11 USC 541(b)(1) states that property of the state does not include “any power the debtor may exercise soley for the benefit of an entity other than the debtor.” Additionally, 541 (d) states that property in which debtor holds “. . . only legal title and not an equitable interest. . .” is not property of the bankruptcy estate. In this case, debtor opened a separate bank account for her son and placed the child’s future child support monies in that account. Debtor has no equitable right to that money other than to provide for the support of the child. She holds mere legal title to the account because her minor child cannot legally maintain the account.
Support payments to the debtor on behalf of a child are considered trust funds which are beyond the reach of the bankruptcy trustee. In re: Gardner, 243 F. Supp 258 (D. Or. 1965); see also, Boston v. Gardner, 365 F.2d 242 (9th Cir 1966). These trust fund monies are not property of the estate. 11 USC 541(b)(1) and (d). In Dallas, the lawyer bankruptcy trustee attempted to gain control of child support payments: both current obligations and arrears. Id. at 259. The Court held that the custodial parent lacked ownership of child support payments because she held the money for the care, maintenance, education and support of her child. Id. At 258.