LEGAL LIMITS FOR CREDITORS TO FILE LAWSUITS TO COLLECT
California has a special statutes of limitation dealing with claims against deceased persons. This rule bar any lawsuit on a liability (debt) of a deceased person unless the lawsuit is filed before the first anniversary of the decedent’s death. This one-year legal limit applies to debts which were owed by the trustors of a living trust. This would not apply to secured debt such as mortgages, or vehicle loans. Creditors need to act quickly to protect their claims. However, in the same regard, the acting trustee(s) must be sure to not pay claims that are barred by the one year limit. Due to this one year limit, the trustee are generally unable to safely payout the trust assets to the beneficiaries before the one year expires, without certain precautions or disclosures.
There are ways to cut down the claim period from one year to approximately 4 months.
SINCE THE GOVERNMENT MAKES THE RULES THERE IS AN EXCEPTION FOR TAXES – TAX EXCEPTION: The one year limit or the optional 4 month claim deadline does not apply to money owing to the Internal Revenue Service for taxes.
Our office is able to assist trustees and beneficiaries of California Trusts. We have extensive experience with drafting, amending, and administering California Trusts. Feel free to contact our office(s) at
(951) 226-5294 – Menifee, California or (951) 688-3800 – Riverside, California