Section § 19000

Explanation

This section explains specific terms related to claims and trusts when a person who could change a trust dies. A 'claim' refers to requests for payment like the deceased's liabilities or funeral costs, excluding disputes over property titles. A 'creditor' is someone who has a claim against trust assets. A 'trust' is defined here as one that could have been altered by the deceased. 'Debts' are all claims and administration costs against the trust, including taxes. 'Probate estate' is the estate managed under specified legal rules, while a 'trust estate' is the deceased's property managed by the trust's trustee.

As used in this part:
(a)CA Probate Code § 19000(a) “Claim” means a demand for payment for any of the following, whether due, not due, accrued or not accrued, or contingent, and whether liquidated or unliquidated:
(1)CA Probate Code § 19000(a)(1) Liability of the deceased settlor, whether arising in contract, tort, or otherwise.
(2)CA Probate Code § 19000(a)(2) Liability for taxes incurred before the deceased settlor’s death, whether assessed before or after the deceased settlor’s death, other than property taxes and assessments secured by real property liens.
(3)CA Probate Code § 19000(a)(3) Liability for the funeral expenses of the deceased settlor.
(b)CA Probate Code § 19000(b) “Claim” does not include a dispute regarding title to specific property alleged to be included in the trust estate.
(c)CA Probate Code § 19000(c) “Creditor” means a person who may have a claim against the trust property.
(d)CA Probate Code § 19000(d) “Trust” means a trust described in Section 18200, or, if a portion of a trust, that portion that remained subject to the power of revocation at the deceased settlor’s death.
(e)CA Probate Code § 19000(e) “Deceased settlor” means a deceased person who, at the time of his or her death, held the power to revoke the trust in whole or in part.
(f)CA Probate Code § 19000(f) “Debts” means all claims, as defined in subdivision (a), all expenses of administration, and all other proper charges against the trust estate, including taxes.
(g)CA Probate Code § 19000(g) “Probate estate” means a decedent’s estate subject to administration pursuant to Division 7 (commencing with Section 7000).
(h)CA Probate Code § 19000(h) “Trust estate” means a decedent’s property, real and personal, that is titled in the name of the trustee of the deceased settlor’s trust or confirmed by order of the court to the trustee of the deceased settlor’s trust.

Section § 19001

Explanation

When someone who created a trust (the settlor) dies, any property they could have revoked at the time of their death is used to pay off their debts and the costs to administer their estate, if the estate itself doesn't have enough to cover these costs. The settlor can specify in the trust document how debts should be paid, but they can't change the order of payment for certain priority expenses, which are outlined in another section of the law.

(a)CA Probate Code § 19001(a) Upon the death of a settlor, the property of the deceased settlor that was subject to the power of revocation at the time of the settlor’s death is subject to the claims of creditors of the deceased settlor’s probate estate and to the expenses of administration of the probate estate to the extent that the deceased settlor’s probate estate is inadequate to satisfy those claims and expenses.
(b)CA Probate Code § 19001(b) The deceased settlor, by appropriate direction in the trust instrument, may direct the priority of sources of payment of debts among subtrusts or other gifts established by the trust at the deceased settlor’s death. Notwithstanding this subdivision, no direction by the settlor shall alter the priority of payment, from whatever source, of the matters set forth in Section 11420 which shall be applied to the trust as it applies to a probate estate.

Section § 19002

Explanation

This law section states that creditors can still claim against a revocable trust set up by a deceased person, unless there's a specific rule that says otherwise.

Additionally, this law doesn't change any existing procedures for handling claims against an estate, as detailed in another section of the law.

(a)CA Probate Code § 19002(a) Except as expressly provided, this part shall not be construed to affect the right of any creditor to recover from any revocable trust established by the deceased settlor.
(b)CA Probate Code § 19002(b) Nothing in this part shall be construed as a construction or alteration of any claims procedure set forth under Part 4 (commencing with Section 9000) of Division 7.

Section § 19003

Explanation

If someone who created a trust (the settlor) passes away, the trustee (who manages the trust) can notify creditors about claims against the trust, as long as they haven't been told of a probate proceeding. The trustee must file a notice with the court where the settlor lived or where the trust's property is located. They'll then publish and serve this notice to creditors according to specific legal guidelines to inform them of their rights and obligations. This ensures that creditors know how to make their claims.

Additionally, this doesn't change any requirements for notifying public entities about claims or requests.

(a)CA Probate Code § 19003(a) At any time following the death of the settlor, and during the time that there has been no filing of a petition to administer the probate estate of the deceased settlor in this state of which the trustee has actual knowledge, the trustee may file with the court a proposed notice to creditors. Upon the court’s assignment of a proceeding number to the proposed notice, the trustee shall publish and serve notice to creditors of the deceased settlor in the form and within the time prescribed in Chapters 3 (commencing with Section 19040) and 4 (commencing with Section 19050). That action shall constitute notice to creditors of the requirements of this part.
(b)CA Probate Code § 19003(b) The filing shall be made with the superior court for the county in this state where the deceased settlor resided at the time of death, or if none, in any county in this state in which trust property was located at the time of the settlor’s death, or if none, in the county in this state that was the principal place of administration of the trust at the time of the settlor’s death.
(c)CA Probate Code § 19003(c) Nothing in subdivision (a) affects a notice or request to a public entity required by Chapter 7 (commencing with Section 19200).

Section § 19004

Explanation

This section explains that if a trustee follows the proper steps for notifying potential claimants against a trust, then certain rules apply. First, any claims against the trust must be filed correctly and within a specific time period. If a claim isn't filed as required, it cannot be collected from the trust's assets. Furthermore, anyone with a claim must file it before they can take legal action against the trust to recover the claim.

