Today, I asked my good friend and probate attorney Steve Bliss in Temecula; from the Law firm of Steven F. Bliss Esq, “Can a trust help a child with a drug problem?” Steve Bliss is an expert when it comes to estate planning and helping families ensure that their future directives are skillfully executed when the day comes. Here is what he had to say:
A trust is a legal file where the grantor appoints a trustee to hold the legal title to the home on behalf of a recipient. These useful instruments can help establish guidelines for how inheritance is used. They can likewise assist protect against interception by a creditor or be inappropriately using acquired funds.
Drug Problem Implications
Individuals who have drug problems frequently have precarious lives. They might disappear from the lives of loved ones and might resurface to request for a loan. There are often countless dollars that are utilized to support this hazardous routine. Liked ones might be concerned about offering money to individuals with drug problems for worry that they might just use this loan to feed their habit. Even products bought for the person might not be safe from being utilized for the practice if the individual returns these items for money or trades the items for drugs or stuff. The person may run up charge card financial obligation and other financial obligation to support this expensive habit.
Lots of families have an enjoyed one who is handling problems brought on by addiction to drugs or alcohol. When they are developing an estate plan, it is essential to think about these possible implications related to drug abuse. Parents who have adult kids with these issues can take proactive steps to safeguard their child from receiving a large inheritance at one time so that the legacy is not squandered. They can also put systems in location to prevent a kid who is presently addicted to dangerous substances not to be able to manage or access the funds.
Problems with Receiving an Inheritance
Individuals with drug issues might misuse any inheritance that they get on drugs. In some situations, addicts might over-indulge in drugs when they get a significant amount of cash that might lead to an unintentional overdose. Debtors might have the ability to remove any distribution offered to the recipient.
Trusts can efficiently allow parents to offer an inheritance to their addict child while maintaining control over how the estate is structured. Parents can identify when and under precisely what scenarios the addict will get circulations. At the very same time, they can establish spendthrift provisions and other provisions that avoid a lender from taking the funds.
The parents establish who will act as the trustee or successor trustee. This should be someone in a more neutral position and not the addict or his/her offspring. An expert trustee might be selected, but this choice does make the procedure more pricey. The trust must consist of specific guidelines about when circulations must be reached, or the grantor may identify that the trustee ought to have total discretion over when the funds should be disbursed.
Moms and dads of addicted kids might consist of a variety of different arrangements to secure the addicted kid’s inheritance. They might include provisions needing to be kept an eye on drug or alcohol testing and a negative test result before agreeing to disbursement. They might need random or routine drug tests. They may provide an incentive to the recipient by offering a swelling amount if she or he maintains a job for a minimum quantity of time, finishes college or maintains an individual grade point average. The grantor might prefer to make payments straight to energy suppliers, college, proprietors or other financial institutions instead of offering funds directly to the addict. The trust funds may be utilized for the child’s counseling or enrollment in a drug or alcohol program.
The parents may decide to hold the child’s inheritance in a trust for a longer term than other recipients. The trustee might be offered directions about what to do in case he or she suspects drug usage.
A person with an addiction problem, betting issue or issues managing cash must not be called as a beneficiary of the trust. She or he must not be put in a fiduciary function. Similarly, his/her kids need not be designated in a role of this nature if doing so would make it too easy for the addict to manage the trust.
Parents who are concerned about a kid who has a history of abusing drugs might choose to contact an estate planning legal representative. She or he may be able to prepare a trust that considers this sordid history and attempts to safeguard the recipient with a drug problem. This is usually a complicated trust. A skilled estate planning attorney can help a client design a strategy that achieves his/her desires.
If you wish to speak to Steve Bliss about Estate Planning, setting up a trust, and or a Probate Mater please give him a call or visit his law firm in Temecula Ca.
His Phone Number is: +1 (951) 223-7000
Here is a Map to his Estate Planning and Probate Law Office
Here is a great video of Steven F. Bliss: