If you sustain serious injuries in an accident that was not your fault and you manage to secure a settlement for the damages, you will need to update your estate planning documents. This includes your will and any revocable trusts you have already created.

Below, the probate law team at Woodlawn Law Offices in O’Fallon, MO, discusses a few ways that severe injuries or a sizable settlement could affect your dependents after you pass:

1. A Bigger Tax Burden

Leaving a bigger inheritance to your loved ones may feel good, but not if it means they have a bigger tax burden too. Your beneficiaries will need to file an estate tax return if the value of your estate exceeds $5,490,000. If your estate exceeds this amount because of a personal injury settlement, speak with an attorney about legitimate strategies for reducing your loved ones’ tax burden after you pass.

2. A Smaller Inheritance Than Anticipated

If you sustain debilitating injuries and require lifelong care, you may end up spending a lot more of your settlement than you anticipate. For this reason, review your estate documents periodically, so you can ensure the accounts you want to leave your loved ones are always fully funded.

3. A Contentious Dispute

If you sustained a traumatic brain injury in the accident and then you decide to make changes to your will afterward, some family members could dispute these changes by arguing that you were not of sound mind. A seasoned estate planning lawyer can help you make changes to your documents with the help of a power of attorney, so any modifications will not be contested after you pass.

If you need to review your estate plan after securing a settlement in a personal injury lawsuit, turn to Woodlawn Law Offices in O’Fallon, MO. You can learn more about the legal advice this general practice firm provides by visiting the website. Call (636) 240-6667 to schedule an initial consultation with an estate planning lawyer today.