Protecting assets from a beneficiary’s divorce is a common concern of clients as they structure their estate plans. The common assumption is that irrevocable trusts for the benefit of an individual are completely irrelevant in determining how property will be divided if that individual gets divorced. That is not the case. In almost every state, at a minimum the existence of the trust and the income a spouse regularly receives from it will be considered in determining the division of property and any alimony obligations. Moreover, courts in some states increasingly are finding indirect ways to treat a trust or a portion of it as property subject to division, even if the court cannot force a trustee to distribute trust property right away. We will explore new developments in this ever-changing area.

Discussion Highlights

• Understand the impact of the 2017 Tax Cuts and Jobs Act on the tax treatment of irrevocable trusts with an ex-spouse as a beneficiary and how to navigate these changes in estate planning.
• Learn about the general laws applicable to irrevocable trusts in the context of divorce and how these laws affect the division of property and alimony obligations.
• Review recent cases and explore how some state courts are increasingly finding ways to treat trusts as property subject to division in divorce proceedings.
• Identify effective strategies for drafting and administering irrevocable trusts to help protect them from being considered in divorce settlements.

Thomas W. Abendroth, Partner, ArentFox Schiff LLP

Stephen W. Murphy, Partner, McGuireWoods LLP

Continuing Education Credits:

Live and Recording—CTFA 2.00, CISP 2.00, CRSP 2.00 credits
CLE Credits Pending

To register, please email amelia.dow@portlandtrust.com