You can’t just take the usual wording from a trust for a minor or a beneficiary with a disability and use it as a model. This type of trust needs to be designed to meet specific needs.
By: Jedediah McClure, JD
Key Points
- Specialized Trusts: Trusts for beneficiaries with substance abuse problems must be tailored to address their unique needs.
- Stages of Recovery: Understanding the stages of recovery is crucial for designing an effective trust.
- Incentives: Trusts can use non-monetary incentives to support the beneficiary’s recovery.
Important Definitions
- Substance Use Disorder: A condition characterized by an individual’s inability to control their use of substances such as drugs or alcohol.
- Transtheoretical Model: A model describing the stages individuals go through to change their behavior.
- Treatment Plan: A detailed plan outlining the steps and goals for a beneficiary’s recovery from substance abuse.
Understanding Trusts for Beneficiaries with Substance Abuse Problems
When planning their estates, many families face the difficult reality of addressing a loved one’s substance abuse issues. Creating a trust for a beneficiary with a substance use disorder requires careful consideration and specialized planning.
Identifying the Purpose of the Trust
Every trust should have a clear purpose. Parents should discuss with their attorney and other advisers to determine what role they want the trust to play in their child’s recovery. The trust can take either a passive or active role.
- Passive Role: The trust operates independently of recovery efforts, providing basic support or discretionary extras to improve the beneficiary’s quality of life.
- Active Role: The trustee works closely with the treatment team, funding rehabilitation and therapy services. Distributions are strictly tied to recovery-related expenses.
Understanding the Stages of Recovery
If parents opt for an active role, it’s essential that the trustee understands the stages of recovery, as outlined in the Transtheoretical Model:
- Precontemplation Stage: The beneficiary denies their addiction and resists change.
- Contemplation Stage: The beneficiary feels ambivalent about their addiction.
- Preparation Stage: The beneficiary experiments with small behavioral changes and plans for action.
- Action Stage: The beneficiary takes concrete steps to change their behavior.
- Maintenance Stage: The beneficiary maintains new behaviors and develops relapse prevention strategies.
- Relapse Stage: The beneficiary may relapse, but periods of abstinence lengthen over time.
The trust should support the beneficiary through these stages, focusing on long-term recovery rather than punishing relapses.
Creating a Treatment Plan
A crucial element of the trust is the treatment plan, developed with input from healthcare providers. Typical goals include:
- Remaining Drug-Free: Sustained periods of sobriety.
- Ongoing Therapy: Regular sessions with therapists and participation in support groups like AA or NA.
- Vocational Training: Proof of employment and skill development.
- Random Testing: Regular drug and alcohol tests to monitor sobriety.
- Avoiding Triggers: Steering clear of environments and individuals that could lead to relapse.
Offering Incentives, Not Cash
Trusts can include incentives to encourage compliance with the treatment plan. These incentives should be non-monetary to prevent misuse. Examples include:
- Paid Vacations: Rewarding significant milestones.
- Club Memberships: Promoting healthy social activities.
- Use of a Car: Facilitating employment or education, contingent on maintaining sobriety.
Practical issues may arise with monitoring compliance. The trustee must have the final say on whether incentives are earned, using both objective and subjective criteria.
Additional Information
- Regular Reviews: Periodically review the trust to ensure it continues to meet the beneficiary’s needs.
- Professional Guidance: Consult with professionals to ensure the trust is designed and managed effectively.
- Legal Considerations: Ensure the trust complies with state laws and is flexible enough to adapt to changing circumstances.
Frequently Asked Questions (FAQs)
Q: What is a trust for a beneficiary with a substance use disorder?
A: This type of trust is designed specifically to address the unique needs of a beneficiary struggling with substance abuse, focusing on supporting their recovery.
Q: How does a trustee monitor compliance with the treatment plan?
A: The trustee can require regular updates from healthcare providers, random drug tests, and proof of participation in recovery activities.
Q: Can the terms of the trust be changed if circumstances improve?
A: It depends on the flexibility built into the trust. Regular reviews with an estate planning attorney can help ensure the trust remains appropriate.
Q: What are non-monetary incentives, and why are they important?
A: Non-monetary incentives are rewards that do not involve cash, such as vacations or memberships. They reduce the risk of relapse by preventing easy access to money.
Q: How do I choose the right trustee for this type of trust?
A: Select a trustee who is trustworthy, understands the recovery process, and can enforce the terms of the trust without bias. Professional trustees can be a good option.
Take Action Now
If you need assistance with creating a trust for a beneficiary with substance abuse problems or have questions about how to support your loved one’s recovery, contact me today. At Supernus Law, we specialize in creating comprehensive estate plans tailored to your unique needs. Schedule a consultation with me, Jedediah McClure, to discuss your estate and ensure your plans provide the support and protection your loved ones need.
Contact Information:
- Phone: (618) 354-0302
- Email: jed@supernuslaw.com
- Website: Supernus Law Website
Don’t let outdated trust provisions jeopardize your family’s future. Let’s work together to protect your assets and provide peace of mind for you and your family.
DISCLAIMER
This post is for informational purposes only and is not intended as legal advice. Please do not act or refrain from acting based on anything you read on this site. You should always seek competent legal counsel before taking any legal action. Using this site or communicating with the Supernus Business & Law Center, LLC through this site does not form an attorney/client relationship.
