Receiving a personal injury settlement can be a lifeline for someone who has suffered serious harm due to another’s negligence. The compensation can cover medical expenses, lost wages, and provide some sense of justice for the injured party. However, it is important to take steps to protect that settlement so that it can be used for its intended purpose. In this article, we will discuss some strategies for protecting your personal injury settlement in New York.
An important strategy for protecting your personal injury settlement is to establish a trust for settlement funds. A special needs trust or supplemental needs trust can help preserve important entitlement programs, such as Social Security Income (SSI) and Medicaid, and protect the settlement from creditors or other legal actions. The trust can be set up to provide regular payments to the injured party or to cover specific expenses. It is important to work with an experienced trust attorney to discuss the type of trust that is best for you and set up the trust correctly.
Another option for protecting your personal injury settlement is to receive a structured settlement. A structured settlement is a payment plan that spreads out the compensation over time, rather than receiving a lump sum payment. This can help protect the settlement from being spent too quickly, as it can be tempting to spend a large sum of money all at once.
An annuity is another option for protecting your personal injury settlement. An annuity is a financial product that pays out a fixed amount of money over time. The injured party can purchase an annuity with the compensation they receive, which can provide a regular stream of income for a set period of time. This can help protect the settlement from being spent too quickly or mismanaged.
Protecting your personal injury settlement is an important step in ensuring that the compensation is used for its intended purpose. If you have received a personal injury settlement in New York, it is important to take steps to protect it so that you can use the compensation to cover your expenses and move forward after your injury. Fratello Law’s lawyers can help you understand your options for protecting the settlement and can help you set up any necessary structures or trusts.