• Protecting Trusts From Claims of Alimony or Child Support
  • July 16, 2015
  • Law Firm: Nelson Nelson P.A. - North Miami Beach Office
  • Parents who want a child’s inheritance to pass into a trust, rather than outright, often seek to prevent the child’s former spouse from reaching such assets in the event of divorce. As I noted in my April 2013 article for Trusts & Estates,1 under the laws of some states, regardless of whether a trust has a spendthrift provision or is a discretionary trust (or both), a beneficiary’s children and/or a former spouse may have rights to reach trust assets that are otherwise protected from creditors. I expressed concern that discretionary and spendthrift trusts under Article 5 of the Uniform Trust Code (UTC) aren’t protected from claims of a former spouse who holds a judgment in the form of support (support judgment). I warned that in some states, such as Florida, it was unclear whether a former spouse with a support judgment could garnish assets held in a discretionary trust. My article stated: “[i]n light of the fact that as many as 30 states provide some type of exception creditor access to spendthrift trusts, it appears that for those beneficiaries known to have exposure, forum shopping for more protective jurisdictions may be advisable.”2