Florida Trust & Probate Attorneys Blog
By: Phillip B. Rarick, Miami Trust Attorney
Our firm’s Trust attorneys have enjoyed working with Family Law Attorneys for over 20 years. There are many ways Family Law Attorneys can use Trusts. Here are five common problems where a third-party Trust can help ensure compliance with future financial obligations set forth in the Marital Agreement.
Problem #1: Minor children and one or both parties are poor money managers.
- Solution: The marital agreement appoints a Trustee to make direct payments to the parent with custody but only after custodial parent submits request for payment, purpose of payment, and receipt to the Trustee. The Trust describes in detail how the Trust funds are to be used, such as for tuition at private schools, summer camps, children’s health needs, and extracurricular activities.
Problem #2: Husband does not want to commit to large insurance policy because he does not trust the wife to use the funds for her needs or children’s needs. Wife does not trust Husband to maintain premium payments.
- Solution: Husband transfers an agreed sum of funds to the Trust. The trust invests in a non-MEC insurance policy; the premium payments for the policy are paid by the Trustee over a 5-to-7-year period. Should the husband die, the wife receives a tax-free benefit ensuring that she has sufficient funds for the rest of her life. Upon her death, the couple’s children receive balance of funds.
Problem #3: Securing Alimony. Wife is not willing to commit to alimony because husband will blow it on sports gambling.
- Solution: The Trustee is required to make payments for husband’s maintenance and support needs but such funds are to be made directly to provider, such as to lender that holds mortgage on house, gambling addiction counselor, car payments, etc.
Problem #4: No funds set aside for the future education of the children.
- Solution: One or both parties commit to monthly payment of funds to irrevocable Trust for purchase of Florida Pre-Paid Plan or 529 plan.
Problem #5: Secure Payment of Life Insurance Policy.
- Solution: See our blog, Children’s Safe Harbor Trust
No doubt you can think of a hundred other ways a third-party Trust can benefit your clients.
Rarick & Bowden Gold is a boutique firm located in Miami Lakes and Weston that specializes in Trusts and Trust Administration. Here is how our attorneys can assist you if your client needs to incorporate a Trust in a marital agreement:
- Draft or review the Trust
- Serve as Trustee of the Trust
- Serve as counsel to the Trustee in helping ensure compliance with the Trust.
For more information contact info@raricklaw.com
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