Notices, creditors, and why you shouldn't distribute too fast

Both probates and trusts involve dealing with the deceased person's debts before heirs get theirs.

In probate, known creditors get formal notice and a window to file claims. In trust administration, the trustee can use an optional creditor-claim procedure to cut off late claims, or simply pay known debts.

One creditor surprises families: Medi-Cal estate recovery. If the deceased received certain Medi-Cal benefits after age 55, the state may seek repayment from the estate — though current law limits recovery to estates that pass through probate, which is one more reason trusts matter.

The practical rule for trustees and executors: don't distribute everything the week the house closes. Hold a reasonable reserve until taxes and claims are resolved — a trustee who distributes too early can end up personally liable for a bill that arrives later.

General education, not advice — verify anything you’ll rely on with a CPA or estate attorney.