Can creditors reach revocable trust assets after the owner dies?

Georgia links recovery to an inadequate probate estate

Georgia makes property of a trust that was revocable at death subject to estate creditors to the extent the probate estate is inadequate. The rule also covers a trust that became irrevocable through the settlor's incapacity.

Wisconsin bars specified collection methods

Wisconsin bars garnishment, attachment, execution or levy against trust property for judgments against a deceased settlor or the trustee. Mortgages, pledges, liens and other security agreements remain enforceable against trust property.

Wisconsin provides that a tort or contribution cause of action against a deceased settlor is not defeated by failure to file the claim or commence an action against the trustee by the trust claims deadline.

Utah provides for creditor notice and payment order

Utah's published creditor notice for a revocable trust must tell creditors to present claims within three months after first publication or be forever barred.

Utah sets the payment order when a settlor's estate or trust is insufficient. Funeral expenses come first, followed by administration costs, federally preferred debts and taxes, then last-illness medical expenses.

Practitioners describe non-probate claims

Practitioners say some states authorize creditor recovery from non-probate beneficiaries. Practitioners describe successful recovery as rare because creditors often lack information and collection takes effort.

Practitioners note trustees address valid creditor claims before distributing trust funds and could be personally liable for debts if they fail to do so.