Can You Use a Trust Fund to Pay for Drug Rehab?

Drug rehab treatment can be very expensive. Cost can vary widely from facility to facility, but a general ballpark figure for a typical 28-day stay averages around $20,000 nationwide. Some drug rehabs offer luxury conditions with amenities like a private seaside location with tennis courts, spas, acupuncture, on-staff chefs and gourmet meals. There may be a massage therapist on staff. Clients may have access to huge, sparkling blue indoor and outdoor swimming pools. Facilities such as this may charge much, much more without necessarily offering a superior drug treatment program. For someone without insurance, paying for even basic drug rehab is a real concern. Even insurance may only cover a portion of the total costs. Can you use a trust fund to pay for drug rehab? Of course you can, as long as the trust permits this kind of expense. To understand more, you must first understand a bit about how trusts operate in general.

Revocable Living Trusts

A trust is set up for the benefit of a settlor, trustee or beneficiary. The settlor is the person who creates the trust initially. The trustee is the person who is authorized to administer the conditions of the trust, which are determined by the settlor. The settlor and trustee may or may not be the same person. During the settlor’s lifetime, the trust is administered by the first trustee. After the settlor dies, the trustee next in line steps in to take their place in managing the affairs of the trust. This person is called a successor trustee. The trust clearly states what the powers of the successor trustee are. The trustee cannot violate the terms of the trust as set forth by the settlor. A beneficiary is a person named in the trust to receive certain benefits, usually financial in nature. There may be only one beneficiary. There could also be many of them.

The powers of a trustee are generally broad and discretionary. In other words, many decisions, unless otherwise forbidden or allowed by the trust, are up to the trustee. If you are a beneficiary of a trust, whether or not you can use trust funds for drug rehab will likely be up to the acting trustee. However, if the trust specifically says that you, as a beneficiary, are to be allowed to use trust funds to attend a drug rehab if necessary, then the trustee must financially arrange for you to do so. In this case, the trustee would have no choice but to follow the trust. If the trust is silent on the subject, then the trustee has the legal right to either grant or deny your request. If the trust expressly forbids such an expense, then the trustee cannot use trust funds to pay for it, even if they personally would like to. Some trusts will release a lump sum to a beneficiary at a certain age, typically around 25 or so. If you have such funds released to you, then you can generally use them as you please.

If you Need Help

We are professional drug treatment counselors here to help you 24 hours a day. While we are not attorneys, we can still give you some general guidance on how to contact your trustee if you’re the beneficiary of a trust. Your trustee is legally required to respond to you if you ask them to. We can help you find the best treatment facility for your needs. Just call us anytime at 800-411-8019. Let us help you on your way to a better future.