15 Jun WOULD YOU GAMBLE YOUR ESTATE IF BRENDAN SORSBY WAS YOUR BENEFICIARY?
Brendan Sorsby has a gambling addiction. The 22-year-old was set to be the starting quarterback at Texas Tech University this year – until it was discovered that he placed thousands of sports bets totaling around $90,000 (including on his own college football team). First, he was ruled permanently ineligible by the NCAA. The NFL failed to allow a supplemental draft to permit him to play professional football this fall with the league. Most recently, the Canadian Football League (CFL) followed by stating it would not permit him to sign a contract to play professional football with any team in its league.
Sorsby admits he has a gambling addiction. This is a serious problem which he has begun to address through counseling.
If you have a beneficiary that has a gambling addiction, what steps can be taken to reduce risk that the beneficiary’s inheritance is not squandered?
If you want to name a beneficiary who has any addiction in your will or trust, then a trust should be used (within your will or trust) as you would not want the beneficiary to inherit outright. The trust would permit hiring specialists or counselors to help with the addiction. The trust could state conditions needed for a distribution (i.e., deletes all gambling application from a phone or computer, meeting with counselors for a time determined by the trustee, requirement of joining a support group such as Gamblers Anonymous, etc.). The trustee would be given sole discretion to totally or partially suspend distribution until the gambling expert counselor believes the financial well-being of the beneficiary is no longer at risk and can handle his or her own financial affairs.
Those with a gambling addiction would probably need to prove to the trustee with their financial records for a period of time to show that the beneficiary no longer gambles.
The duration of the trust should be considered due to the possibility of relapse.
Privacy laws should also be considered. The trustee must be authorized to obtain private health information to ensure compliance with any treatment plan. As a result, the trustee should be instructed to use a health care provider who is a specialist and who will consent to disclosing to the trustee the results of any test.
A trust advisor or protector could also be utilized to serve as a supervisor. The trust protector could be given the right to remove a trustee or to monitor the progress of the beneficiary and remove treatment professionals.
Various types of estate planning protection should be considered for any beneficiary with any type addiction – whether it be for gambling (such as Sorsby), drugs, alcohol, etc. – so that your loved one can be protected and encouraged to recover.
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