Putting Together an Estate Plan for Beneficiaries Who Suffer from Addictions

July 21, 2021

The addiction epidemic has touched many families throughout the country and it is certainly worth considering if you have loved ones that you wish to leave assets behind to but are concerned about the risks. Unfortunately, many families today have to deal with the pain and challenges of a loved one suffering from addiction, whether it’s alcohol, drugs or other substances.

Leaving an inheritance to a person with a past or present addiction requires careful consideration from the support of an experienced estate planning attorney. Outright amounts can be detrimental and destructive whereas disinheriting them entirely could block them from getting the support that they need to battle their addiction.

Your professional advisors as well as your estate planning attorney should all be consulted when talking about estate planning for someone with addiction. A trust is one of the most valuable and helpful tools for accomplishing your goals. Setting up a trust to hold particular assets for the benefit of a beneficiary with an addiction could help support their overall recovery.

A trust protects the beneficiary from their creditors and from themselves. It provides specific directions for a trustee who manages the assets inside the account to determine when and how distributions are made to the beneficiary. A trust could provide for basic needs, such as food, shelter, and medical care.

The trustee can also be instructed to make those payments on behalf of the beneficiary rather than giving the funds to the beneficiary. Furthermore, your trust can outline provisions for counselling, treatment, and rehabilitation if needed. Schedule a consultation with an estate planning lawyer today to learn more.

 


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