What shall I do with my settlement money?

Money rewarded after a personal injury settlement can change the total value of your assets and may require you to follow through with more financial planning. It is crucial that you create a plan for this new addition to your property. Consulting a Sacramento estate lawyer can help you decide what you want to do with the money as well as keep it safe for your family. Below is a general guide of what is important to keep in mind.

Changing Financial Documentation

The sum of a personal injury settlement can vary. A victim may collect a large sum if they experienced disabling injuries and that can drastically change an individual’s income and/or assets. In the event of such a change, a person may need to review and revise documents regarding their estate planning, wills, or other legal paperwork to secure the money. Remember to report as accurately as possible since over-reporting will result in the estate being taxed higher due to its reported higher value.

Your Estate and Federal and State Taxes

There is a set limit for federal estate tax redemption. Once that limit is reached, the recipient may need to change their plans to fit federal regulations. State estate taxes are different. Some states charge no property tax and state estate taxes are not fixed. Be sure to research your own state’s laws to avoid confusion.

Your Investment Plan

Hiring someone to help you invest your money can be very helpful after obtaining a settlement. They should be able to ensure your ability to pay expenses as well as keep your financial award safe from frivolous taxes and fees. An estate planning attorney will be incredibly useful in planning out your estate and helping you manage your legal affairs, including financial settlement awards. Contact an estate planner today to secure your assets.

Be Sure to Hire a Lawyer

Your personal injury may cause pain beyond the initial physical injury you have sustained. Estate planning can be an emotional and complicated process made all the more difficult if you are doing it by yourself. The best way to ensure that your final wishes are honored and your loved ones are cared for is to hire an estate planning attorney to factor in your personal injury settlement. Don’t allow your assets to go into probate, hire an estate planning attorney to protect your estate for your family.

Thanks to our friends and contributors from Yee Law Group for their insight into estate planning and minor children.