Addiction can tear individuals and families apart.

Addiction is insidious.

Most addicts were not seeking to cede control to a substance or behavior.

It may have started with the desire to replicate the good feelings or avoid the negative feelings afforded to them by the chosen vice.

As the title of the fourth studio album by the Doobie Brothers astutely observed back in 1974, "What were once vices are now habits."

So it goes with additions.

Whether it was a steep fall or a gradual decline, the vice grew in power while their own agency seemed to grow weaker.

Loved ones often feel helpless in the fight against the substance.

Family "interventions" may or may not be successful.

For parents who have children addicted to substances or behaviors like gambling or shopping, the fear of an inheritance being used to fuel destructive actions is legitimate.

According to a Kiplinger article, "Designing Trusts for Substance Abuse Problems," strategic estate planning can help.

Estate planning can protect inheritances from children who have an addiction to substances or behaviors like gambling.

Why Is Trust Planning Important for a Child with Addiction?

A direct inheritance to a person with an addiction can cause great harm rather than good.

Trusts with clear directions for managing distributions can protect both the financial inheritance and the adult child who abuses substances.

Although trusts can be helpful when administering inheritances for minors or loved ones with special needs, the terms of a trust for an addict should address their specific needs and challenges in recovery.

How Can a Trust Support Recovery?

Trusts can be used to directly or indirectly support the recovery of an addict.

When parents designate trust assets to be used for their addicted child's basic needs, such as food, healthcare, and housing, the trust focus is more indirect.

For parents who would like greater involvement in recovery, the trusts may give the trustee authority to participate in the treatment plan for the addict while providing funds to pay directly for rehabilitation, therapy, and continued support.

Parents may question whether distributions should be used to fund treatment or be tied to recovery progress.

Regardless, for the benefit of all concerned, any inheritance must be protected "for" and "from" beneficiaries with addictions.

Discussing questions and concerns with an experienced estate planning attorney can ensure the trust aligns both with your goals and the long-term needs of your child.

What Is the Recovery Process Like?

Many parents feel helpless and confused about the recovery process for their addicted children.

Understanding the process can be slow with various setbacks, but it enables parents to plan accordingly.

The Transtheoretical Model is one model of behavioral change commonly used to outline the various stages of recovery.

What are these stages?

Precontemplation. 

In this first stage, the addict is not prepared to address the addiction.

Contemplation. 

In the second stage, the addict can acknowledge the problems associated with the behavior but is not yet prepared to take action.

Preparation. 

In the third stage, the addict starts taking small steps while planning for more significant changes.

Action. 

In the fourth stage, the addict works to change behaviors and engage in addiction recovery.

Maintenance. 

In the fifth stage, the addict will develop and practice coping strategies to maintain sobriety.

Relapse. 

It is common for addicts to relapse.

Rather than being seen as a complete failure, relapses can be considered part of the learning process.

When trusts are designed to support recovery, relapses should not be punished.

Instead, the trust could resource the child to help them on the continued journey toward addiction recovery and a healthy future.

Should Incentives Be Used in a Trust for a Child with Addiction?

Although incentives can be helpful in recovery motivation, it is often advisable to avoid cash.

Why?

Cash deposits can often heighten the risk of relapse through spending on the substance or behavior.

What incentives can be offered instead?

Alternatives to cash incentives include using a vehicle, covering fitness membership costs, or paying for vacations.

The trustee should be able to determine when a goal has been met to warrant the incentive so any rewards align with genuine progress toward recovery.

Estate Planning for a Child with Addiction: Creating a Trust that Supports Recovery.

Estate planning to account for a child with addiction can support long-term recovery and wellness.

Specialized trusts allow parents to provide support while minimizing the risk of contributing to harmful habits.

An experienced estate planning attorney can help you protect your child with safeguards in your estate planning.

What are Key Takeaways for Addressing Addictions via Estate Planning?

A strategically structured trust can help you protect an inheritance for and from your addicted child.

Trusts can be set up to support addiction recovery and incentivize progress while avoiding the pitfalls of providing cash distributions.

Because trusts are complex and working with addicts presents its own challenges, you should select a knowledgeable and capable trustee.

Ultimately, trusts should account for addiction relapses and support your child in getting back on track for recovery.

If you have a loved one struggling with addiction and would like to address this dynamic in your estate plan, schedule a consultation at our Overland Park estate planning office.

This post is for informational purposes only and does not provide legal advice. You should contact an attorney for advice concerning any particular issue or problem. Nothing herein creates an attorney-client relationship between Harvest Law KC and the reader.

Reference: Kiplinger (Mar. 8, 2019)" Designing Trusts for Substance Abuse Problems"