When you are planning your estate, your biggest goal is often to protect and care for the people you love. But what happens when one of those people struggles with addiction? Whether it is drugs, alcohol or gambling, addiction can turn a well-meaning inheritance into a dangerous gift.
It is a hard situation to face, but you are not alone. Many families deal with this. And the good news is, you can plan for it. With the right tools, you can support your loved one without putting them or your wishes at risk.
How to plan around addiction
Leaving money to someone with addiction issues is not just about the money. It is about safety, stability and care. Here are a few ways to approach it:
- Use a trust, not a will: A simple will gives assets directly to the person. On the other hand, a trust gives you more control. You can name a trustee to manage the funds and decide when and how they are used.
- Choose a trust type that fits: A spendthrift trust protects the money from creditors and poor decisions. On the other hand, a discretionary trust gives the trustee full power to decide when your loved one gets support.
- Pick the right trustee: This person will manage the money and make judgment calls. It should be someone who understands addiction and can stay firm when needed. Sometimes, using a professional or a bank is one of the best moves.
- Set clear rules: You can ask for conditions, like regular check-ins or sobriety milestones. Be clear but kind in how you word these wishes.
- Leave letters, not just legal papers: A personal letter will not change the legal plan, but can explain your heart.
Planning around addiction is tough, but it is not something you have to do alone. You can benefit from getting legal help to create a plan that is safe and compassionate.