Estate planning and a loved one’s mental illness

On Behalf of | Nov 18, 2019 | Estate Planning

When a family member has a mental illness, this can create many obstacles for them as well as all of their loved ones. People may have a lot of concerns about their well-being and their future, especially if they count on a close relative for support. Estate plans can help provide for family members after someone passes away, but many people are hesitant to leave their assets with someone who is mentally ill. For example, they may be afraid that the individual will be incapable of managing the funds properly. Fortunately, there are a number of options to help in this area.

Sometimes, people set up a will and decide to hand down a portion of their assets to a loved one who is mentally ill. However, problems can arise in this situation. For example, a loved one may lose their eligibility for government programs that they count on, and they may be unable to manage the funds properly, squandering away the assets that they have been given.

In certain instances, people are able to address these concerns by leaving their money with another family member who is capable of overseeing the funds and ensuring that they are managed properly. Many people are able to appoint a trustee to oversee a discretionary trust or set up a special needs trust in order to help ensure that their loved one will be able to receive assets from their estate while taking into account a mental illness that they are dealing with. It is vital to review all of your estate plan options, especially if one of your beneficiaries is mentally ill.