice.
Answered on Dec 12th, 2012 at 12:06 PM
1 Award
It is important to review the terms and details of the trust as well as when and by whom it was set up. I would speak with an attorney.
Answered on Dec 12th, 2012 at 12:06 PM
Elder Law Attorney serving Hollister, CA
at
Charles R. Perry
Update Your Profile
Your sister's estate is responsible for paying her outstanding medical bills. If all of your sister's assets went to a trust, then the trust must pay the medical bills from those assets.
Answered on Dec 12th, 2012 at 12:05 PM
Dependent on the trust as drafted, but likely yes would be responsible for paying any outstanding accounts for the settler.
Answered on Dec 12th, 2012 at 12:05 PM
Business Law Attorney serving Livonia, MI
at
Gerald A. Bagazinski
Update Your Profile
If you are the trustee, you need to publish a notice to creditors. The Trust will be responsible for the debts.
Answered on Dec 12th, 2012 at 12:04 PM
Thomas Edward Gates
No, the estate is. The trust is a separate identity holding assets that have been transferred by your sister to it, thus giving up right of ownership.
Answered on Dec 12th, 2012 at 12:03 PM
Estate Planning Attorney serving Las Vegas, NV
at
Law Offices of Pamela R. Lawson
Update Your Profile
Yes, the estate is responsible for paying the medical bills for her last illness that are not covered by insurance or other coverage, as well as any other valid claims from creditors. This is most likely not what you wanted to hear, but the claims may be negotiable.
Answered on Dec 12th, 2012 at 12:03 PM
Probably, review the trust. Are you the trustee?
Answered on Dec 12th, 2012 at 12:02 PM