Section 19402 Of Chapter 12. Distributee Liability From California Probate Code >> Division 9. >> Part 8. >> Chapter 12.
19402
. (a) In any action under this chapter, subject to Section
366.2 of the Code of Civil Procedure, the distributee may assert any
defenses, cross-complaints, or setoffs that would have been available
to the deceased settlor if the settlor had not died.
(b) Personal liability under this chapter is applicable only to
the extent the claim of the creditor cannot be satisfied out of the
trust estate of the deceased settlor and is limited to a pro rata
portion of the claim of the creditor, based on the proportion that
the value of the property distributed to the person out of the trust
estate bears to the total value of all property distributed to all
persons out of the trust estate. Personal liability under this
chapter for all claims of all creditors shall not exceed the value of
the property distributed to the person out of the trust estate. As
used in this chapter, the value of the property is the fair market
value of the property on the date of its distribution, less the
amount of any liens and encumbrances on the property at that time.