Idaho Law Blog

By Lane V. Erickson, Attorney

Estate planning is as unique as the individuals who seek to have it completed. What I mean by this statement is that there is no single estate plan that will work for every individual. Rather, and estate plan should be as unique as the individual for whom it is created. This allows that individual to take into consideration their own personal circumstances, the circumstances of their loved ones, and the changes that may occur in the future that could impact their lives. For this reason, completing a consultation for your estate planning could be vital. Here are the 3 main reasons to complete a free estate planning consultation.

1. ITS FREE

By Matthew P. Stucki

There are numerous reasons that an individual, known as a Grantor, may decide to use a living trust as the vehicle to transfer his or her property upon death. In most living trusts, the Grantor directs the Trustee to settle with the Grantor’s creditors before distributing the property in the living trust to the beneficiaries. In several states, dealing with creditors of a trust upon the death of a Grantor, is a streamlined process wherein the Trustee provides notice to the creditors through publication or by written statement. Once notice has been provide, the creditor has a limited amount of time to file a claim against the living trust or forever be barred from making a claim. Once barred, the Trustee is free to distribute the trust property to the beneficiaries without the fear of creditors making a claim. In the end, this process protects the Trustee.

Unfortunately, Idaho does not have similar statutes. In an effort to bring about certainty, some practitioners will file a probate when the Grantor of a living trust dies in hopes of taking advantage of the creditor notice statutes under probate law. Once notice is properly provided, creditors are barred from making a claim against the estate. Some would argue that this also bars creditors from coming after trust property as well. Other practitioners will seek an order from a Judge attempting to bar creditors from collecting against a trust after notice is properly given under the probate laws. Still others will advise that it is the best course of action for the Trustee to perform his or her due diligence and discovery all the creditors so that they can properly be dealt with one at a time.

By Matthew P. Stucki

On of the main responsibilities of the personal representative of an estate is to deal with the decedent’s creditors. The first step to start identifying who the decedent’s creditors are would be to examine the decedent’s mail and personal documents. The next step would be to call the major utility companies, including gas, power, trash, and cable to see if the decedent has any open accounts. Lastly, an examination of the decedent’s bank accounts may give some indication of the names of different creditors. In today’s world, it is becoming increasingly difficult to determine creditors as a growing population is conducting their business on the computer. However, these three steps often lead the personal representative to the decedent’s creditors.

Once creditors are identified, there are two ways, according to Idaho Code, to give notice to creditors of the requirement to present their claims against the estate. The first method is by a series of publications in the newspaper that should take place immediately upon getting named as personal representative. After four months, all unknown creditors are forever barred from bringing a claim against the estate if notice is properly published. The second method is by giving actual written notice to known creditors. Upon written notice, the creditor has 60 days from the date of written notice or 4 months from publication in the newspaper, whatever is later, to file a claim.

By Lane V. Erickson, Attorney

As an attorney my job is to apply my expertise, knowledge and experience to help individuals in Idaho solve their Estate Planning and probate problems. Often, when I meet with individuals, they have a series of questions that are specific to their circumstances. I really enjoy when clients come in with specific questions because then I feel like I can help them solve their actual problems and concerns. One question I am often asked by my more affluent clients is that when they own property in different state how does probate work?

1. ORIGINAL PROBATE FILED WHERE PERSON RESIDED