Estate Planning When Your Child Struggles with Addiction

Planning what happens to your money and property after you’re gone is a big deal. But it gets tricky when you have a child who struggles with addiction. You want to take care of them, but you also want to make sure your hard-earned assets don’t make their problems worse. Here are some key things to think about.

1. Don’t Give Money All at Once

If your child has addiction issues, handing them a pile of cash might not be the best idea. They could spend it on drugs or alcohol instead of things like rent or food. Instead, you can set up a trust. A trust is like a special box for your money. You pick someone you trust to be in charge of it (called a trustee). They give your child money little by little, and only for things you say are okay, like bills, treatment, or schooling.

2. Pick the Right Trustee

The trustee is extremely important. This person needs to be strong enough to say “no” if your child asks for money for the wrong reasons. (Or to ask effective questions when the real reasons are unclear). It could be a family member, a close friend, or even a professional like a lawyer. Make sure they care about your child, understand their situation, and won’t cave under pressure.

3. Add Rules to Help Them

You can put rules in the trust to encourage your child to get better. For example, you could say they only get money if they’re in a treatment program or passing drug tests. This way, your estate plan supports their recovery instead of their addiction.

4. Think About Other Kids or Family

If you have other children or people you want to take care of, you might worry about being fair. Giving less to the child with addiction issues could upset them or cause fights. A trust can help here too. You can explain that the money is there, but it’s protected for their own good. Talking to a lawyer can help you figure out how to balance everything.

5. Talk to a Lawyer

Estate planning isn’t a one-size-fits-all thing. A qualified lawyer can help you make a plan that fits your family. They’ll use words like “revocable trust” or “incentive clauses,” but don’t worry—they’ll explain it in a way you'll understand.

Final Thoughts

It’s tough to plan for a child with addiction, but you’re not alone. By setting up a trust, choosing a good trustee, and adding smart rules, you can protect your child and your legacy. Take it step by step, and get help from a professional to make sure it’s done right.