When an accident results in injury, individuals may seek compensation from another party. For a victim of an accident to be awarded compensation, they must prove the defendant displayed negligence or gross negligence; which was responsible for the victim’s injury. Should the victim receive compensation, it may be issued in various formats. The victim may receive one large lump sum paid following the hearing. Or, the award may be divided into smaller payments issued periodically. Though it may be ordered by the court to issue a monthly check, precautions should be established to provide a plan for the assets in the event of an emergency. There are methods available in revising a trust or estate plan to include the personal injury settlement.
Contact an Attorney
Revising a will or trust may contain legal hurdles that could be difficult to overcome on your own. The guidance and advice of an estate planning attorney may be beneficial when revising an estate plan. Inform them of the details regarding your personal injury award. The lawyer may ask the following questions to help better understand your situation; which may help provide them with a baseline to begin revising.
- Will you be changing any beneficiaries who were named in your previous will?
- Will you have any money left over after paying your medical expenses or any other costs that were related to your injury?
- Will there be any residual medical expenses left over after you pass away? In some cases, you could end up with more than you realized if your settlement award extends far beyond your life expectancy.
- Will you be adding any additional beneficiaries that are not currently listed?
Break Ups, Separations and Divorces
After a severe accident, you may be subject to long term disability. The accident may have resulted in decreased mobility and function; which may require you to alter your living situation. The change in living situation, as well as the effect the injury may have on your career, can be taxing to not only you, but your partner as well. In the event that you and your partner separate after an accident, you may wish to alter your estate plan. An attorney, like an estate lawyer Sacramento can rely on, should be familiar with the necessary steps required to change beneficiaries.
Regardless of the changes to your estate plan you wish to make, an estate planning attorney may be able to provide insight on whether the change is feasible, legal, and the steps that may be required. Unfortunate events may occur in your life, such as a personal injury suit or a divorce; thankfully, there is help available when it comes to planning your estate.
Thanks to our friends and contributors from Yee Law Group for their insight into estate planning and will revisions after a settlement.