What is a personal injury trust?

A personal injury trust is an arrangement that is created in order to hold and manage damages awarded to an injured person. This arrangement is commonly used in Texas in cases involving personal injury awards and in certain cases of disability planning law. This trust is set up to protect the injured person’s assets in the case that they can no longer manage them due to their disability. The trust is set up to ensure that all assets and financial resources are managed properly for the benefit of the injured person. In order for a trust to be established, an injured person must complete paperwork that outlines the terms of the trust agreement and appoints trustees. Trustees can be family members, friends, or professionals, such as lawyers or financial advisors. Once the trust has been established, the trustees have the power and responsibility to manage the funds on behalf of the injured person. The trust also specifies how the money in the trust is to be spent and provides guidelines on how it is to be managed. Trusts are a great way to protect and manage an injured person’s finances as they are unable to manage their own finances due to their disability. Setting up a trust is relatively simple and provides peace of mind for both the injured person and those they care about.

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