Dear Quentin,
A year and a half ago I learned a half brother of mine passed away with no living heirs except for my sister and me. We are to split $3 million. The inheritance is still in probate, and I expect that to be resolved by the end of the year.
My sister, who has been a paranoid schizophrenic her entire adult life, decided to stop taking her medication and eventually ended up in an airport, where police were called. She is now in a hospital being forced to continue her medication.
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She’s done this before. She’s a danger to herself, and I’m convinced that the money she is going to inherit will be the worst thing for her. I want to get control of her money so I can keep her in a safe place and prevent her from traveling again.
At the moment, we are both in Florida, but the inheritance is in a California probate court. Who should I talk to about this?
The Sister
Dear Sister,
She is fortunate to have you as a sister. And I’m sure the reverse is true.
Schizophrenia is a disease with a range of conditions, which can include psychosis. The American Psychiatric Association removed the term “paranoid schizophrenia” from the “Diagnostic and Statistical Manual of Mental Disorders Fifth Edition” (DSM-5) in 2013. The World Health Organization also excised the term from the “International Classification of Diseases” (ICD-11) in 2019.
It should be noted, even if it seems obvious to some: People with schizophrenia can lead productive, healthy and successful lives. Updating terminology around the disease has helped de-stigmatize it, and opened up more helpful conversations around mental health. Your sister’s main issue right now appears to be getting back on her medication so she can continue with her life.
Given that you both live in Florida, and the estate is already going through probate, you should hire a trust and estate attorney in your home state who, ideally, specializes in setting up trusts for people with disabilities. They can advise you on your options, which may include a special-needs trust, which can also help you plan ahead for your sister’s long-term care.
Your sister, if she is willing, could agree to give you power of attorney. In some states, you can obtain psychiatric power of attorney, which is akin to an advance healthcare directive or a medical power of attorney. But such permission must be granted by your sister when she is well and of sound mind to make such decisions.
Guardianship and conservatorship
A durable power of attorney gives the agent — in this case, you, unless you and your sister decide to appoint a third party — the power to make financial and medical decisions should your sister become incapacitated for a period of time. This is often used for an elderly parent with dementia, for example, or if a loved one has an accident and ends up in a coma.
Alternatively, you could, when she is well, talk to your sister about putting her inheritance in a trust that could disburse the funds as regular income, which could prevent her from making reckless decisions if she is going through a period of prolonged mental illness. It would also, in theory, help prevent others from taking advantage of her when she is in a vulnerable state.
You may need to petition the courts for guardianship or conservatorship, the terms of which vary from state to state. “Obtaining guardianship of an individual with mental illness is more difficult than it is for other disabilities, requiring more witnesses and research,” according to Gabriel Katzner, founding partner of Katzner Law Group, which has offices in California and New York.
“Work with an attorney who’s well versed in this area, not only for the building of a case but as a trusted attorney of record — required by most states — once guardianship has been granted,” he adds. “Guardianship is a serious responsibility, and you’ll want someone steeped in mental-health issues to advise you on rights and obligations as new circumstances arise.”
If your sister agrees to a power of attorney, conservatorship or trust, she must have the mental capacity to do so and not have acted under duress. “Unfortunately, contesting an estate plan by alleging a lack of capacity is common,” Katzner adds. “One way to mitigate this is to seek a professional opinion on [the person’s] mental health from a licensed mental-health provider.”
Your situation is not as unusual as you might think. Millions of Americans are affected by mental illness every year, and it can take a toll on their physical, social and financial lives, according to the National Alliance on Mental Illness. Approximately one in five adults experience mental illness at some point in their lives, and one in 20 experience serious mental illness each year.
Schizophrenia is a complex illness
This illness is complex. “Schizophrenia is a mental disorder characterized by disruptions in thought processes, perceptions, emotional responsiveness, and social interactions,” according to the National Institute of Mental Health. “Although the course of schizophrenia varies among individuals, schizophrenia is typically persistent and can be both severe and disabling.”
The effects can be serious. “Symptoms of schizophrenia include psychotic symptoms such as hallucinations, delusions, and thought disorder (unusual ways of thinking), as well as reduced expression of emotions, reduced motivation to accomplish goals, difficulty in social relationships, motor impairment, and cognitive impairment,” the organization adds.
Given that schizophrenia is an unpredictable illness and can often overlap with other mental-health disorders, it’s critical to act proactively. You’re doing the right thing now by asking what steps you need to take before you and your sister receive this inheritance. With or without her cooperation, you have many options open to you.
If your sister has difficulty holding down a job as a result of her recent refusal to take her prescription medications, this inheritance comes at an opportune time. A special-needs trust will allow you to plan for all or most eventualities: emergency funds, healthcare and housing costs, along with daily and monthly expenses.
I hope your sister gets back on track. I’m sure your brother would have wanted that.
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