Fundraising money count as income?

[special mom]

What is the name of your state? MD

My stepdaughter has organized a fundraiser for my daughter’s medical bills, it is the kindest thing and I’m so impressed that a 15yo girl would think to do this. Her mother has done such a great job raising her.

Anyway, my question is this; NCP of child with medical condition is trying to have his obligation reduced only weeks after it was modified. First he claimed due to decrease in income (judge imputed him one) and then because of child care for new child. He is claiming now, that whatever is raised through the “fun run” should be included as my income. Will this count as income? We’re facing major brain surgery for my little one and several people have offered to make donations to help with her medical bills. How would this be figured into the support? I have no idea how much will be raised, the event has not occurred yet, but would he not be liable for his part of the medical bills because of donations?

Special Mom

 

[Silverplum]

I really wish I knew the answer to that, specialmom. (I also really wish someone would whack your X upside the head with a hammer!)

There's this, but you probably already know it all:
http://www.dhr.state.md.us/csea/help.htm
It does list all kinds of income considered. I can't possibly imagine a judge would allow him to do this. If I were you, I'd tell him to come and get me...go ahead and take it to court. Go ahead, buddy, tell the judge how CS should go down because a legal stranger worked to give money to your child for her medical bills. What a pig.

Kudos and love to your wonderful stepdaughter!
And good luck and God's blessings to you, specialmom, and to your daughter.

 

[nextwife]

You may want to look into creating a special trust fund for the medical donations. The money is for the child's medical care, and not intended to be "your" money. If it goes to a trust fund for the child's benefit, it is not "your" money. THis will also help the donors know that the money is segregated from your own money.

 

[CJane]

Your safest option is probably to set up a charitable foundation that people can make contributions to, rather than having them pay you directly.

 

[special mom]

Thank you

How would I go about doing that? Would just setting up in an account in her name work or would I need to do something different?

 

[LdiJ]

How would I go about doing that? Would just setting up in an account in her name work or would I need to do something different?

Go have a talk with the branch manager at your local bank. When some friends of mine were involved in something similar they set up a bank account that was a trust account.

 

[special mom]

Thank you so much for your help. I will do that tomorrow. Now one more question, if it is in her name, ie trust account, charitable foundation, or however we work it out, will it count as her income and could that be used in a child support calculation? I know it would if we qualified for SSI but we make too much. I went to the Maryland Guidelines and it doesn't really mention anything regarding that. Anyone know? Thanks again, I wish this wasn't an anonymous forum, I would love to share the link to the newspaper article on the funrun. I'm just so touched and proud of my step daughter and her classmates, who by the way, have never even met my daughter and live in another state. Amazing!

 

[tranquility]

I don't believe you will be able to set up a charitable foundation. (And make it deductible to the givers.) However, that does not mean the money is taxable. I'd say it was given with disinterested generosity. This makes it a gift and not income.

I don't know if a gift or inheritance would be counted in the child support calculation. Even if it were, I can't believe a judge would be very receptive if jerk spouse made a motion to do so in this circumstance.

 

[LdiJ]

I don't believe you will be able to set up a charitable foundation. (And make it deductible to the givers.) However, that does not mean the money is taxable. I'd say it was given with disinterested generosity. This makes it a gift and not income.

I don't know if a gift or inheritance would be counted in the child support calculation. Even if it were, I can't believe a judge would be very receptive if jerk spouse made a motion to do so in this circumstance.

The issue isn't whether or not it is taxable, (and I agree with you, its not, its a gift) but whether or not it is "income" for the purposes of a child support calculation (they are often separate issues).

On that side of things I also feel that a judge would probably rip dad a new one if he even tried. However, its possible (maybe probable) that a judge would apportion the "gifts" as equally applying to both mom and dad's out of pocket medical expenses, therefore its possible that mom and dad would end up splitting the medical bills after the gifts were applied.

Therefore, even if the intent of the gifts was to defray only mom's share of the expense, its possible that a judge would rule that they defrayed both parent's share.

However..if dad was stupid enough to try to lower child support as a result of the gifts (in this particular circumstance) who KNOWS what a judge might rule.

 

[special mom]

Thanks to all...I'll be sure to let you know what happens. And if you wouldn't mind, please keep my little one in your thoughts and prayers. I'll talk someone from the credit union who is a financial advisor and get the whole thing set up. This website has been such a lifeline for me in a very turbulent time. We go tomorrow to get the results of the latest MRI and meet the neurosurgeon, so we have quite a few irons in the fire. Thanks to all.

SpecialMom

 

[CandiceH]

I have to say that your daughter is in my prayers. A friend had a son who went through something similar (with the brain) at the age of 4. He just turned 8 and he is AMAZING. He gets annual MRI's (use to be every six months) and things look good. I wish the same outcome for your daughter! And what an AMAZING step daughter you have! PLEASE keep us posted. (and your ex sounds more of an ahole than mine).