How To Get Past Due Child Support Arrears Waived

by Paul Cenac
(Marietta, GA USA)

I have recently been researching different methods of trying to provide some college funding for my 2 young daughters aged 13 and 11.

10 years ago, I transferred $40,000 from the sale of my parents house into a College Savings Plan for them. Unfortunately, over my vigorous protests, the female Family Court Judge gave my alcoholic ex signatory access to the funds, should I die etc.

Wait for it...YES, my ex immediately took the money and bought another Acura SUV! YES AGAIN! She already had a maroon one but wanted a new silver one also! Needless to say, I have been trying to keep her hands off my daughters college educational funds and inheritance ever since!

I think I have found an answer:

First and foremost, I wanted limited access so an Irrevocable Children's Educational Trust seems the way to go, with a trusted fiduciary managing the Trust.

Second, I wanted to take advantage of Compound Interest between now and then.

Third, I wanted the distributions to be Tax Free so 100% would go to the girls.

Fourth, if I ever need to show the Court I am very interested in my children's welfare but have to protect their future from their mother, I would have this plan in place.

So, I am looking at buying Fixed Index Universal Life Policies to put in the Trust on the lives of my young daughters to get the absolute lowest monthly premium. My Goal is to have $12,500 in Cash Value ($25,000 total) and growing available for both daughters to draw from monthly tax-free for College Expenses et al starting in 5 years. Of course, there is also a variable but very high lifetime paid-up Death Benefits, etc.

The monthly premium of about $250/month/child for only 5 years seems like a much more doable scenario than trying to come up with $25,000 to just fork over to the alcoholic ex.

Does anyone know of a Case where the Court accepted a future looking financial plan as a reason to cancel out past due child support arrears? If I just pay the arrears to the alcoholic mother, she will just buy alcohol and drugs, while my girls watch her drink away their college funds!!

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Great Concept
by: Child Support America Team Member

Hi Paul,

We felt your frustration in your post. Your concept is great, but we have never heard of such a case where your idea and plan would cancel out back child support. The only way we know to get arrears waived, is if the custodial parent agrees to it.

It doesn't appear that your ex would be willing to do that right?


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