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- W201775470 abstract "By Al Palfi Recent articles in Family Advocate have clearly presented the dramatic impact of continued high infla tion on fixed alimony and child support awards. (See Spring 1979 issue, Vol. 1, No. 4.) These articles point out that inflation creates a real reduction in the standard of living of those often least able to afford it: the di vorced person and the children. One way to deal with this problem is to incorporate imaginative language in the decree or in the settlement agreement. For example, one provision might include a way to index periodic payments. Typical language could provide for a dollar amount at a given base period with an annual (or some other time interval) revision of the payment based on incremental changes in the Con sumer Price Index. Aside from the complexity of such an approach, there are at least three serious drawbacks that come to mind. Too often the give and take of tough negotiations fails to protect the awardee against the death of the ex-spouse obligated to make the payments without a provision for continuation of the obligation; unexpected misfortune (often, but not necessarily, without fault on the part of the obligated ex-spouse either as a result of loss of employment or of physi cal infirmity; unwillingness to honor payment schedules (ranging from chronic untimeliness to a flat refusal to pay). One solution to these problems is the alimony trust. Its flexible nature allows the attorney to use as much creative language as is needed. HOW AN ALIMONY TRUST WORKS Essentially, the parties agree that an irrevocable trust be created with the following features: (a) a corporate fiduciary (bank or trust company) is the trustee and the trust will, if necessary, con tinue after the death of the ex-spouse obligor with the trust agreement being incorporated by refer ence in the underlying decree; (b) assets are placed in the hands of the trustee to generate sufficient funds to take care of all fore" @default.
- W201775470 created "2016-06-24" @default.
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- W201775470 date "2016-01-01" @default.
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- W201775470 title "CREATING AN ALIMONY TRUST" @default.
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