Estate/Child Support

[milmom]

What is the name of your state (only U.S. law)? Maryland/Colorado

My husband and I closing on a house in Maryland on Tuesday. He was married previously and has children with his ex-wife. He pays child support on an order in Colorado. I've done some research lately and have become aware it's possible for the child support obligation to not be terminated in the event that he passes away, and that the future payments could taken from his estate. (He is current and will remain so, there is no arrears) My question is what would be considered "his estate"? Our house will be titled jointly with right of survivorship, so as I understand that would mean at least the house (his portion) would become mine. Does the same apply to joint accounts? Retirement benefits/TSP? I know military retirement benefits are dealt with as property in divorces, would it be considered "property" of the estate?

Just not sure what is considered estate. The plan is to have a portion of his life insurance put in trust to cover the future child support payments to avoid the estate being considered, but I just wanted to cover my bases.

I would do everything in my power to ensure his children are taken care of, but we have a child together as well and just wanted to get clarification on what "estate" includes.

Thank you.

 

[LdiJ]

What is the name of your state (only U.S. law)? Maryland/Colorado

My husband and I closing on a house in Maryland on Tuesday. He was married previously and has children with his ex-wife. He pays child support on an order in Colorado. I've done some research lately and have become aware it's possible for the child support obligation to not be terminated in the event that he passes away, and that the future payments could taken from his estate. (He is current and will remain so, there is no arrears) My question is what would be considered "his estate"? Our house will be titled jointly with right of survivorship, so as I understand that would mean at least the house (his portion) would become mine. Does the same apply to joint accounts? Retirement benefits/TSP? I know military retirement benefits are dealt with as property in divorces, would it be considered "property" of the estate?

Just not sure what is considered estate. The plan is to have a portion of his life insurance put in trust to cover the future child support payments to avoid the estate being considered, but I just wanted to cover my bases.

I would do everything in my power to ensure his children are taken care of, but we have a child together as well and just wanted to get clarification on what "estate" includes.

Thank you.

I would encourage you to consult with a local probate attorney, however his estate would not necessarily be obligated to continue to provide child support...his estate would be obligated to cover arrearages, but not current support. Anything that passes outside of his estate (anything jointly owned with rights of survivorship or anything with a specific beneficiary named) would not be part of his estate.

If he has social security credits his children would be entitled to social security survivor's benefits and possibly military benefits although I am not really up on that. I would not be a bad idea for him to have life insurance designated for the benefit of his children.

 

[milmom]

Thanks

I haven't researched Colorado statutes on the matter, but I know in Texas (which is where the children and mother reside) child support does not terminate upon death of the obligator, and the estate can be sued for future payments. I understand that his ex or him at some point would have to change the jurisdiction to Texas, but considering neither parent nor the children remain in Colorado, this wouldn't be difficult for either to do. I'm obviously not expecting him to pass, and he's not deploying or anything like that anytime soon, but just wanted to cover our bases now that we've purchased a home together, and have had our finances joint for some time.

He has social security credits, and as well if he were to pass on active duty the children would each get survivor benefits, but I'm not sure if all of those add up to what he pays in support. The survivor benefits are only around $235/month per child. I'm not sure the amount of SS benefits they would receive. I just know that his ex is very much dependent on the support he provides, and would hate in the event of his death to have to deal with my grief as well as her anguish and worry as to how to care for the kids. If he designates a portion of his life insurance to the children, would he be able to have it in trust to me to make the payments, or would it make more sense to have his ex? Would he be able to stipulate in the trust how much each month they are to receive?

I also have a child (as you may know from my post on the custody forum) that would need to be supported upon my death. Would I be able to have my life insurance put in a trust in my husband's name for her benefit? I do not have the best relationship with her father, and there is no way he could be trusted with that amount of money to have it last until she's 18!

 

[LdiJ]

I haven't researched Colorado statutes on the matter, but I know in Texas (which is where the children and mother reside) child support does not terminate upon death of the obligator, and the estate can be sued for future payments. I understand that his ex or him at some point would have to change the jurisdiction to Texas, but considering neither parent nor the children remain in Colorado, this wouldn't be difficult for either to do. I'm obviously not expecting him to pass, and he's not deploying or anything like that anytime soon, but just wanted to cover our bases now that we've purchased a home together, and have had our finances joint for some time.

He has social security credits, and as well if he were to pass on active duty the children would each get survivor benefits, but I'm not sure if all of those add up to what he pays in support. The survivor benefits are only around $235/month per child. I'm not sure the amount of SS benefits they would receive. I just know that his ex is very much dependent on the support he provides, and would hate in the event of his death to have to deal with my grief as well as her anguish and worry as to how to care for the kids. If he designates a portion of his life insurance to the children, would he be able to have it in trust to me to make the payments, or would it make more sense to have his ex? Would he be able to stipulate in the trust how much each month they are to receive?

I also have a child (as you may know from my post on the custody forum) that would need to be supported upon my death. Would I be able to have my life insurance put in a trust in my husband's name for her benefit? I do not have the best relationship with her father, and there is no way he could be trusted with that amount of money to have it last until she's 18!

Either one of you could provide life insurance that would go into a trust that would be administered by someone other than the other parent of the child(ren). However if either of you were to do that, I wouldn't necessarily recommend that you have your current spouse be the trustee...that opens up all kinds of cans of worms. Its better to have someone like a grandparent or aunt or uncle be the trustee so that there is less likelihood of "drama" or accusations of mismanagement.