Settlement Preservation Trusts
Although the amount of a personal injury settlement may seem substantial at the time, the sad truth is that more than 90 percent of the settlement funds awarded to the victim of a personal injury are spent within five years.
Hook Law Center will help you design a settlement preservation trust which will protect those funds from exploitation or misuse. The trust is irrevocable and can, if desired, involve a professional trustee as a sole trustee or as a co-trustee to support you or your family member.
A settlement preservation trust is able to offer a much-needed combination of controlled liquidity and financial flexibility.
Settlement preservation trusts allow fund access, as needed, while also retaining eligibility for Medicaid and Supplemental Security Income. Moreover, it protects the remaining settlement from settlement discounters. Periodic payments can be adjusted for need and will eliminate estate tax liquidity issues.
Structuring a settlement preservation trust is attractive for a number of reasons, especially the flexibility that is available within the structure. Hook Law Center estate planning attorneys can assist you in placing the entire settlement in the trust, or can designate just a portion of the remaining settlement in a trust as a safety net, depending on individual needs and circumstances. Funding the trust can be as simple as a single deposit from any source, such as a cash settlement deposit originating directly from the plaintiff, or as complex as ongoing payments from an annuity structure. Distribution of the fund can be in the form of adjustable periodic medical and tax payments, or just for emergencies, as taxable or tax-free distributions.
Work with the experienced settlement preservation trust attorneys at Hook Law Center to design the trust to protect your financial award.