Sexual abuse survivors have new resources to set up tax-free qualified settlement accounts after a sexual abuse settlement. A sexual abuse settlement trust can allow survivors time to understand what they want to do with received funds.
As covered in Law360, Levin Simes attorney Sara Craig shared her thoughts on sexual abuse trusts, for holding the proceeds of a settlement for a survivor.
“They may not be ready to go back to school or go back to work, so they need a little extra time and space to figure out what their options are, and to make a plan to ensure that their recovery is a safe one, and an appropriate one, and one that is going to give them long-lasting benefit through the rest of their life,” Craig said.
A settlement trust can allow a low cost way to set up access to financial planning and investment advice. These types of professionals can normally be expensive, and thus cost prohibitive depending on the size of a settlement. These new trusts provide low cost access, enabling survivors to gain resources without sacrificing large portions of their settlement.
The settlement trusts can also be set up to provide privacy, and by their nature the reason for the settlement is known. If a survivor went to a financial advisor, the survivor may have to re-describe their trauma to explain the source of the funds for tax calculations, as different types of abuse settlements can be taxed differently. Setting up a special sex abuse trust can avoid these issues.
“What I value about things like The Settlement Account is the client is in charge,” she said, and for survivors, “having that control back in their hands, being back in the driver’s seat, is really important for them being able to continue to process and heal.”
Levin Simes handles cases of sexual abuse, sexual assault, sexual assault from an Uber or Lyft driver, and institutional sexual assault including assault from clergy. To speak with an attorney for a free and private legal consultation, contact us at 1-425-426-30000 or email@example.com.