Permits portion of child support payments to be held in trust for child to access upon certain circumstances.
Impact
The impact of A757 on state laws includes modifications to existing family law statutes. It supplements Title 2A of the New Jersey Statutes by providing more structured financial planning in child support cases. For courts, this means an expanded capacity to intervene in child support agreements and the authority to appoint trustees who will manage these trusts. This change has the potential to improve the financial security of children by creating funds that will be available to them when they reach adulthood.
Summary
Assembly Bill A757, introduced in New Jersey, allows a portion of child support payments to be held in an irrevocable trust for the children benefiting from those payments. Specifically, upon the agreement of both parties involved in a child support arrangement, the court may order that up to 10% of the support payments be placed in trust. This provision aims to create a savings mechanism that can provide for the child’s needs in the future, especially once they reach adulthood at age 18 or another specified age as outlined in the trust terms.
Contention
Some points of contention surrounding A757 could revolve around the implications of trust management and the ability of courts to modify trust terms. Critics may argue that while the intent is noble, it complicates already challenging divorce and child custody proceedings. Concerns may also arise regarding the administration of these trusts and the potential for disputes between parents over how funds are managed and accessed by the children they support, including issues relating to the selection of trustees and their responsibilities.