3 CREATIVE WAYS FAMILY LAW ATTORNEYS CAN USE TRUSTS
By: Phillip B. Rarick, Miami Trust Attorney, and Maria C. Gonzalez, B.C.C., Family Law Attorney
The following note is a brief review of three popular trusts that can help ensure compliance with future financial obligations set forth in a Pre-Nuptial Agreement or Marital Settlement Agreement.
Irrevocable minors trusts should always be an important tool in the Family Law Attorneys bag of tools because a well designed trust can address multiple issues that cannot be fully resolved through a Marital Settlement Agreement. It may be a good idea to brainstorm possible trust solutions with an experienced estate planning attorney at the commencement of the case. Here are three examples:
Problem #1: Wife, Husband (or both) are Poor Money Managers. Example: Husband and wife have minor children, ages 8 and 10. Wife is big shopper and bad money manager. Your client is the Husband. He is concerned that if child support payments go directly to wife she will use some of the funds to buy expensive clothing and keep up her lavish life style – to the detriment of the children. Both parents agree that they want to ensure that the children go to a private high school and a prestigious college or university after high school.
By: Phillip B. Rarick, Esq.
Most divorce judgments call for one of the parties to obtain a life insurance policy for securing the payment of child support, alimony or some other financial obligation. Let’s assume the obligation is solely child support: a potential mistake is failure to secure payment of the policy premiums by use of an irrevocable Children’s Safe Harbor Trust structured as a spendthrift trust.
For securing the payment of child support, the settlement agreement should have specific language that may read as follows:
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