People establishing estate plans often choose their closest family members as their beneficiaries. They want to leave everything they own to spouses, children, grandchildren and other loved ones. Most people imagine that an inheritance will improve the life of a beneficiary.
However, there are sometimes circumstances that raise questions about whether an inheritance could do more harm than good. An ongoing substance abuse disorder could leave someone frightened about naming an addicted family member as a beneficiary.
Disinheritance is not the only option
It is only logical to worry that individuals struggling with addiction might use any sizable windfall they receive to feed that addiction. Particularly when exacerbated by the grief of losing a loved one, substance abuse can overpower a person’s rational capabilities.
Some people believe that disinheriting a loved one with an addiction is their only option. However, there is an alternative. Creating a trust may allow a person to provide an inheritance to a loved one struggling with drug use or alcohol abuse.
They can prevent the misuse of inherited resources by providing clear instructions for a trustee about distributions. They can even limit what a beneficiary uses trust funds for, such as college tuition or rehabilitation services. Some people who create a trust take things a step further and require that people pass drug tests to receive any distributions from a trust.
There are many ways to prevent the abuse of an inheritance by properly funding a trust. Strengthening an estate plan by adding additional documents beyond a will can help people provide support to all of their close loved ones.