5. Help create a plan.
Assuming clients are receptive to the advisor’s conversation, the next step would be to help the client or household create a financial plan for recovery.
“This might be something to consider ahead of time as part of an overall health-care planning conversation,” said McManus. “It’s kind of planning for the unexpected. Advisors should have it in their mind that this is something they should at least be aware of, and if it does come up in a client relationship, they should already have a plan to address it.”
Recovery services differ widely—in-patient rehabilitation programs may be extremely expensive with costs rivaling those of long-term nursing care facilities.
Those battling addiction often relapse during the process, so creating a long-term financial plan to support rehabilitation and recovery is essential. Medicaid, Medicare and private health insurance typically offer only limited support for addiction services.
For clients dealing with relatives dependent on opioids, reporting suspected abuse may be part of the advisor’s fiduciary duty, said McManus. An advisor may have to leverage attorneys and other specialists to create buffers and boundaries within a client’s finances, prevent excessive spending and creating a distribution system for assets, like a trust.