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Legal blog > Marriage > A trust cannot be used as an escape route

A trust cannot be used as an escape route

The creation of a trust cannot be used as an escape route for a parent to avoid fulfilling their child support obligations.

«There isn't necessarily a gallant knight behind every suit of armor»

The reason for resorting to certain legal vehicles is often the desire to limit one's liability. Thus, since the advent of the new Civil Code, many people are considering the use of a trust in such a spirit.

Mr. and Mrs. have been in a relationship for several years and two children were born during these years of courtship. When the relationship ended, Mr. left the residence but allowed Mrs. to live there with their children. A few years later, Mr. took back this residence but was ordered by the court to pay child support of $500 per month after the court awarded custody of the children to the mother.

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Mr. appealed the case and challenged, among other things, the court's decision on child support by arguing that the trial judge should not have taken into account the income from a trust in the calculation of his income, since the trust has a separate net worth from his own.

The evidence shows that Mr. is the sole beneficiary of the trust, which was established by the transfer of a dozen properties from his estate to the trust's estate. The Court concludes that: "The establishment of a trust cannot be used as an escape route for a parent to evade child support obligations."

If shields and armor served certain knights well in the past, nowadays it is different for certain industry knights who seek to turn the trust into a shield and armor to evade their child support obligations.

*CA Quebec 200-09-005700-064

François Forget, notary and legal advisor as well as the entire Notaire-Direct team, are at your service to ensure the preparation of your legal documents and answer all your legal questions.
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