When a mesothelioma lawsuit results in a settlement, it brings long-awaited justice and relief. But it also comes with the serious responsibility of managing that compensation with care.
At Shrader & Associates, L.L.P., we know that a settlement is more than a number, it’s a lifeline for patients and families facing a life-altering diagnosis. A mesothelioma diagnosis not only affects your health, but your financial future. Our goal is to help you make informed financial decisions with confidence that support long-term security and continued care.
In this guide, we’ll walk you through the essential steps of managing your mesothelioma settlement, an important part of understanding your legal rights after settling your asbestos claim. We will cover things like immediate financial considerations and medical costs to long-term planning strategies like trusts, structured settlements, and fraud protection. We’ll also explain how to work with financial advisors who understand the unique challenges faced by mesothelioma patients and their families. This information is for educational purposes only and does not constitute legal advice.
Why Financial Planning Is Crucial After a Settlement
Receiving a substantial payout can be overwhelming, especially when it comes during an emotionally and physically taxing time. Without a clear strategy, settlement funds may be vulnerable to:
- Overspending or impulse decisions
- Exploitation or financial fraud
- Poor investments or legal missteps
- Neglect of future care needs
For many families, this may be the largest sum of money they’ve ever received. That’s why long-term financial planning is critical to preserve and protect the compensation that was hard-earned through legal action.
Immediate Considerations Post-Settlement
Once your lawsuit concludes and you receive compensation, it’s natural to want to pay off bills or take care of loved ones. But before making large purchases or transfers, take a moment to pause and evaluate your immediate priorities:
Understand Tax Implications
In general, settlements for physical injury or illness are not taxable, including compensation for medical expenses, pain and suffering and lost wages. However:
- Punitive damages may be taxable
- Interest earned on the settlement or awarded as part of the claim may also be taxable
- State tax laws can vary
It’s important to consult a tax advisor who understands personal injury or mesothelioma settlements to help clarify your obligations.
Handle Medical Bills and Treatment Expenses
Mesothelioma often requires ongoing or specialized care. Use part of your settlement to:
- Cover existing medical debt
- Fund upcoming treatments (chemotherapy, immunotherapy, surgery)
- Pay for home healthcare or medical equipment
- Budget for travel expenses to see specialists
You’ll also want to confirm what’s covered by your insurance or Medicare, and what costs you’ll be responsible for going forward.
Prioritize Temporary vs. Long-Term Needs
Divide your financial planning into categories:
- Short-term: Things like rent, food, medical supplies and transportation.
- Mid-term: Maybe you want to think about paying off your mortgage or maybe you need to consider relocation for treatment as well as caregiver costs and household support.
- Long-term: Its important to get things under control such as writing a will, planning dependent care and potentially end-of-life expenses.
By setting financial priorities, you’ll help ensure that your money supports both your present and future.
Smart Strategies for Long-Term Financial Security
Mesothelioma settlements are designed to provide lifetime security—not just temporary relief. Here’s how to protect and extend the value of your compensation:
Establish a Trust
Setting up a trust can protect your funds from being misused and may help maintain eligibility for certain benefits:
- A Special Needs Trust allows beneficiaries to receive funds without disqualifying them from Medicaid, Social Security or disability programs.
- An Irrevocable Trust can protect assets from creditors and minimize estate taxes.
- A Revocable Living Trust allows more flexibility if you want to maintain control over the funds during your lifetime.
Each type has advantages depending on your health, your dependents, and your personal financial goals. An estate planning attorney can help determine what’s right for you.
Consider a Structured Settlement
Rather than receiving a lump sum, some clients opt for structured settlements, which distribute funds in scheduled payments over time. This strategy:
- Provides stable income over many years
- Can reduce the risk of rapid spending
- May offer tax advantages if structured properly
Structured settlements can be tailored to include larger initial payouts for urgent needs and smaller recurring payments for living expenses.
Budget with Long-Term Health in Mind
Mesothelioma often requires care over many years. A sustainable budget should include:
- Monthly living expenses (housing, groceries, transportation)
- Medical appointments and prescriptions
- Caregiver costs—whether family or professional
- Travel expenses for clinical trials or expert care
- Home modifications (ramps, stair lifts, air filtration)
Think about not only your personal needs, but those of your dependents or loved ones who may be affected.
Working With a Financial Advisor Who Understands Mesothelioma Cases
Not all financial advisors are created equal, especially when managing a legal settlement related to a serious illness.
A qualified advisor with experience in mesothelioma cases can offer insight into preserving settlement funds and help coordinate trust setup or structured payouts. They can also advise on public benefits eligibility. If needed they can help to design an investment strategy based on health and longevity.
At Shrader & Associates, L.L.P., we help clients connect with trusted advisors who understand both the legal and financial complexities of mesothelioma settlements. The right advisor can be a valuable partner as your situation evolves.
Protecting Your Payout From Legal and Financial Threats
Unfortunately, large settlements can make you a target for scams. Protect yourself and your family by:
Preventing Fraud and Exploitation
Common risks include:
- Scam investments or pushy salespeople
- Pressure from acquaintances to “loan” money
- Predatory lenders offering cash advances on settlements
Always consult your legal or financial team before signing anything or transferring funds. It’s okay to say no, or delay until you’ve reviewed your options.
Safeguarding Funds for Dependents
If you’re managing funds on behalf of a child or dependent you can work with an attorney to create a minor’s trust or guardianship account. They can assist you with structured disbursements to ensure funds are available throughout their life and document your intentions to avoid family disputes.
This is especially important if your settlement includes wrongful death compensation.
Shrader & Associates’ Commitment to Your Lifelong Financial Security
Our commitment to you doesn’t end when your case concludes. At Shrader & Associates, L.L.P., we’re here for:
- Ongoing legal guidance: including secondary claims, asbestos trust funds or veteran’s benefits
- Referral to vetted professionals: including tax advisors, estate planners and financial consultants
- Case reviews or check-ins if your needs change
Whether you need help interpreting your settlement agreement or setting up a long-term care plan, we encourage all clients to schedule a free consultation for peace of mind.
Final Thoughts: Getting Support For Your Financial Future
A mesothelioma lawsuit settlement offers more than financial relief—it offers a second chance to take control of your future. With thoughtful planning, support and trusted guidance, you can turn your compensation into a foundation for long-term stability.
Here’s a quick checklist to get started:
- Meet with a tax advisor to clarify obligations
- Review short- and long-term medical needs
- Set up a trust or structured payout, if appropriate
- Create a budget with health, care, and dependents in mind
- Consult a financial advisor who understands your situation
- Protect your payout from scams or mismanagement
Shrader & Associates, L.L.P. is here to help you every step of the way. Let us be your legal and financial advocate—for today and for the road ahead.