Wills and Trust Law Firm
When someone creates a trust, they are creating a document that states where they wish their assets to go and who should take care of them. If someone wants their property to go to a minor child, for example, the best solution may be to put the property into a trust fund until they are of legal age or until the trustor believes they are responsible enough to take care of the property. However, while signing a trust may make it seem like what you want cannot be changed, the question of child support payments may come up. During a divorce, both parents have the responsibility of taking care of their children, even if one does not have legal or physical custody of the children. Estate planning attorneys understand that when you are named in someone else’s trust and wondering about child support, you may have a lot of questions. Do not hesitate to ask us how a lawyer can help you today.
What is child support?
When you and your spouse go through a divorce and you have a child or children together, the state will determine who pays child support. While many people think of this as a form of punishment, it is supposed to be a way of showing that even though both parents are separated and even if one has physical and legal custody more than the other, both parents are there to support the children.
When a judge sets a certain number on the amount you pay for child support, they will examine:
- Your salary or wages
- Your bonuses
- Your overtime pay
- Your lottery winnings
- Any money you get from a will or a trust
- Your disability benefits
So, how does a trust fit into all of this?
You may be wondering how you being named in a trust fits into all of this. While a trust is a great way for someone to give you property or money, it is also another means of “income.” This means that if you are receiving money from a trust, you need to report this money to the court as part of your income. You may be receiving a monthly income from a trust or you could have received a lump-sum income. Likewise, if a person is receiving child support and they are named in a trust and receive money, this money will be counted against them. This means that if they receive this money, the spouse paying child support will not need to pay as much.