Does a living trust become irrevocable upon the death of the grantor? Would this stop a lawsuit if the lawsuit is filed AFTER the trust has been distributed to beneficiaries?
Here's the long story in a nutshell, my father in law passed away four days after an accident for which he was technically at fault. He had insurance. However--about a year AFTER the trust had been distributed to the heirs (and all creditors paid), a personal injury lawsuit was levied against the insurance company, the trust AND the beneficiaries. We (the trust and beneficiaries) were dismissed by a judge without prejudice (or whichever 'prejudice' allows you to refile within a year). No judgement has been made as of yet and of course they are asking for much more money than either the insurance or trust had. Is there some way we can protect our inheritance now before they refile against us again? Can they? We live in Oklahoma & I've heard everything from 'you've got no problems' to 'you're screwed.' Another opinion is appreciated.