INDUSTRY INSIGHT
SUBSTANCE ABUSE
SPONSORED CONTENT
The Opioid
EPIDEMIC
MICHELE CONTI, ESQUIRE
Sadly, it has become standard to ask my clients whether they have any concerns related to a loved one with substance abuse. In the past, this subject was taboo – clients preferred to keep skeletons hidden. However, today with the opioid epidemic unyielding to discriminatory factors such as race, age and wealth, it has developed into an everyday discussion just as it has changed the background of clients’ plans.
Last year, President Trump declared a nationwide public health emergency to combat the opioid crisis as statistics show that approximately 142 Americans die every day from an overdose. Additionally, STAT forecasted that within the next decade as many as 650,000 Americans will succumb to their addictions.
Clients face unbearable trauma both financially and emotionally when living with a loved one with addiction. Apprehensive about
A ConCierge LAw Firm
s Estate Planning, including Wills, Powers of Attorney, Trusts
s Guardianships s Orphans’ Court Matters s Special Needs Trusts s Planning for Veterans
s Long Term Care Planning
s Trust Administration s Asset Protection Trusts everyone’ s safety and an addicted child’ s capricious behavior, the inner turmoil parents experience when deciding how to deal with their child’ s dependence may lead to upheaval, divorce and resentment. Siblings feel disregarded by parents who continue to finance their sibling’ s addiction.
Should you disinherit your child? Will this leave your addicted child destitute and unable to seek treatment after you are gone? Or would he / she contest your decision? An outright bequest instead? Has the child spent the inheritance during your lifetime rather than after you’ ve passed? Will this allow him / her to finance the contesting of the will upon your death, resulting in litigation – which can be both costly and lengthy? Others consider leaving monies to the addicted child’ s sibling( s) to manage and control. Nevertheless, this can cause a whole host of issues including increased resentment, loss of assets to creditors, mismanagement of funds, refusal to uphold your wishes, bankruptcy, divorce and even death.
Rather than worry about“ what if’ s,” we recommend the use of a discretionary trust for the addicted beneficiary. The most common distributions are for health, education, maintenance and support, but the IRS does not define what that means – which can cause disagreement between the trustee and beneficiary. In cases of substance abuse, we highly recommend that the trust remain pure: the trustee has the sole and absolute discretion to make or postpone distributions.
How do you choose a trustee? It is difficult, and many clients yield when considering a family member. Should you choose a bank or trust company? Many institutions hesitate due to the amount of funds involved, but particularly when there is addiction afoot. Rather, consider the use of a trust advisor and trust protector for consultation and administration approval, relieving the burden from the trustee.
Few non-professionals are skilled to deal with the turmoil and instability addiction wreaks on a family. Yet, during the course of advising clients, it’ s inevitable that we’ ll be drawn into this crisis. There is no perfect plan in this situation but by applying the strategies discussed, we can assist in crafting an estate plan to promote future stability and peace of mind. Contact us to see how we will stand by you during this tough time.
This Industry Insight was written by Attorney Michele P. Conti, an estate planning and elder law attorney. Michele attended Allegheny College in Meadville, Oxford University and Duquesne University School of Law, and received her LL. M. in Taxation from Villanova University. contilawllc. com s michele @ contilawllc. com 724.203.0163
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