Back child support could cause inheritance issues

Back child support could cause inheritance issues

| Feb 28, 2018 | Estate Planning |

If an Ohio resident owes back child support, it may result in a lien being placed on a future inheritance. Typically, only a back tax debt would take priority over a lien resulting from a child support judgment. Therefore, an executor could be forced to liquidate assets such as a home and make a payment to the party overseeing the child support payments. This is generally true even if multiple names are on the title to such an asset.

Prior to settling an estate, an executor is required to make sure that there are no child support balances owed. When there is a balance owed, the value of cash or assets inherited would first be paid to the relevant child support agency to satisfy the judgment in part or in whole. If the value of the inheritance is greater than the amount of support owed, the beneficiary or beneficiaries may keep whatever is left over.

In a case involving multiple people who would receive title to a house, the other parties could raise funds to pay off a child support obligation. This could allow them to keep the home. In return, the person who owes child support could use his or her interest in the property as collateral.

A child support judgment or other potential problems with creditors may result in inheritance issues. Individuals who believe that they owe back child support or other outstanding balances may wish to inform their attorney of that fact as soon as possible. This may make it possible to create solutions for a beneficiary to receive assets that have monetary or sentimental value. For instance, it may be possible for an individual to pay off an outstanding balance to have a lien removed.