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How To Address Your Adult Child’s Substance Abuse Issues In Your Will

Addiction Substance Abuse Trust Wills Estate Planning Jeyaram AssociatesWhen we start to think about the future for our adult children who struggle with addiction, we worry about their financial and overall well-being.

We want to help them be financially secure after we are gone, but we also want to make sure they are responsible with any inheritance they receive.

This is where setting up a trust and a designated trustee as part of your will can help protect your child.

It’s Important To Set Up A Trust & Trustee

If your adult child has a history of addiction or is unable to make responsible financial decisions, leaving them an inheritance without any kind of guidance or protections could lead to further challenges.

By creating a trust and designating someone to manage assets (a Trustee), you are putting into place protections to help your child from others – including creditors and sometime from themselves. Following are a couple of trusts that may be useful when leaving assets to someone with addiction challenges.

Trusts With Incentives

Trusts can be designed to include incentives such submitting to random drug tests in order to receive some of the assets or that the trust will match dollar for dollar for any earned income.

However, structuring a trust like this should be carefully considered as it could prevent your child from receiving any support despite perhaps their best attempts to beat their addiction.

In addition, money may not be the incentive your child needs to try to modify his or her behavior.

Wholly Discretionary Trusts

If your child has a severe addiction or a history of being financially irresponsible, a Wholly Discretionary Trust may be the best choice. With this trust, the Trustee maintains control over all finances and you can specifically direct how the funds will be used.

For example, funds may be used for tuition or rent (paid directly to a landlord) or medical expenses. This trust helps ensure that the money a child receives does not negatively contribute to their addiction.

Selecting A Trustee

A Trustee is someone you name in your trust to manage the assets you want to pass on to your child. Selecting the right Trustee is perhaps one of the most important decisions regarding setting up the trust.

We often recommend NOT choosing someone in your family as this can create conflict and ultimately lead to estranged relationships. Instead, we recommend selecting an independent person or a corporate trustee.

We’re A Part Of Your Team

Regardless of whether you want to set up a straight-forward trust, one with structured incentives, or a trust with restrictions, the trust should include a Trustee to manage it.

Dealing with a child’s challenges with substance abuse can be emotionally exhausting, financially draining and outright overwhelming.

We’re here to help you figure out the best approach for setting up your will and trust for you child. You don’t have to have all the answers when you meet with us.

We’re here to help you create a plan that best meets your wishes and your family’s circumstances. I can be reached at DJ@JeyLaw.com or 678.325.3872.