At the time that you created your estate plan, your chosen beneficiaries may have been leading drastically different lives than they are living today. Perhaps your beneficiaries were your young children who have now grown into adulthood. Unfortunately, life has a way of throwing problems at us all, and drug or alcohol addiction is one of the more common struggles that many families in America face. If your beneficiary is now struggling with alcohol addiction, consider modifying your estate plan.
A Beneficiary’s Alcohol Addiction May Trigger an Estate Plan Update
While the more common reasons for updating an estate plan are somewhat obvious, such as the loss of a loved one, a divorce, or the birth of a child, alcohol addiction presents its own unique issues that warrant a modification of your trust and estate plan. These reasons include the following:
- Addiction is a disease for which there is no cure. While your loved one may be in recovery now or even at the time that you created your estate plan, he may relapse at some point. It is important to update your estate plan as these changes occur. A loved one struggling with addiction can be harmed if he has instant access to a substantial amount of cash.
- While this is in no way a reflection of your love for your beneficiary who is struggling with an addiction, you may want to think of the best interests of the other beneficiaries when you consider revising your trust. If your wishes are to pass your hard-earned assets on to all of your loved ones, in some cases you may prefer to adjust the allocation of distributions of the trust assets to give greater access to those who are currently not battling addiction. This can be done with a simple update to your estate plan.
- The costs of treatment for the disease of addiction can be astronomical. The average cost for an inpatient, 28-day stay at a private facility is approximately $25,000. Outpatient rehabilitation can cost an average of $10,000. Unfortunately, most insurance does not offer much assistance. If your loved one is battling alcoholism, revising your trust can set aside funds specifically for this cost. There are many facilities in Anaheim, such as the Anaheim Lighthouse, the Oasis Drug Treatment Center, or the Alcohol and Drug Rehab Center of Anaheim; or, if you would like to look outside Anaheim, there are countless options available.
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