Section 9653 Of Chapter 2. Estate Management Generally From California Probate Code >> Division 7. >> Part 5. >> Chapter 2.
9653
. (a) On application of a creditor of the decedent or the
estate, the personal representative shall commence and prosecute an
action for the recovery of real or personal property of the decedent
for the benefit of creditors if the personal representative has
insufficient assets to pay creditors and the decedent during lifetime
did any of the following with respect to the property:
(1) Made a conveyance of the property, or any right or interest in
the property, that is voidable as to creditors under the Uniform
Voidable Transactions Act (Chapter 1 (commencing with Section 3439)
of Title 2 of Part 2 of Division 4 of the Civil Code).
(2) Made a gift of the property in view of impending death.
(3) Made a direction to transfer a vehicle, undocumented vessel,
manufactured home, mobilehome, commercial coach, truck camper, or
floating home to a designated beneficiary on the decedent's death
pursuant to Section 18102.2 of the Health and Safety Code, or Section
5910.5 or 9916.5 of the Vehicle Code, and the property has been
transferred as directed.
(b) A creditor making application under this section shall pay
such part of the costs and expenses of the suit and attorney's fees,
or give an undertaking to the personal representative for that
purpose, as the personal representative and the creditor agree, or,
absent an agreement, as the court or judge orders.
(c) The property recovered under this section shall be sold for
the payment of debts in the same manner as if the decedent had died
seized or possessed of the property. The proceeds of the sale shall
be applied first to payment of the costs and expenses of suit,
including attorney's fees, and then to payment of the debts of the
decedent in the same manner as other property in possession of the
personal representative. After all the debts of the decedent have
been paid, the remainder of the proceeds shall be paid to the person
from whom the property was recovered. The property may be sold in its
entirety or in such portion as necessary to pay the debts.