Update on Trust Funds’ Protection from Claims

In some states, such as Florida, it was unclear whether a former spouse with a judgment in the form of support could garnish assets held in a discretionary trust. On Nov. 27, 2013, the Second District Court of Appeal of Florida issued its decision in Berlinger v. Casselberry, Case No. 2D12-6470 (Fla. 2d DCA Nov. 27, 2013), which provides an update on this issue. The court in Berlinger held that Bacardi still controls Florida law. Therefore, parents desiring maximum protection for their children should consider creating and administering discretionary trusts in Alaska, Nevada or South Dakota, rather than Florida.

See Barry A. Nelson, Update: Are Trust Funds Safe From Claims For Alimony or Child Support?, Wealth Management, Dec. 9, 2013.