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Understanding Inheritance Types

Individuals receive gifts or inheritances through various sources and through different means. For example, you may receive a car or a home as your “inheritance” from your parents when you reach age 18. Other inheritances might be in the form of stocks, a large lump payment, or monthly installments. While laws vary, in most states a single lump sum payment or receipt of a valuable item (like a car) won’t count as income for calculating child support. Yet, in many states interest, monthly installment payments or regular dividends on stocks received as part of an inheritance trust fund are deemed income. There is no hard and fast rule, but if you're receiving a large amount of regular income or payments from an inheritance, it can affect your child support obligation.

Depending on the type and amount of inheritance you receive, you may want to accelerate or delay a child support proceeding. For example, if you know that your ex will be receiving a large inheritance, you’ll likely want to delay the court’s child support determination until that happens or let the know that an inheritance is coming soon. Courts reason that a parent with a large amount of savings or assets has more money available to pay support.

Inheritances and Modifying Child Support

If you already have a child support order in place, and one parent has received a substantial amount of inheritance money, you may need to ask a court to modify child support. To reduce or increase child support, one parent needs to show that a material change in circumstances has occurred. A material change might be one parent’s promotion or job loss. An extreme increase or decrease in a parent’s income will impact child support payments, but inheritances aren’t always construed as income. Specifically, a court can’t consider the house you inherited in its modification determination. But if you collect rent on the inherited house, the rental profits can be considered.

One parent’s receipt of an inheritance won’t automatically result in increased child support, but if it drastically changes that parent’s standard of living, support amounts may go up. The role of inheritances on child support payments is complex, so you may want to consult a local family law attorney for advice.

Questions for Your Attorney

• I’m expecting an inheritance from a relative very soon. Does it matter if I receive the inheritance before the initial child support determination?


• If my ex receives a large inheritance, can I request an increase in child support payments based on the inheritance?


• Do I have to tell my ex or the court if I receive a large inheritance?


• What happens if my child’s other parent receives and spends a significant inheritance before I'm able to seek a modification of child support?

http://family-law.lawyers.com/child-support/effect-of-inheritance-on-child-support.html

Trust funds are a pain,  not that I'm not grateful  but, they can be frustrating in that only the beneficiary can benefit from them so no taking a friend out to eat or to a movie or obtaining cable t.v. because someone other than yourself might watch it. But then,  I'm bitter. No,  in my case the fund can't be shared with anyone.....