In the State of Texas,
Settler creates a revocable living trust which, among other things, provides for certain GST-exempt cash payouts to be made upon her death. The trust also provides that creditors may dip into the trust to collect for any outstanding claims, but only in the instance that the remainder of her estate is insufficient to pay out the claim. Does this provision bind the administration of the trust to the probate proceedings as it relates to notice being given to potential creditors and the 4-month waiting period state law gives for said creditors to stake a claim on her estate? That is, do the payouts the trust provides for have to wait until after this waiting period to be administered? Or if it is known that no such creditors exist and the probate estate is of ample size to cover any potential surprises in terms of unknown creditors can payouts be made prior to the creditor deadline?