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Articles Posted in Family Law

By Phil Rarick, Miami Estate Planning Attorney 

Sometimes the best designed Marital Settlement Agreements fail because they lack a strong mechanism to ensure that support payments, designated for the children, are not wasted by poor money management, by either or both parents. In such circumstances, Family Law Attorneys should consider a Children’s Future Trust or CFT for short.   A Children’s Future Trust can help protect and safeguard the children’s future education, health and essential lifestyle needs. Here are some benefits:

  1. Secure and Ensure Prudent Management Of Child Support Funds By An Independent Trustee

By Phillip B. Rarick, Weston Estate Planning Attorney

Irrevocable divorce trusts should always be an important tool in the Family Law Attorneys bag of tools as a well designed trust can address multiple issues that cannot be fully resolved through a Divorce Agreement.   It may be a good idea to brainstorm possible irrevocable divorce trust solutions with an experienced estate planning attorney at the commencement of the case. Here are a few examples:

Dissolution #1:           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 to secure 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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