You can do various things if you have been hurt in an accident to ensure your settlement money will last a lifetime. Creating a personal injury settlement trust is one of the finest options to do this.
There are a lot of reasons to think about this choice. Let’s examine a few of them in more detail.
Protect Your Assets
Whether you’re in a profession that attracts malpractice lawsuits or simply a person who owns assets that could be at risk if you become a victim of a crime, you must protect your wealth.
Using asset protection strategies can help you make the most of the assets you have worked long and hard to accumulate. It can also help you avoid losing those assets if they are subject to garnishment, attachment, or other legal actions against you by creditors.
A personal injury settlement trust is one of the most effective vehicles for asset protection. This type of account is designed to hold your injury settlement funds under specific rules and is overseen by the trustees you choose.
Protect Your Beneficiary
Personal injury claims are often made to compensate for the injuries, medical expenses, lost wages, and pain and suffering that resulted from a car accident, slip and fall, or medical malpractice.
These agreements can occasionally endanger the beneficiary’s ability to receive need-based benefits like Medicaid and Supplemental Security Income (SSI). An ideal instrument for preserving entitlements while safeguarding resources and income is a special needs trust.
A Settlement Protection Trust is one of the best kinds of special needs trusts for maintaining public benefits. Before creating such a trust, there are numerous things to consider.
First, consulting with a qualified attorney specializing in special needs trusts is important. These attorneys know the strict rules and regulations that govern special needs trusts.
Plan for Your Future
The benefits of a well-planned settlement can be far-reaching and long-lasting. The money may be used for several purposes, including medical bills and ongoing care costs. You can also use your settlement funds to fund a major life event such as an education or a home purchase.
Working with a financial professional is the best way to make the most of your settlement money. The right financial adviser can help you determine which accounts and assets are most appropriate to invest in and what tax strategies are best for your situation. This can include using a special needs trust or asset protection strategy. Because there is no one-size-fits-all solution, speaking with an expert attorney is critical to decide the best alternatives for you and your loved ones. It might be a difficult effort, but it is worthwhile.
Protect Your Family
Protecting your family from potential financial hardships is important if you have been involved in a personal injury lawsuit. Besides protecting your assets, a personal injury settlement trust can help you save your family’s means-tested benefits such as Medicaid.
If your loved one has been severely disabled, a personal injury settlement trust can help ensure your settlement money is available for their needs. These settlement funds can cover medical bills, supplemental income, and other essential expenses.
If you are receiving a settlement, consult an attorney before depositing the funds into your bank account or a special needs trust. This will help you make an informed decision that will be best for you and your family.