Estate planning is the process of divvying up your estate amongst your beneficiaries. It involves deciding who should receive your assets, when to transfer the assets, and how you want the assets transferred. Estate planning also minimizes federal and state taxes that the government charges on the earnings from your estate after your death.
Many estate plans are designed with flexibility, but a car accident is a big event that can alter the estate plan for you and your family. Today, the Davidson Law Group explains how a car accident can affect your estate plan and how we can help.
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There Will Be Medical Expenses
If you are injured in a car accident, it can have a significant impact on your current and future health. Your treatment may include physical therapy and/or medication, depending on the severity of any injuries. The good news is that your settlement funds will help you recover and pay for these demanding medical expenses.
How We Can Help
Minimize Your Taxes
If you receive a personal injury settlement, the size of the deal could increase your taxes. When creating an estate plan, one goal is to minimize your tax liability. At the Davidson Law Group, our attorneys will help make sure your taxes are minimized, and your settlement is used only for your recovery and medical expenses.
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Succession Planning and Documentation
Your estate planning documents should reflect the health and financial changes that occur after an injury. For example, if the accident has caused you to become disabled, choose a trusted person to make healthcare decisions for you. The individual you select will be the medical power of attorney.
Additionally, if you have leftover money from the settlement funds, you can set up a trust to manage and pay your medical expenses. A trust allows you to care for yourself and ensures protection for your beneficiaries after you’re gone. Whether you need to update your will, draft a power of attorney, or create a trust, our estate planning attorneys are ready to assist you.
Contact the Trusted Attorneys at Davidson Law Group
If a car accident causes a major change in your health or finances (either short-term or long-term), the Davidson Law Group is here for you. Our estate planning attorneys will revisit your plan with you and guide you on how to best move forward. We welcome you to schedule a free consultation on our website, or you can call us in Fort Worth, Allen, or Tyler.