Dobler

Cotrastees appeal from an order of the probate court directing payment of the unsatisfied portion of a judgment entered against the decedent from assets of the decedent’s revocable inter vivos trust. They contend the probate court erred in concluding Probate Code section 19001 authorized payment to judgment creditors from trust assets without requiring the creditors to first sue the trustees within the time required by the applicable statutes of limitation. We find no error. Accordingly, we affirm.

Facts and Proceedings Below

Dr. Theodore M. Hylwa formed Arluk Medical Center Industrial Group, Inc. (AMCIG) in 1988 along with two other doctors. Each doctor received a third of the shares of the corporation. As part of their employment agreement with the corporation the doctors agreed to render medical care to AMCIG’s patients and to contribute to AMCIG income received from their services.

In 1989 the doctors agreed AMCIG would purchase insurance on the life of the shareholders in the amount of $400,000 for each shareholder. In the event of a shareholder’s death the proceeds were to be used to purchase the deceased shareholder’s stock in AMCIG and to pay off corporate…