For parents of an adult child struggling with addiction or alcoholism, estate planning can raise difficult questions. You want to provide for your child’s future, but you may worry that leaving them a substantial inheritance could create additional challenges.
The good news is that you don’t necessarily have to choose between leaving your child an inheritance and protecting their well-being.
With the right estate planning strategy, you may be able to provide financial support while putting safeguards in place to protect those assets.
The Risks of Leaving an Inheritance Outright
When someone inherits money directly, they generally have full control over how it is spent.
For an adult child struggling with substance use, receiving a large sum of money at once may create risks, particularly if they are navigating treatment or recovery.
While disinheriting your child might seem like the safest option, it could also mean removing financial resources that might otherwise help them maintain stable housing, access healthcare, or build a more secure future.
Fortunately, there is another approach worth considering.
How a Trust Can Protect Your Child’s Inheritance
One option is to establish a trust that holds assets for your child’s benefit rather than distributing their inheritance directly.
With a properly structured trust, you can appoint a trustee to manage the funds and make distributions according to guidelines established in your estate plan.
Depending on the trust’s terms, those funds could help cover expenses such as:
- Housing and utilities
- Healthcare, counseling, and treatment
- Education or vocational training
- Everyday living expenses
- Other financial needs that support long-term stability
For example, instead of receiving a $200,000 inheritance outright, your child’s inheritance could be held in a trust with specific guidelines that you establish. You determine the terms governing how and when funds may be distributed, and the trustee you select is responsible for managing those funds and making distributions in accordance with your wishes for the benefit of your child as outlined in the trust.
This approach allows you to provide meaningful financial support while reducing the risks associated with unrestricted access to a large inheritance.
Choosing the Right Trustee
Selecting a trustee is an important part of this planning process.
Your trustee should be someone who can make responsible financial decisions, understand your intentions, and act in your child’s best interests while following the trust’s terms.
Depending on your family’s circumstances, this might be a trusted relative, another responsible individual, or a professional trustee.
Estate Planning That Supports the People You Love
Every family’s circumstances are different. An experienced Rhode Island estate planning attorney can help you explore trust options designed around your child’s needs and your long-term goals.
Estate planning isn’t just about what you leave behind. It’s about making sure what you leave behind actually helps the people you love.
At McCarthy Law, we help Rhode Island families create thoughtful estate plans that reflect their unique circumstances. Contact our team to schedule a free discovery call and explore your options.
About the Author
Attorney Whitney R. Anderson is a Rhode Island estate planning attorney at McCarthy Law, LLC, with over a decade of experience helping individuals and families navigate complex and sensitive family legal matters. A Newport native and Super Lawyers Rising Star honoree, Whitney takes a compassionate, personalized approach to helping clients protect their assets, provide for loved ones, and plan for the future. She is committed to making complex legal decisions more approachable through clear, practical guidance.
This article is for general informational purposes only and does not constitute legal advice. Reading it does not establish an attorney-client relationship.