What is a personal injury trust?

A personal injury trust is an organized legal arrangement that is used to protect personal injury compensation payments from creditors and from being counted as income by the federal government. Personal injury trusts are commonly set up when a person has received compensation related to a personal injury claim. The trust is put in place to keep the money from being used for anything other than the care and support of the injured person. In Washington, personal injury trusts are guided by Washington state’s Disability Planning Law. The law details the eligibility requirements for establishing a trust, what the trust can be used for, and other requirements related to creating and managing the trust. Personal injury trusts can be used to pay for medical bills and other necessary services such as housing, transportation, or employment-related expenses. These trusts can also be used to purchase items that make life easier for the injured person, such as adaptive technology or specialized mobility equipment. The trust funds can be used for other purposes, as long as they are approved by the trust’s drafter or trustee. For more information about how a personal injury trust works in Washington, it is important to consult an experienced disability attorney or estate planning professional. They can provide you with more information about the legal requirements and help you create a trust that meets your individual needs.

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