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Does an asset protection trust protect my house from creditors including child support in arrears? family judge will let me

Denville, NJ |

I am almost done buying a house, I was advised to set up an asset protection trust(irrevocable trust) in order to protect my home from creditors. Will this type of ATP trust protect me from child support debt as well? Is it a good idea to do so? I pray Gods never allow me to fall behind in my child payments but in the case of loosing my job or any unpredictable circumstances I do not want to have the house taken away to pay child support. On the another hand if I die I definetely want my only son to own my home but he is only 3 yrs so I need a trust to manage the home for him Please advise.

Attorney Answers 3


  1. You could consider term insurance (which I do NOT sell) as a stop-gap so your son can hold onto property, etc. - I'd be interested to see what the other pontiffs opine about child support protection, but my belief is it will not as that is an existing obligation versus an unknown future creditor.

    This response is an opinion only and should not be considered as legal advice. Use advise at your own risk. No attorney client relationship has been established. If appropriate, you may reach the undersigned at the telephone number in the profile. Thank you.


  2. An asset protection trust will not protect against debts as of creation of the trust. However, some kinds of trusts (typically expensive to set up and maintain) may protect against future obligations like child support not yet due.

    Lawrence Friedman, Bridgewater, NJ. Certified as an Elder Law Attorney by the ABA approved National Elder Law Foundation, former Chair NJ State Bar Association Elder and Disabilities Law Section, Member Board of Consultors of NJSBA Real Property, Trusts & Estates Law Section, Vice Chair Special Needs Law Section of National Academy of Elder Law Attorneys, and Master of Laws (LL.M.) in Taxation from N.Y.U. School of Law. Visit SpecialNeedsNJ.com for articles and Q&A on elder law, special needs, wills, trusts, estates, and tax. Visit SpecialNeedsNJ.com/blog and subscribe for free timely updates to be delivered to your inbox. Information on both Avvo and SpecialNeedsNJ.com does not constitute legal advice, as it is general in nature and may not apply to your situation or be subject to important changes. No attorney client relationship exists unless set forth in written engagement terms.

    Lawrence Friedman, Bridgewater, NJ. Certified as an Elder Law Attorney by the ABA approved National Elder Law Foundation, former Chair NJ State Bar Association Elder and Disabilities Law Section, Member Board of Consultors of NJSBA Real Property, Trusts & Estates Law Section, Vice Chair Special Needs Law Section of National Academy of Elder Law Attorneys, and Master of Laws (LL.M.) in Taxation from N.Y.U. School of Law. Visit SpecialNeedsNJ.com for articles and Q&A on elder law, special needs, wills, trusts, estates, and tax. Visit SpecialNeedsNJ.com/blog and subscribe for free timely updates to be delivered to your inbox. Information on both Avvo and SpecialNeedsNJ.com does not constitute legal advice, as it is general in nature and may not apply to your situation or be subject to important changes. No attorney client relationship exists unless set forth in written engagement terms.


  3. Being that there seems to be a debt or obligation pre-trust creation, it would not stop the trust from being breached. I would speak to an Estate and Trust specialist and there are several on this site. THe answer with GAP insurance is smart as well, and the you can set up specific vehicles to transfer the property to your son at the apropriate time.

    The previous information is solely for informational purposes only. If you have further questions, please contact an attorney in your area for more specific answers. Responding to your question in no way creates an attorney/client relationship, and none of the specific guarantees of privacy exist. If you have found this information helpful, kindly check the "helpful" box.

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