Puff, the Magic Dragon, and the Estate Planner
34 Pages Posted: 22 Jan 2016 Last revised: 27 Jun 2016
Date Written: 2016
With the legalization of medical and recreational marijuana in almost half of the states, practitioners need to be aware of interface between marijuana and estate planning. This article provides a discussion of the major issues that arise. After bringing readers up-to-date with the history of legalized marijuana, the article focuses on how marijuana use may impact a user’s capacity to execute a will and other estate planning documents. The article then examines other estate planning concerns such as will and trust provisions conditioning benefits on the non-use of “illegal drugs” and the impact of marijuana use on life insurance policies. The article wraps up with a discussion of how an estate planner may deal with marijuana-based assets when planning an estate and how to value those assets after the owner has died.
Keywords: estate planning, wills, trusts, marijuana, life insurance, testamentary capacity
JEL Classification: K11
Suggested Citation: Suggested Citation