The current “opioid crisis” going on here in the United States has caused many California residents to take the addiction of a family member into consideration during estate planning. Some residents are receiving advice that they should structure their estate plans in a way that limits an addict’s access to an inheritance — often using trusts. The problem with this is that many people beat their addictions, and the restrictions in a trust may no longer apply. Could trust litigation provide a beneficiary in this position with a way to unlock an inheritance?
Of course, an easy answer to this question does not exist. It usually depends on the circumstances. Since family members of someone with an addiction may not want to outright disinherit that person or provide just a small outright bequest to spend right away, many choose trusts. In order to limit the amount of control and objection a person with an addiction can exert.
In many cases, these trusts outline certain requirements to be met in order for the trustee to make distributions. Even though someone who has conquered an addiction has nothing to lose by complying with the terms (such as urine tests, proof of rehabilitation, etc.), the subjective opinion of the trustee may serve as an impediment to the beneficiary. While an individual is in the throes of an addiction, these precautions and additional trust terms protect the beneficiary from his or herself.
Should there come a time when the provisions of the trust no longer apply? Could it be possible that the beneficiary can handle controlling the assets in the trust? If a California resident who has beaten an addiction to opioids or some other drug believes that the trust no longer applies, but the trustee (and any others required to do so) will not consent to terminate the trust, the next step may be to initiate trust litigation. It may take some experienced legal help to determine what options are open to a beneficiary under these circumstances, if any.
Source: wealthmanagement.com, “The Opioid Crisis’ Impact on Wealth Planning”, Kevin L. Johns, Dec. 5, 2017