How to Leave an Inheritance to a Child with Addiction Issues (Without Making It Worse)
Passing It On: Estate Planning for Families · Michael Pevney
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Show Notes
What happens if you leave a large inheritance to a child who is struggling with substance abuse, gambling, or serious financial irresponsibility?
In this episode, I explain why leaving money outright to a vulnerable beneficiary can unintentionally cause real harm — and what I do instead when I design estate plans for families here in California.
When you leave money outright, it goes directly into someone's name with no strings attached. That lump sum can:
• Accelerate addiction
• Attract the wrong people
• Become vulnerable to divorce, bankruptcy, or lawsuits
• Disappear very quickly
I've seen how a well-intentioned inheritance can actually make a difficult situation worse.
That's why I often use properly structured revocable living trusts to protect beneficiaries — while still supporting them.
In this episode, I walk through:
• Why outright inheritances can be dangerous
• How I structure trusts to keep assets protected
• Paying rent, tuition, medical care, and rehab directly from the trust
• Using drug testing or sobriety milestones when appropriate
• Giving trustees discretion to pause distributions if necessary
• Protecting assets from divorce, creditors, and financial predators
• How a living trust avoids the expensive and public California probate process
This isn't about punishment. It's about protection. It's about preserving your legacy while protecting someone during a vulnerable time in their life.
If you live in Orange County or anywhere in California and you haven't set up a full estate plan — including a living trust, power of attorney, and advance healthcare directive — I encourage you to take that step.
You can learn more or schedule a free strategy session at:
👉 https://www.ocestateplanlawyer.com/
Pevney Estate Planning, PC
25201 Paseo de Alicia Suite 140
Laguna Hills, CA 92653
Subscribe for more California estate planning education, and feel free to reach out if you're serious about protecting your family and your legacy.