How should we distribute my mother in law's $700K accident settlement?She's paralyzed, & has no insurance.
Posted on Mar 10, 2008 under Insurance Information |She was hit by a drunk driver. We are still waiting for state medical aid to approve her. We take care of finaces etc. She has a family run business which she has said to sell, but there are immediate debts of 100K, mostly the utils and credit cards she used to keep it going. She has no other medical insurance. Her primary trauma bills are $1.3 million, which state aid will cover if approved. She now lives with us and will for the rest of her life, we pay out of pocket for all her prescrips, office visits and PT, about $4500 a month. She has three mortagage loans, $800K, 200K, 200k, which will be paid off upon sale of the home based business. According to her lawyer her state aid will be turned down if the 700K settlement shows up in any of her accounts, and she may not even be able to "gift" the standard $10K to her 5 kids, which we could set aside for her. We cannot be reimbursed for expenses we have already paid and will be out of money soon. He says to put it all to her mortgage.
March 10th, 2008 at 3:15 am
She needs to declare herself bankrupt which will solve the problem of debt. There is no easy solution as everything will be regulated. Her lawyer needs to represent her stating that her long term care will require a minimum ongoing cost which will need to come out of any payout settlement.
Sell all her business assest at a loss to another family member. The lawyer should know what to do and how to advise you all. There are several options. We dont have all the facts to advise you here.
March 10th, 2008 at 3:15 am
If she was in Britain she wouldn't face a possible bill of $1.3 million. Its all free here for as long as it takes.
It sounds like you need a very good financial expert/accountant to sort it out to your benefit. Complicated but it can be done. Poor lady, she's the one suffering and I send my best wishes to her and respect to you all.
ps
Why on earth didnt she have any insurance? I would have thought that with those big mortgage loans that an insurance plan was obligatory?
March 10th, 2008 at 3:15 am
If the $700K can't show up in any of her accounts because that would disqualify her from state aid, then the best thing to do is to use the money to pay off debts.
The overdue utility bills anc credit cards are a good place to start. ($100K)
I would take the other $600K and pay off the two smaller mortgages, and then put 200K to the big one.
To get state aid, I'm guessing she has to prove to the state that she's broke. Having a $600K mortgage, $4500/month in medical bills, and a medical debt of $1.3M qualifies.
November 5th, 2009 at 3:43 pm
Carina 18
November 5th, 2009 at 3:44 pm
Love Gisele
November 5th, 2009 at 3:45 pm
Gangbanged Girls
December 9th, 2010 at 8:39 pm
I know this is really boring and you you want to skipping to the next comment, but I just wanted to throw you a big thanks - you cleared up some things for me!
December 10th, 2010 at 6:09 pm
I like your theme, did you buy it or is it original? I’m in search of something similar to this for use on my web site.
January 18th, 2012 at 10:03 pm
… [Trackback] …
[…] There you will find 75714 more Infos: kingkings.com/2008/03/10/how-should-we-distribute-my-mother-in-laws-700k-accident-settlementshes-paralyzed-has-no-insurance/ […] …