Ohio Allows Creditors Access to Revocable Trusts of Decedents

In Watterson v.Burnard, the Sixth District Court of Appeals of Ohio decided to allow arevocable trust created by a decedent prior to death to be subject to claims ofthe decedent’s creditors after the death of the decedent settlor.

Watterson filed a personal injury suit against Burnardfollowing an auto accident, but Burnard died while the suit was pending.  Prior to her death, Burnard created andfunded a revocable trust, which Watterson requested be made available tosatisfy any judgment he might obtain. The trial court found the trust’s assets ceased to be available to acreditor unless the credtor’s claim was reduced to a judgment before thesettlor’s death. 

The appellate court disagreed, concluding there was noreason to terminate the creditor’s access to the trust’s assets simply due tothe settlor’s death.  The court found theOhio legislature intended for even subsequent creditors to have access to adebtor’s assets in a revocable trust. 

See Kathy Sherby& Stephanie Moll, Creditor’s Rightsto Recover from Decedent’s (No Longer…) Revocable Trust, Bryan Cave PrivateClient Blog, Oct. 7, 2013.