Q + A: Estate Planning When Your Child Struggles with Addiction

Reader Question: "My son is battling an addiction, and I'm thinking about changing my will. If I die, inheriting cash could be the worst thing that happens to him. I don't want to cut him out completely and hurt him, but I don't want to create a disastrous situation either. Are there other options that you would suggest?"

Attorney Answer: This is a sensitive and complex situation, but you are not alone. Many parents share similar concerns about their children’s mental health issues such as addiction, and expend a great deal of energy worrying about what will happen to their child when the parent is no longer there to care for them. Fortunately, there are estate planning strategies that can help. One such option is a Trust.

A Trust is a legal arrangement where a trustee holds and manages assets for the benefit of someone else, the beneficiary. In your situation, you could create a trust for your son, and appoint a reliable trustee to manage it. The trustee would control the assets and have discretion over how and when to distribute them, based on the terms you set in the trust agreement. For example, the trustee could be instructed to only distribute funds for specific purposes, such as education, housing, or medical care. The trustee could pay rent and other bills directly, rather than giving your son cash and hoping the bills get paid.

A trust can also be structured to provide incentives for positive behavior or to distribute funds over time, rather than in a lump sum. For instance, the trust could provide regular small distributions, or the trustee could be empowered to cut back or increase the distributions based on your son's behavior or circumstances. Creating a trust for a beneficiary with addiction issues can be a compassionate solution that provides support without enabling harmful behavior. It allows you to leave your son a legacy without the risk that the inheritance will be misused or wasted.

I would encourage even parents of children who are in recovery to consider setting up a trust like this. I have seen too many situation where grief can lead to relapses, and having a trustee is crucial to ensure that funds are protected and spent in the child’s best interest in getting through this tough period of time.

But setting up a trust can be complex, and the rules vary by state. It's crucial to seek advice from an experienced estate planning attorney to ensure your trust is structured effectively and legally. If you'd like to explore this option further, please reach out to us. We're here to help navigate this challenging situation.

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To your family's health + happiness.

~Candice N. Aiston