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
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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
MOON TOWNSHIP ❘ SPRING 2018 9