What is a Child Support Trust?
The concept of a child support trust is fairly simple: the parent responsible for paying child support puts money into a fund that is managed by a bank or trust company, and the money goes directly to the child or children named as beneficiaries. This arrangement offers a distinct advantage over paying child support through Alaska's Child Support Services Division, which gives money to the child's other parent instead of directly to the child.
Establishing a Child Support Trust: Planning for Your Child's Future
Giving money directly to your child instead of a former partner or spouse is desirable to many people who owe child support. It helps ensure that the money they pay each month actually benefits their child. The security that this arrangement provides should not be understated. Instead of dealing with the worry and conflict that can arise when parents realize their child support funds were spent on their former partner's personal expenses, a trustee with a fiduciary duty to their children manages their money and disburses the legally required amount directly to the children each month.
How Much Will I Have to Pay in Child Support?
Alaska Civil Rule 90.3 provides the statutory guidelines for child support orders. Generally speaking, your child support order is proportional to your monthly income, and depends on the number ofchildren you have. The Child Support Calculator provided by the State of Alaska can help you determine your monthly child support obligation.
When Can I Set Up a Child Support Trust?
At the beginning of a custody case, or whenever a modification in an existing child support or custody order is legally permitted. Shortell Law LLC has extensive experience handling high net-worth divorce and custody cases in the State of Alaska, and can counsel you on how to protect your interests.