Protecting Assets From A Dog Bite Lawsuit

Winning a lawsuit for a dog bite injury can result in significant compensation, including damages for medical expenses, lost wages, and pain and suffering. However, safeguarding those assets requires proper planning. A lawyer, like a dog bite lawyer, knows that without a strategy, funds from the settlement may become vulnerable to taxes, creditors, or unintended distribution. Estate planning can be a practical way to protect your financial future and maximize the benefits of your award.

Why Asset Protection Matters After A Settlement

Receiving a financial settlement or court award can provide much-needed relief after a serious injury. However, new assets can bring risks. Lawsuit awards might be targeted by creditors, or they could complicate eligibility for certain benefits or assistance programs. Estate planning tools are essential to maintaining control over these funds and ensuring they are used as intended.

Using Trusts To Safeguard Settlement Funds

One effective way to protect the assets from a dog bite lawsuit settlement is by placing them in a trust. Trusts offer flexibility and security while keeping the funds out of probate and shielding them from creditors.

• Revocable Trusts. These trusts allow you to retain control over the funds during your lifetime and specify how they should be distributed after your death. Although the assets remain part of your taxable estate, they are easier to manage and distribute.
• Irrevocable Trusts. By transferring the settlement funds to an irrevocable trust, you relinquish ownership of the assets. This makes them less accessible to creditors and can provide certain tax benefits.

Trusts also allow you to appoint a trustee who will manage the funds according to your wishes. This can be especially useful if you want to allocate portions of the settlement to specific purposes, such as covering ongoing medical care, supporting family members, or charitable giving.

Protecting Funds While Maintaining Benefits

For those receiving government benefits such as Medicaid or Supplemental Security Income (SSI), a sudden influx of assets can affect eligibility. Establishing a special needs trust ensures that the funds are used for supplemental purposes without disqualifying you from these programs. This type of trust is specifically designed to protect settlement funds for individuals with disabilities or significant medical needs while preserving their access to essential public assistance.

Incorporating Your Award Into A Broader Estate Plan

Winning a dog bite lawsuit is often an unexpected event, which means the financial award might not align with your original estate plan. Updating your documents, such as your will, trust, and power of attorney, is an important step to integrate these assets into your overall financial strategy.

Including the settlement in your estate plan provides clear instructions for its management and distribution, preventing confusion or disputes among your heirs. It also allows you to address any new goals, such as supporting family members or making charitable contributions.

Finding The Right Legal Help

Estate planning is more than just a way to distribute assets after death—it’s a powerful tool for protecting the funds you’ve worked hard to obtain, including lawsuit awards. By creating or updating an estate plan, you can shield your settlement from unnecessary risks, maximize its benefits, and secure your financial future.

If you’ve received a settlement from a dog bite lawsuit, seeking guidance from experienced attorneys is a valuable step. Our friends at Cohen & Cohen discuss how proactive planning can make a meaningful difference in preserving your financial well-being and achieving peace of mind. Get legal help when you are ready.