Addiction can develop in a variety of different scenarios. Some people have a genetic predisposition to addictive tendencies. Alcoholism and other forms of substance abuse may run in the family. Other times, personal choices, social pressure or traumatic experiences may lead to people developing substance abuse disorders.
Those who are close to an individual struggling with addiction are often in a difficult situation. They may have a complicated relationship with the addicted adult. They might loan money to that individual that they never recover or experience criminal activity, such as the theft of personal property. Families often have to make the difficult decision to stop providing financial support to those who abuse alcohol and other mind-altering substances.
Parents, grandparents and other family members of adults struggling with addiction may reach the conclusion that they want to disinherit that individual. Thankfully, there is an alternative estate planning solution available.
A direct inheritance could be dangerous
Even those with stable lifestyles may struggle with a large inheritance. People squander inherited resources on unnecessary shopping or burn through inherited resources in a matter of months. Those who struggle with substance abuse disorders are likely to misuse inherited property. They could go on a bender that puts their life at risk, for example.
Eliminating the inheritance of an adult struggling with addiction is one way to avoid contributing to their challenges. However, the feeling of abandonment and judgment that could come with disinheritance may ultimately worsen an individual’s struggles with addiction.
Providing structured support could be a viable alternative. Those who have close relationships with individuals with substance abuse disorders can establish trusts as a way of providing support without feeding the addiction itself.
A trust can limit the use of trust resources to specific types of expenses. The trustor funding the trust can provide instructions that require the trustee to directly pay outside parties rather than making cash distributions to the beneficiary.
With the right rules, a trust can help enhance the standard of living or opportunities for an individual with addiction. Trust resources can help pay for medical care or counseling that might ultimately help the struggling beneficiary improve their circumstances and overcome their addiction.
Considering challenging family circumstances carefully can help people craft legacies that have the best possible impact on their beneficiaries. The loved ones of those with addiction may need to change their estate plans to include trusts to better protect their loved ones.