Addiction profoundly impacts many families in Florida, taking forms such as drug, alcohol, gambling, or prescription medication dependency. As families confront these challenges, it’s essential to understand how estate planning—and specifically, the strategic use of trusts—can safeguard the welfare of affected loved ones..

 

  • Approximately 8% of Florida residents are using illicit drugs at any given time.
  • In 2020, over 7,500 Floridians died from drug overdoses.
  • Florida ranks second in the nation for overdose deaths, following California.
  • Nearly half of Florida’s population struggles with alcohol dependency.

 

Families facing addiction are increasingly seeking ways to secure the well-being of their loved ones. One effective strategy in estate planning for families dealing with addiction is the creation of trusts. It’s essential to work with an experienced Estate Planning Attorney who can tailor these trusts to your family’s specific needs, ensuring that they operate as intended and provide the necessary protections without unintended complications.

Florida Estate Planning Trusts for Asset Protection

For families with a loved one struggling with addiction, the unsupervised transfer of substantial sums of cash or valuable assets can exacerbate the challenges they are facing. Trusts allow families to structure the distribution of assets in a way that provides ongoing support while also protecting against the potential misuse of funds due to addiction-related issues.

 

There are various types of trusts that can be employed in estate planning for families facing addiction. Some we recommend include:  

Discretionary Trust 

One common option is a discretionary trust, which grants the trustee the authority to make decisions regarding the distribution of assets. This can be particularly valuable when dealing with beneficiaries who may not have the capacity to manage their own finances due to addiction. 

Spendthrift Trust 

Similarly, the use of a spendthrift trust can be beneficial in safeguarding assets from being depleted due to addiction-related compulsive behaviors. A spendthrift trust provides an added layer of protection by restricting the beneficiary’s ability to access the trust assets directly, thereby preventing the assets from being dissipated recklessly.

Trusts to Fund Addiction Treatment 

Trusts can be designed to offer emotional and relational assistance for family members dealing with addiction. For instance, a trust can be set up to fund addiction treatment programs, counseling services, or other types of support that can aid in the beneficiary’s recovery and overall well-being.

 

Additionally, trusts can be structured to maintain asset protections while enabling loved ones to benefit from programs such as Medicare and/or Medicaid for long-term care and treatment without depleting the family’s assets. This can be done while still allowing for safe disbursements for the benefit of the loved one. 

Protecting Other Family Members’ Interests 

Another important consideration for families affected by addiction is safeguarding the interests of grandchildren and potential grandchildren from the multigenerational impact that addiction can have.

 

Language can be incorporated into the trust to authorize the trustee(s) to set aside cash, accounts, or other assets for the benefit of a minor beneficiary while also safeguarding those assets from the minor’s parent or guardian if necessary. The trustee can be given the authority to establish additional constructive trusts to protect the interests of the youngest generation.

The Vital Role of the Trustee 

It is crucial to carefully consider the selection of trustees for trusts intended to provide support for individuals facing addiction. The trustees should be capable of making decisions that serve the best interests of the beneficiary, and they may also require the skills and understanding to manage the nuanced dynamics of addiction and inheritance effectively.

 

A trustworthy trustee making distributions under the discretionary provisions of the trust prevents the beneficiary’s creditors from attaching an interest in the trust’s contents. This still allows the trust assets to pay for the beneficiary’s ongoing care, treatment, and necessities such as housing, gas, and food. 

 

A neutral trustee can require drug screenings or sobriety tests to ensure the continued well-being of the beneficiary by controlling the conditions under which disbursements may be made. These trustees can be directed in various ways regarding how, when, and to whom to make disbursements, making them a good alternative to other family members who may not share your concerns or who may be more susceptible to emotional manipulation by the addicted beneficiary.

Estate Planning Attorney in Tampa 

Families navigating the challenges of addiction within the context of estate planning need to learn more about the invaluable tool a trust can become. An Estate Planning Attorney in Tampa from Mortellaro Law can help you establish trusts tailored to the specific needs of family members grappling with addiction. You can protect assets, provide ongoing support, and contribute to the overall well-being of the individuals involved. 

 

Reach out to Mortellaro Law for compassionate and strategic estate planning that offers stability and security during challenging times.