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Transferring property into a trust for children removes it from the family court's jurisdiction in financial proceedings.
The court can look through trusts under s.25 MCA 1973 and examine whether the trust is genuine estate planning or a device to defeat a claim. Even a legitimate trust may not protect the property if one or both parents retain a life interest. The court's powers to vary settlements under s.24 MCA 1973 can extend to nuptial settlements. Putting a house in trust does not guarantee it is beyond reach.
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The Gap?
"If I put the house in trust for my children, the court cannot order it to be sold."
Court Reality
25 MCA 1973 and examine whether the trust is genuine estate planning or a device to defeat a claim. Even a legitimate trust may not protect the property if one or both parents retain a life interest.
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