top of page
Search

Estate Planning and a Substance Abusing Adult Child

Writer's picture: Don DrakeDon Drake
Estate Planning Rhode Island
Estate Planning Connecticut
Attorney RJ Connelly III

"As we continue our discussion on estate planning, we've covered the various components and essential documents that comprise a comprehensive estate strategy," said professional fiduciary and certified elder law Attorney RJ Connelly III. "Now, it's time to confront some profoundly personal and sensitive issues that frequently emerge during this planning process. One particularly pressing concern for many families today is the scenario of an adult child struggling with a substance use disorder. This challenge has increasingly taken center stage in estate planning discussions, introducing unique obstacles and considerations for parents and guardians. Today, we're going to discuss estate planning and a substance abusing adult child."


An adult child grappling with a substance use disorder demands special attention in terms of financial management, healthcare decisions, and potentially even guardianship arrangements. Families must thoughtfully evaluate strategies to protect their child's inheritance from potential misuse, all while ensuring they have access to vital resources that can assist them in their journey toward recovery and rehabilitation.


Estate Planning Massachusetts
Adult children with addiction issues need special care

"This concern is cropping up more frequently among our older clients as they prepare to establish their estate plans," said Attorney Connelly. "I advise them to address this sensitive issue within their estate planning framework proactively. This could involve the creation of specialized instruments like supplemental needs trusts or spendthrift trusts, meticulously designed to oversee inherited assets judiciously. Such trusts can be expertly structured to guarantee that their adult child receives essential financial support while simultaneously safeguarding those assets from being mismanaged or depleted due to addiction."


In addition to establishing various trusts, parents should consider the appointment of a trustee or a professional fiduciary with the requisite expertise and emotional detachment necessary to manage their adult child's inheritance effectively. This strategy protects the family from potential conflicts and tensions concerning the inheritance. Further, it fosters healthier interpersonal dynamics, enabling family members to disengage from roles that could lead to discord and disruption within the family unit. The subsequent case example illustrates the rationale behind such a decision.


A Case Example

As a family navigates the tumultuous waters of a loved one’s addiction, the very fabric of the family unit comes under immense pressure, leading to fractures that can be difficult to mend. While the spotlight often shines on the addict, the silent casualties of this battle are the other family members whose lives become intertwined with the addiction. The user possesses a remarkable talent for exploiting the fraught relationships around them, instigating conflicts that can test even the strongest familial bonds. When financial resources enter the equation, the result can be likened to dousing a fire with rocket fuel, igniting chaos and heightening tensions.


Estate Planning Martha's Vineyard
Families can become enablers

A poignant case from a family residing in southeastern Massachusetts illustrates the dire consequences of allowing a family member to manage a trust or serve as a representative payee for someone suffering from substance use issues. The individual in question, we will call Charles, experienced multiple episodes of relapse despite his family’s unwavering attempts to support his recovery. Eventually, seeking refuge from the streets, he moved in with his sister and her family, who took on the responsibility of being his representative payee.


Initially, harmony reigned as long as Charles received a “yes” to his various financial demands. However, when he fell back into his destructive patterns, the relationship deteriorated rapidly. Charles resorted to stealing his sister's jewelry, raiding a piggy bank belonging to his innocent niece, and even pawning tools that belonged to his brother-in-law, causing significant turmoil within the family. This breach of trust triggered a profound rift when his brother-in-law finally insisted that Charles leave their home, suggesting he seek shelter at a homeless facility—a move that his sister vehemently opposed.


Soon, the calls began. Charles bombarded the household with incessant requests for money from his bank account at all hours, each refusal sparking an escalation in his behavior. When his sister inevitably said no, he retaliated by harassing her at work, nearly jeopardizing her job security. The situation became so dire that Charles momentarily relented when his brother-in-law threatened to involve law enforcement through a restraining order. Yet, his desperate measures led him to loiter around his niece’s high school, frightening her as he implored her to persuade her mother to hand over cash.


Estate Planning Rhode Island
Police were involved yet again

One afternoon, his aggression peaked, sending his niece running in fear back to school, where the principal felt compelled to involve the police. This intervention resulted in Charles’s arrest and yet another trip to detox and treatment. Recognizing the toll this had taken on her family, his sister relinquished her role as rep payee to a fiduciary trained to handle such delicate situations.


“I love my brother,” she reflected sadly, “but what he put me and my family through was sheer hell. He wielded every emotion available—from guilt to anger—to manipulate us into giving him access to his funds, even accusing my husband of misusing the money. This is an ordeal I never wish to endure again. My best decision was to hand over control of his finances to a professional fiduciary and a case manager. They worked together as a team to manage his money. Although this may not have significantly affected his addiction, it did help us stop enabling him by removing ourselves from that role.”


Such sentiments encapsulate the typical emotional landscape for families burdened by addiction—one that often stretches across years if not decades. On one side, family members recognize how addiction warps a person’s character; on the other, the relentless cycle of deceit, emotional manipulation, and the abuse of love leads to profound suffering and deep-seated emotional scars.


Keeping Everyone Safe

For parents of adult children facing substance use challenges, it is imperative to seek the counsel of an experienced estate planning or elder law attorney who possesses expertise in managing such sensitive situations. They can assist in developing a comprehensive estate plan that transcends traditional frameworks, incorporating strategic elements such as establishing a trust or other legal mechanisms specifically designed to safeguard the future interests of the adult child.


Estate Planning Massachusetts
Money for treatment is important

Creating such a trust allows for a clear articulation of the conditions under which assets will be allocated, ensuring that the child's unique needs are effectively addressed while preserving access to essential government benefits when applicable. This customized approach protects the adult child's financial security and facilitates ongoing support through the structured management of resources.


In defining the trust's terms, appointing a qualified professional trustee or fiduciary responsible for overseeing the trust and executing the directives with meticulous attention and diligence is advisable. This arrangement can simulate the ongoing support the child would have received from the parent throughout their lifetime, particularly during critical intervals of recovery and potential relapse.


For instance, the trust may be structured to establish a clear strategy for managing distributions contingent upon the child's involvement in recovery programs. During active engagement with rehabilitation, the trust could allow for more flexible access to funds, enabling the child to address expenses associated with their treatment. Conversely, in moments of potential relapse, the trust's provisions might restrict distributions to essential living expenses—such as housing and food—while also encompassing funding for vital services such as counseling or structured treatment programs to support recovery efforts.


A Final Word

"When developing an estate plan for families with an adult child who experiences a substance use disorder, it is essential to examine the potential implications of bequeathing substantial financial assets to that child," stated Attorney Connelly. "To protect both the family unit and the individual grappling with addiction, it is critical to establish a trust specifically tailored for the child with the substance use disorder. This trust should be administered by an impartial third party rather than a family member. Such an arrangement can help preserve family dynamics and foster a healthier environment for all parties involved, thus allowing the family the necessary time and space to heal."

Estate Planning Rhode Island

Please note that the information provided in this blog is not intended to and should not be construed as legal, financial, or medical advice. The content, materials, and information presented in this blog are solely for general informational purposes and may not be the most up-to-date information available regarding legal, financial, or medical matters. This blog may also contain links to other third-party websites that are included for the convenience of the reader or user. Please note that Connelly Law Offices, Ltd. does not necessarily recommend or endorse the contents of such third-party sites. If you have any particular legal matters, financial concerns, or medical issues, we strongly advise you to consult your attorney, professional fiduciary advisor, or medical provider.

13 views0 comments

Recent Posts

See All

Comments


bottom of page