The ‘realiTandE’ Of Being A Parent

Luann de Lesseps (Photo by Rommel Demano/Getty Images)

Reality television’s draw is its revelation of real-life situations, presumably spontaneous, wherein the viewer is privy to personal catastrophe and triumph. Often the drama relates to an unfolding legal issue, usually family-related, sparking anger, frustration, and of course viewership.  A quick survey of the Bravo network indicates that sticky familial legal issues, divorce, child-alienation, and inheritance, apply to all facets of society (albeit the wealthier often make for juicier watching).

Countess Luann de Lesseps, of the Real Housewives of New York famed for her song “Money Can’t Buy You Class,” is the defendant in a Suffolk County Supreme Court lawsuit wherein her former husband, Count Alexandre de Lesseps, and children, Victoria de Lesseps and Noel de Lesseps, are suing her for breach of contract, breach of fiduciary duty, unjust enrichment, and conversion among other causes of action. A formal Answer has not yet been filed.

The complaint alleges that defendant did not follow a 2009 Stipulation Settlement in violation of a Judgment of Divorce mandating that she establish a trust for the benefit of the children, using half of the proceeds from the sale of the marital Hamptons home that she received in the divorce. The complaint further alleges that defendant used the proceeds from the sale of the marital home to purchase another residence, but as the sole owner, without ever establishing the children’s trust.

Parents have a legal obligation to provide support for their minor children, however, in many cases, they acquire additional fiduciary responsibilities including acting as custodians for Uniform Gift to Minors Act (UGMA/UTMA) Accounts, IRS 529 or “qualified tuition plans,” IRS 2503(c) Minor’s Trusts. and ABLE Accounts for disabled individuals.  While a parent is an obvious choice to serve as a trustee or custodian of a child’s bank account, and he may even be the funds’ donor, the same rules as to investment and prudency and bars against self-dealing and unjust enrichment apply.

In the event of a divorce settlement, as in any contract, the parties must carry out their obligations that may include maintaining a life insurance policy, health insurance or establishing a bank or trust account. Failure to honor one’s legal obligations can result in litigation between the spouses or even parent and child, which is undoubtedly the worst of all situations. Such obligations will survive your lifetime and can pit family members against each other in probate court, an undesirable forum for arguing a protracted matrimonial matter.

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Cori A. Robinson is a solo practitioner having founded Cori A. Robinson PLLC, a New York and New Jersey law firm, in 2017. For more than a decade Cori has focused her law practice on trusts and estates and elder law including estate and Medicaid planning, probate and administration, estate litigation, and guardianships. She can be reached at cori@robinsonestatelaw.com. 

The ‘realiTandE’ Of Being A Parent curated from Above the Law