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Estate Planning for Settlements or Favorable Verdicts
Spring 2020
Proper settlement planning can be an invaluable service to a client as a lawsuit approaches an end. Funds from a settlement or favorable verdict may greatly affect the status of your client’s assets and public benefits eligibility and have federal and state tax implications. Steps should be taken to maximize and safeguard the award to ensure your client’s financial future.
Settlement planning for clients who have been injured, or who have a family member who has been injured, often entails the use of a trust vehicle to hold the monetary award. Many trust options might be appropriate for a client, depending upon his or her individual circumstances. Below are summaries of three types of trusts commonly used in connection with settlements or verdicts for injured persons.
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