At SLS Wills and More, we understand that estate planning isn’t just about distributing assets to beneficiaries. It’s also about addressing the unique challenges that our loved ones may face, such as addiction. If you have a family member or friend struggling with addiction, you may be concerned about providing for them without enabling their habit. In this article, we will explore responsible ways to support someone with addiction in your Will without gifting them large sums of money. This article is similar to our recent article about supporting and providing for vulnerable beneficiaries.
The Challenge of Addiction
According to the GOV website, there were 289,215 adults in contact with drug and alcohol services between April 2021 and March 2022. There are many more that don’t consider their situation to be a ‘problem’ but many whose actions have the potential to cause family rifts etc. Addiction can be a devastating and complex issue, affecting not only the individual but also their family and friends. When you want to ensure that your loved one receives the necessary support while also safeguarding their well-being, a carefully crafted Will can make all the difference.
Avoiding Enabling Behaviour
It’s essential to avoid enabling addictive behaviours when planning your estate. Gifting a lump sum of money to someone battling addiction can potentially exacerbate their problems rather than helping them. This doesn’t strictly mean giving money to a gambler… Here are some responsible alternative behaviours to consider:
1. Setting Up a Trust
Consider establishing a trust in your Will, such as a Discretionary Trust or a Vulnerable Beneficiaries Trust (VPT), as previously discussed. These trusts allow you to appoint trustees who can make financial decisions on behalf of the beneficiary, ensuring that the funds are used responsibly.
2. Providing for Specific Needs
We wouldn’t recommend including conditions within the Will itself, instead we would normally suggest these go in the Letter of Wishes because the beneficiary may come clean during testators lifetime, so it might be possible for the testator to update their letter of wishes.
3. Appointing a Trustee
Appointing trusted individuals or professionals as the trustees of the trust ensures that someone responsible manages the funds. These trustees can make informed decisions about when and how much money should be distributed to the beneficiary, taking their best interests into account.
A Fictional Example
Let’s consider the case of John, a father who is deeply concerned about his daughter, Emily, who has been battling a substance addiction for several years. John wants to provide for Emily’s future without enabling her addiction. Here’s how John’s Will can help:
1. Establish a Discretionary Trust: John decides to create a Discretionary Trust within his Will. He appoints his sister, Sarah, as the trustee, knowing that she will act in Emily’s best interests.
2. Specify Conditions: In the trust document, John outlines specific conditions for distributions. He specifies that funds from the trust can only be used for Emily’s rehabilitation, medical treatment, and educational pursuits.
3. Periodic Reviews: John includes provisions for Sarah, the trustee, to conduct periodic reviews of Emily’s progress. This ensures that Emily is making positive steps towards recovery before receiving further financial support.
With this approach, John can provide Emily with the support she needs for her recovery journey, without the risk of enabling her addiction.
How SLS Wills and More Can Assist
SLS Wills and More offers comprehensive estate planning services in England and Wales, including specialised support for situations involving addiction. Our experienced team can guide you through the process of setting up a responsible and effective Will that takes your loved one’s unique circumstances into account.
In conclusion, it’s possible to provide for a loved one battling addiction in your Will without gifting them large sums of money that may worsen their situation. By establishing a trust, specifying conditions, and appointing trusted trustees, you can ensure that your support contributes to their recovery and well-being. To explore your options and create a responsible estate plan, reach out to SLS Wills and More today. Your loved one’s future is worth protecting, and we are here to help.
Tom Stansfield
