College Tuition Question: The parties MSA states college tuition to be shared based on ability to pay. Child is full-time with PR parent who earns 50k, the other earns 400k. Simple enough. BUT, child has a special needs trust (assets ~250k) that was set up for "special needs" life expenses incl education from a wrongful birth/wrongful life med mal settlement. PPR wants to protect the fund for child's possible future needs and have parent who earns 400k pay bulk of college.
There is a case Moehring 268 N.J.Super. 477 (1993), where the proceeds of a car crash are not factored into ability to pay as "new found wealth". BUT states "a personal injury settlement differs from a custodial or trust account established for the child's education. Clearly funds set aside for educational purposes should be utilized to defray the parent's obligation. The personal injury settlement, however, was intended to compensate for pain and suffering."
Questions:
1) has anyone seen a case or have insight when applying Newburgh's "the financial resources of the child, including assets owned individually or held in custodianship or trust" that involves a special needs trust?
2) Would an application of Newburgh's "child's financial resources" factor require a complete exhaustion of funds from the trust before a parent's duty to support would kick in, or merely be a contribution?
3) What about creative use of the fund such as liquidation to now 18 y/o child and purchase an apartment near college to live in, would this still be considered an "asset" for tuition reimbursement?
Thanks in advance!
Thomas King
www.njfamily.law