How Can I Plan For My Children Who Have Substance Abuse Issues, Bad Marriages, Or Difficulty Managing Money?
There are so many wonderful things that you can do with your estate plan to ensure that your beneficiaries receive the greatest possible life improvement. If you have a child with substance abuse issues, you might give serious consideration to requiring that his or her benefits be paid to them monthly over a term of years and each payment be preceded by a drug or alcohol test. If your child has been using drugs or alcohol, as evidenced by the test results, that month’s payment can be reduced or eliminated. In addition to the monthly stipend, your trustee may have the authority to assist your child in paying for treatment for drug and alcohol-related issues.
If your child is in the midst of a bad marriage, you definitely do not want him or her to inherit your money. The spouse who is not a good fit for your child may demand that the inheritance be placed in the family bank account so that the spouse can take half of it when they go to divorce court. Any inheritance for a child in that situation should be put into a trust for his or her benefit and a trustee should be appointed to distribute or spend that money in your child’s best interest, and to always do it in such a way that the estranged spouse does not have access to those funds.
The same principle can be used to assist your child who is having a difficult time managing money. If my daughter were to begin a risky new business, I would definitely insist that her inheritance be placed into a trust and that the trustee has the authority to help her but not give her money directly. Since she does not have direct access to the money, even if she were to lose a lawsuit, the trust would not be liable for that debt and the trustee could still ensure that she had a place to live and food to eat. Many of my thoughtful clients require that all of their children’s inheritances go into a trust to ensure that even if things change in the future, their child will not be destitute. I encourage you to give this sort of planning very serious consideration.
For more information on Estate Planning For Children With Issues In OK, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (405) 754-4166 today.
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