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Using Trusts in a Divorce

In a divorce case where a trust exists, it is possible to terminate the trust, with the agreement of all the parties, to utilize the proceeds to meet the needs of the parties in effectuating equitable distribution. Bear in mind that the termination of a trust can only be achieved by agreement and therefore such a goal cannot be achieved in a litigated matter. As part of a divorce settlement, certain types of trusts can be created for funding education expenses or covering medical expenses. These trusts would provide a mechanism for meeting support obligations.

27 minute read March 18, 2004 at 08:17 AM
By
Lynne Strober
Using Trusts in a Divorce

As part of estate and tax planning, individuals can place their assets in a trust. These include joint assets acquired during a marriage, pre-marital assets, or marital assets in one party's name.

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