Using a trust when you have a child with alcohol or addiction issues

Attorney Tom Olsen: Chrissy, here's a text from somebody, and they simply say, "Do I need a trust?" That's a very broad question. Let's talk about it for a few minutes. First of all, when you hear people talking about trust out there, they're all talking about the same thing, and that is a revocable living trust, also known as a trust. People are using generally for the purpose of avoiding probate. When I say avoid probate, I really mean avoid attorney's fees, but there's a second reason that people are often using trust, and that is this, that if you're a young married couple, you got young kids, six, seven, eight, you need a trust because if mom and dad both pass away, you can't leave that kind of money to an eight-year-old, you got to put it in trust for them.

If you're older and you want to leave money to your young grandkids, that would be another reason to use a living trust. We're all about helping people to avoid probate here at the Olsen Law Group in Orlando. Sometimes we use a trust, sometimes we don't.

Attorney Chris Merrill: We do. There's two other examples that I know are common in addition to what you just mentioned, Tom. I just got off the phone at having a consult with this, and that is adult children with addiction issues.

Attorney Tom Olsen: Oh, yes.

Attorney Chris Merrill: That's common, as well as young children, it's the same situation. Then why do we have to have a trust? Because we know that these children are not able to get it outright. Again, adult in addition to young children, also adult children, it is a reason for us to do a trust if you have any adult children that have addiction issues. Then a fourth major category, if you will, for doing a living trust, is real estate, multiple pieces of real estate. That would be a reason, again, to do a living trust, because you have multiple, again, five, six, seven and/or property out of state.

Those are all good reasons to do living trust. We do do living trust every week. However, people know by listening to us we're all about keeping it simple. We are not just automatically creating a living trust for all of our clients, we are doing it where there's a need. Otherwise, we want to do a last will and testament for our clients. Why? Because we want to help them to keep it simple.

Attorney Tom Olsen: Chrissy, that is a great point. One thing I want to say to listeners out there is that we talk to so many clients, we do so much estate planning for people throughout the state of Florida, and how common it is that our clients have at least one child with alcohol or addiction issues, and they always say, "Oh, I'm a little bit ashamed about this." Folks, what we want you to know is it is so common out there, so don't. It is happening everywhere.

Attorney Chris Merrill: Yes, exactly. Tom, thank you for that, for your words, because that's exactly what I just said to this client. I said, "Don't be concerned." We are here to reassure them that it is more common than people realize, and the most important thing is we're here to help you. We're here to help you because we want to give you a peace of mind that you will have things set for all of your children, including those that may have an addiction issue.

That is why it is very important to make sure that you do do legal documents, that you do do estate planning, so that things are okay for them. We put it in writing.

Attorney Tom Olsen: If you had a child with addiction issues, and you left them a large sum of money, that might just very well be the thing that ends their life, with that kind of money.

Attorney Chris Merrill: Correct. Exactly.

Attorney Tom Olsen: What we can do instead is leave their share in trust, and then the trustee of that trust doesn't have to give money directly to the child. The trustee can pay expenses on behalf of the child, so rent, a mobile phone, a food allowance, things just enough to keep going, and hopefully someday they can get in some recovery.

Hey folks, my name is Tom Olsen. The name of the show is Olsen on Law.