Incentive Trusts Control Assets Meant To Benefit Addicts

The prevalence of opioid addiction in Louisiana and throughout America rightly concerns people who intend to bequeath an inheritance to someone troubled by serious substance abuse. A benefactor worried that money given to an heir addicted to narcotics will encourage drug buying can explore the potential of setting up an incentive trust.

The terms of an incentive trust tackle the issue head on. This estate planning tool will deny funds to someone who has not provided evidence of reform. The trust could fund rehabilitation as long as the person demonstrates a willingness to follow a drug treatment program. Requirements imposed by a trust could include routine drug tests, employment and substance abuse counseling. Compliance would enable distributions of funds. Failure to meet requirements would prevent distributions.

A trustee managing an incentive trust for an addict might need access to the beneficiary’s medical records. To view private medical information, a trustee must have a valid Health Insurance Portability and Accountability Act waiver. For an incentive trust to serve its purpose, the benefactor must choose a trustee capable of enforcing the terms of the trust.