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Hugh Hefner estate plan shows different types of trusts available

When a Texan is contemplating strategies for an estate plan, the individual situation will largely dictate how they go about it. Circumstances and personal preferences will play a significant role. If trusts are the preferred method when drafting estate planning documents, there are many options available and individual desires can be paramount. This is exemplified by the details of the trust created by the late publishing magnate Hugh Hefner. In his estate plan, he made certain to include a stipulation that his heirs needed to maintain a certain lifestyle to get their portion of the trust.

In Mr. Hefner's estate plan, he states that his beneficiaries must avoid legal and illegal substances that can lead to dependence. If the person becomes dependent on a substance, they will no longer be part of the trust. The heirs include his widow and four children. The trustees will be relied upon to determine if the beneficiaries are using or taking illegal substances and have become dependent on them in any way; are using alcohol to the degree they are dependent on it; or are using other legal substances and are dependent on them and they have not been prescribed by a medical professional.

If the beneficiaries are unable to care for themselves or manage their financial affairs, the distributions that were to be given to that person or persons will be suspended. The trustees also have the right to request that the beneficiaries submit to drug tests if drug abuse is suspected. If this has been found to be the case and the disbursements are stopped because of it, the trustee can restart the distribution if it is shown there was no use for 12 months and the trustee determines that the person can care for him or herself and can manage their finances.

Since Mr. Hefner had a large empire with vast assets, his estate planning documents indicate he was seeking to ensure his beneficiaries did not become addicted to various substances with their available assets. For people who are in a similar situation or have their own concerns and desires for beneficiaries, it is possible that the various types of trusts can address these matters. A legal professional who has experience with formulating strategies for trusts can help.

Source: click2houston.com, "Hugh Hefner's Trust Reveals He Prohibits Drug Abuse By Family Members," Dec. 20, 2017

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