[WSBAPT] Back child support

[Maureen Wickert]

This came up recently with me concerning a client. 

RCW 11.96A.190 excepts child support payments from a trust's protective
spendthrift provision when the child support payments are demanded in the
form of an "execution." Child support laws include a beneficiary's trust
income as part the child support calculations of payments he or she owes,
RCW 26.19.071(3)(j). 

RCW 6.32.250 protects spendthrift provisions of a trust when the grantor
affirmatively expressed a beneficiary is prohibited from alienating trust
income or principal for his personal debts. But this protection does not
extend to a beneficiary when he has a present vested interest and right to
receive trust principal or income. The present vested interest being his
right to take income or principal outright free of the terms of the trust
agreement.

Milner v. Outcalt may be of interest. It discussed trust income cannot be
attached to satisfy a beneficiary's personal debt unless the trust income
accrued and becomes distributable to the beneficiary. 36 Wn.2d 720 (Wash.
1950), 31319, Milner v. Outcalt

Erickson v Bank of California may be of interest too. It discussed the
validity of a spendthrift provision in a trust and the provision application
to general creditor issues of a beneficiary. 97 Wn.2d 246 (Wash. 1982),
47705-1, Erickson v. Bank of California, N. A

I would be most interested on comments from others and how they addressed
this issue. The trust terms of when income and/or principal may be vested in
a beneficiary is important. 

Very truly yours,

Maureen A. Wickert, Attorney at Law



14900 Interurban Avenue South, Suite 255

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       Phone: 206-859-5502

         Fax: 206-260-9005

      <http://www.wickertlawoffice.com/> www.wickertlawoffice.com

        <mailto:wickertlaw at comcast.net> wickertlaw at comcast.net

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From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John Creahan
Sent: August 11, 2016 11:59
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Back child support

 

Hi,

I am working with a client who is likely to establish a trust for his son,
who may owe back child support (the details are hazy). As I understand it,
the state may have some power to recover child support payments from this
potential trust, even though it will be third-party funded. Has anyone dealt
with this issue? If so, do you have a few minutes to discuss?

Thanks,

John

 

John Creahan
 <mailto:john at cairn-law.com> john at cairn-law.com

1325 4th Ave., Suite 940
Seattle, WA 98101
206-621-5848
 <http://www.cairn-law.com/> www.cairn-law.com



 

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