When a family member, including a child, grandchild or spouse, suffers from addiction issues, there are a number of estate planning options which should be considered and addressed. Leaving a vulnerable loved one an inheritance outright at passing is likely harmful to that person’s wellbeing and others in the family. By way of example, leaving an opioid addict a lump sum of $200,000, presents not only a threat to his/her health, but also a risk that should be avoided.
At Isaac Wiles, we have created a protocol for estate planning which assists the addicted person and their family members by providing an income stream payable either for a period of years, or over their lifetime. This allows the individual to receive a financial distribution, with or without restrictions, on a monthly or quarterly basis without leaving him/her a large cash reserve, which could be an overwhelming temptation.
There are multiple planning options within this type of instrument. The complexity of the planning is dependent greatly upon the amount which will be left for that individual and their past history related to addiction.
Another difficult issue concerns the usage of healthcare powers of attorney along with other estate planning instruments. Our estate planning practice has developed an instrument which allows the addicted individual to consent to rehabilitation treatment (in advance) should he or she meet certain criteria (such as Narcan treatment). This arrangement allows for a progressive type of treatment and also provides for further planning measures the addict may face going forward. This type of document is particularly valuable and should be put in place when the addict is in a period of recovery.
A thoughtfully designed estate plan can serve as a supportive tool if a family member’s addiction has put demands on your current financial resources and those you have earmarked for carrying out your legacy after you’ve passed.When a family member, including a child, grandchild or spouse, suffers from addiction issues, there are a number of estate planning options which should be considered and addressed. Leaving a vulnerable loved one an inheritance outright at passing is likely harmful to that person’s wellbeing and others in the family. By way of example, leaving an opioid addict a lump sum of $200,000, presents not only a threat to his/her health, but also a risk that should be avoided.
At Isaac Wiles, we have created a protocol for estate planning which assists the addicted person and their family members by providing an income stream payable either for a period of years, or over their lifetime. This allows the individual to receive a financial distribution, with or without restrictions, on a monthly or quarterly basis without leaving him/her a large cash reserve, which could be an overwhelming temptation.
There are multiple planning options within this type of instrument. The complexity of the planning is dependent greatly upon the amount which will be left for that individual and their past history related to addiction.
Another difficult issue concerns the usage of healthcare powers of attorney along with other estate planning instruments. Our estate planning practice has developed an instrument which allows the addicted individual to consent to rehabilitation treatment (in advance) should he or she meet certain criteria (such as Narcan treatment). This arrangement allows for a progressive type of treatment and also provides for further planning measures the addict may face going forward. This type of document is particularly valuable and should be put in place when the addict is in a period of recovery.
A thoughtfully designed estate plan can serve as a supportive tool if a family member’s addiction has put demands on your current financial resources and those you have earmarked for carrying out your legacy after you’ve passed.
