6

How would you pass or gift assets to a person with a gambling addiction?

I suppose a drug addiction would be easier to deal with, since in this case the addicted person won't be able to blow it all in a couple of weeks.

I would like to put assets in a trust whose beneficiary gets paid on a weekly or monthly basis.

  • 1
    Setting up a trust may be a way to do it - basically you can create rules about when withdrawals are allowed. However, it may be expensive to start and have continuing operating costs [paying for a lawyer's time to administer it, etc.]. – Grade 'Eh' Bacon Dec 13 '17 at 14:51
  • 3
    Agree with 'Eh' - although there may be no way to fully protect them (other than not giving them money). Another option may be making attending a gambling addition clinic or support group a condition of receiving the money. Use the money to solve the problem, not the symptom. – D Stanley Dec 13 '17 at 15:04
  • Setting up a trust is definitely the way to go. A lawyer will be able to incorporate all of your preferences and set up the trust exactly according to your specifications. For example, money will not start until a rehab program has been successfully completion, and trust payouts are conditionally paid out based on confirmation of continued attendance of addiction meetings. The only barrier is the administrative cost. – acousticismX Dec 13 '17 at 16:56
  • Could the trust payouts be coupled to cost-of-living or perhaps directly pay cost-of-living expenses so that the money doesn't touch the addicted persons own hands? Without intervention this may still enable the addictee because they can just blow the rent since the trust covers it though – Freiheit Dec 13 '17 at 21:53
  • 1
    Some casual googling for "gambling addiction trusts estates" led to pages like this: gierachlawfirm.com/… – Freiheit Dec 13 '17 at 21:55
2

There is a thing called a "spendthrift trust" which addresses exactly the kind of situation you describe, where a person wishes to make a legacy to another person who has... issues--whether they be gambling, drugs or alcohol, or simply a wasteful lifestyle.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.