If the trustee files, publishes, and serves notice as set forth in Section 19003, then:
(a)CA Probate Code § 19004(a) All claims against the trust shall be filed in the manner and within the time provided in this part.
(b)CA Probate Code § 19004(b) A claim that is not filed as provided in this part is barred from collection from trust assets.
(c)CA Probate Code § 19004(c) The holder of a claim may not maintain an action on the claim against the trust unless the claim is first filed as provided in this part.

Section § 19005

Explanation

This law gives the trustee the power to handle claims made against someone who has died. The trustee can pay the claim, reject it, argue against it, or settle it through negotiation or arbitration. If needed, the trustee can also use a formal process described in another section to resolve any disputes about the claim.

The trustee may at any time pay, reject, or contest any claim against the deceased settlor or settle any claim by compromise, arbitration, or otherwise. The trustee may also file a petition in the manner set forth in Chapter 2 (commencing with Section 19020) to settle any claim.

Section § 19006

Explanation

This law deals with what happens to a deceased person's debts when they had a trust. Section 19006 states that if a trustee of a deceased person's trust follows certain procedures to notify creditors, then other trusts set up by the deceased and their trustees and beneficiaries get protected from creditors too.

If the personal representative handling the deceased's will does a similar notification, they also get creditor protection for the trustees and beneficiaries of the trusts. Furthermore, if a probate process starts after the trustee files notices, the trustee can reclaim debt payments made from the trust assets if those debts should have been paid by the estate undergoing probate.

(a)CA Probate Code § 19006(a) If a trustee of a trust established by the deceased settlor files, publishes, and serves notice as provided in Section 19003 the protection from creditors afforded that trustee and trust shall also be afforded to any other trusts established by the deceased settlor and the trustees and beneficiaries of those trusts.
(b)CA Probate Code § 19006(b) If the personal representative of the deceased settlor’s probate estate has published notice under Section 8120 and given notice of administration of the probate estate of the deceased settlor under Chapter 2 (commencing with Section 9050) of Part 4 of Division 7, the protection from creditors afforded the personal representative of the deceased settlor’s probate estate shall be afforded to the trustee and to the beneficiaries of the trust.
(c)CA Probate Code § 19006(c) In the event that, following the filing and publication of the notice set forth in Section 19003, there shall be commenced any proceeding under which a notice pursuant to Section 8120 is required to be published, then the trustee shall have a right of collection against that probate estate to recover the amount of any debts paid from trust assets that would otherwise have been satisfied (whether by law or by direction in the deceased settlor’s will or trust) by the property subject to probate proceedings.

Section § 19007

Explanation

This law says that if a person who created a trust (settlor) has multiple trusts, these trusts are generally not responsible for each other’s debts. However, a trustee of one trust can challenge this if they follow a specific process: filing, publishing, and serving a notice. Then, they can ask the court to decide how the debts should be shared between the trusts.

Nothing in this part shall determine the liability of any trust established by the deceased settlor as against any other trust established by that settlor, except to the extent that the trustee of the other trust shall file, publish, and serve the notice specified in Section 19003 and thereafter seek a determination of relative liability pursuant to Chapter 2 (commencing with Section 19020).

Section § 19008

Explanation

If no one is handling the deceased person's estate through probate, and the trustee doesn't notify creditors via a proposed notice or publish a notice, the trust's responsibility to pay the deceased person's debts will be determined by other laws.

If there is no proceeding to administer the probate estate of the deceased settlor, and if the trustee does not file a proposed notice to creditors pursuant to Section 19003 and does not publish notice to creditors pursuant to Chapter 3 (commencing with Section 19040), then the liability of the trust to any creditor of the deceased settlor shall be as otherwise provided by law.

Section § 19009

Explanation

This law states that a trust's existence or its details can't be disclosed to creditors or beneficiaries unless they have a specific right to know that information. Essentially, it protects the privacy of trust details unless the law or the terms of the trust grant access.

Nothing in this part shall be construed to permit or require disclosure of the existence of the trust or the contents of any of its provisions to any creditor or beneficiary except as that creditor or beneficiary may otherwise be entitled to that information.

Section § 19010

Explanation

This law states that a trustee isn't required to start a notice proceeding as described in Section 19003. It also makes clear that the trustee won't be held responsible if they don't start the process.

Nothing in this part imposes any duty on the trustee to initiate the notice proceeding set forth in Section 19003, and the trustee is not liable for failure to initiate the proceeding under this part.

Section § 19011

Explanation

The Judicial Council can decide what the petition, notice, claim form, and allowance or rejection form should look like and include. The allowance or rejection of a claim might be part of the claim form itself.

The claim form must let the creditor know that the claim needs to be filed with the court and a copy sent to the trustee under Section 1215. The form should also have a section for the claimant to confirm that they delivered a copy to the trustee.

(a)CA Probate Code § 19011(a) The Judicial Council may prescribe the form and contents of the petition, notice, claim form, and allowance or rejection form to be used pursuant to this part. The allowance or rejection form may be part of the claim form.
(b)CA Probate Code § 19011(b) Any claim form adopted by the Judicial Council shall inform the creditor that the claim must be filed with the court and a copy delivered pursuant to Section 1215 to the trustee. The claim form shall include a proof of delivery of a copy of the claim to the trustee, which may be completed by the claimant.

Section § 19012

Explanation

This law states that if a person who created a trust (a settlor) dies on or after January 1, 1992, then any claims made against them are handled according to the regulations in place after that date. If the settlor passed away before January 1, 1992, however, claims are dealt with under the rules that were in effect before then.

(a)CA Probate Code § 19012(a) This part applies to claims against any deceased settlor who dies on or after January 1, 1992.
(b)CA Probate Code § 19012(b) The applicable law in effect before January 1, 1992, continues to apply to claims against any deceased settlor who dies before January 1, 1992.