Estate planning can be complicated for harmonious families but can be especially difficult when there are family members who suffer from addictions, cannot properly manage money or are estranged from the family altogether. With the rise of drug addictions in the United States, this scenario is becoming increasingly and alarmingly common.
Parents who are dealing with adult children who suffer from addiction or are completely estranged may need assistance in creating an estate plan that is tailored to these situations. There are three main options and the one chosen depends on the goals of the parents, the circumstances of the future beneficiary and many other factors. Our estate planning attorneys can explain these options in depth and guide you in the direction that will be best for your situation.
Use a Trust
You can create a living trust and fund it with certain assets that a trustee will manage on behalf of your chosen beneficiaries. You can be very creative with the terms and require certain conditions to be met, such as a period of sobriety, before assets can be distributed. Our estate planning attorneys can provide you with many options for terms that can be included in a trust.
You can also draft your will with language that will create a trust upon your death. This is known as a testamentary trust. It is not created and funded until after you pass away. The testamentary trust can also include creative terms and conditions to ensure your assets are managed by a trustee and distributed to beneficiaries according to your wishes.
Smaller Inheritance
Another option is to simply leave this particular beneficiary a smaller inheritance. This can help in preventing this beneficiary from contesting the will. You can also include a no-contest clause, or in terrorem clause, in the will that states if the beneficiary contests the will, he or she loses the right to inherit at all. This often works because the beneficiary would rather take the smaller inheritance than contest and risk no inheritance at all. Take this risk assessment into account when deciding on the value of the smaller inheritance. Our estate planning attorneys can provide some insight into the best value and approach here.
Disinheritance
It is possible to completely disinherit a child, but not a spouse, under Maryland law. To do so requires careful planning and wording in estate planning documents. An experienced estate planning attorney can help you draft your documents carefully in order to prevent a future will contest. This may include writing a letter explaining your reasons for the disinheritance and proof that you were of sound mind at the time the documents were executed.
If you are struggling with decisions surrounding a difficult or estranged family member and need ideas on creating an estate plan that protects your assets as well as your other beneficiaries, contact our estate planning attorneys for a consultation. You can schedule an appointment by calling us at (443) 470-3599 or emailing us at office@stoufferlegal.com.
