Arluk Medical Center Industrial Group, Inc. v. Dobler

Opinion

PERLUSS, P. J.

Pursuant to Probate Code section 19001,1 the assets in a revocable living trust of a deceased settlor are subject to the claims of the creditors of his or her probate estate to the extent the estate itself is inadequate to satisfy those claims. In light of this potential liability, does the trustee of such a trust have a duty, following the death of the settlor, to preserve trust assets for the benefit of creditors with claims pending against the deceased settlor’s probate estate? We hold the trustee’s only duty to such creditors is to refrain from affirmative misconduct…