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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link="#0563C1" vlink="#954F72"><div class=WordSection1><p class=MsoNormal style='text-align:justify'><span style='font-family:"Times New Roman",serif'>This came up recently with me concerning a client. <o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-family:"Times New Roman",serif'>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). <o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>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.</span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>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<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>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<o:p></o:p></span></p><p class=MsoNormal><span style='font-family:"Times New Roman",serif'>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. <o:p></o:p></span></p><div><p class=MsoNormal style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Very truly yours,<o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Maureen A. Wickert, Attorney at Law<o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><img width=192 height=48 style='width:2.0in;height:.5in' id="_x0000_i1026" src="cid:image002.jpg@01D1F3C9.36480280" alt="Business card for email"><b><span style='font-size:16.0pt;font-family:"Garamond",serif'><o:p></o:p></span></b></p><p class=MsoNormal style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>14900 Interurban Avenue South, Suite 255<o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> Tukwila, WA 98168<o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> Phone: 206-859-5502<o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> Fax: 206-260-9005<o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> <a href="http://www.wickertlawoffice.com/"><span style='color:blue'>www.wickertlawoffice.com</span></a><o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><span style='font-size:12.0pt;font-family:"Times New Roman",serif'> <a href="mailto:wickertlaw@comcast.net"><span style='color:blue'>wickertlaw@comcast.net</span></a><o:p></o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;line-height:normal'><b><i><span style='font-size:10.0pt;font-family:"Times New Roman",serif;color:#000099'>This electronic message contains information which may be confidential and/or legally privileged. The information is intended for the use of the individual or entity named above. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of the contents of this transmission is prohibited. If you have received this electronic transmission in error, please notify me by telephone or by email immediately.</span></i></b><span style='font-size:10.0pt;font-family:"Times New Roman",serif'><o:p></o:p></span></p></div><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #E1E1E1 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>From:</b> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>John Creahan<br><b>Sent:</b> August 11, 2016 11:59<br><b>To:</b> wsbapt@lists.wsbarppt.com<br><b>Subject:</b> [WSBAPT] Back child support<o:p></o:p></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Hi,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>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?<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>Thanks,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'>John<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p> </o:p></span></p><p class=MsoNormal style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><span style='font-size:14.0pt;font-family:"Tw Cen MT",sans-serif;color:#595959'>John Creahan</span><span style='font-size:12.0pt;font-family:"Tw Cen MT",sans-serif;color:#595959'><br><a href="mailto:john@cairn-law.com"><span style='color:#595959'>john@cairn-law.com</span></a><o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:12.0pt;line-height:normal'><span style='font-size:12.0pt;font-family:"Tw Cen MT",sans-serif;color:#595959'>1325 4<sup>th</sup> Ave., Suite 940<br>Seattle, WA 98101<br>206-621-5848<br><a href="http://www.cairn-law.com/"><span style='color:#595959'>www.cairn-law.com</span></a></span><span style='font-size:12.0pt;font-family:"Tw Cen MT",sans-serif;color:#4F6228'><o:p></o:p></span></p><p class=MsoNormal style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><span style='color:#39471D'><img border=0 width=161 height=60 style='width:1.677in;height:.625in' id="Picture_x0020_1" src="cid:image004.png@01D1F3CB.2F5AB740" alt="cid:image001.png@01CE636C.3EB992D0"></span><span style='font-size:12.0pt;font-family:"Times New Roman",serif'><o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>