There are many different situations in which you may want to put together a trust that helps to protect your beneficiaries from hurting themselves in the future. Some examples include children who are struggling with addiction, those who are spendthrifts and individuals suffering from mental illness.
As a parent, there’s no doubt that you have concerns about their care and the most appropriate way to leave behind assets to assist with that care. However, estate planning might differ in this situation when compared with other types of families. Using a trust with special purpose language is frequently the answer.
Traditional estate planning goals can be accomplished with a trust such as minimizing taxes, ensuring that the intended beneficiaries are named and avoiding probate However, it can also be tailored for more unique family situations involving addiction or illness.
Parents can now add language that allows the appointed trustee to deal with the bad as well as the good, thereby incentivizing a child to meet certain requirements in order to receive a distribution from the trust. For example, you might outline that staying on a certain medication that helps the child control their addiction is necessary. proper planning should also include conversations about a HIPAA release and healthcare power of attorney after the child reaches age 18. Consulting with a knowledgeable New Jersey estate planning lawyer is strongly recommended.