How A Fender Bender Might Affect Your Estate Planning

Many Northern Nevadans know the dangers that come along with this time of year. A 2019 statistic showed that 17% of all accidents happen during winter conditions, highlighting an increased chance for individuals to experience an accident due to extreme weather changes. Ultimately, no matter how long you’ve lived in the region, less sunlight, alongside rain, snow, and black ice creates challenges for anyone driving on the road. While no one ever thinks they will fall victim to an accident, knowing what to do after a fender bender is crucial to ensuring a headache-free experience.

What To Do After A Car Accident

Following these guidelines can help you document the incident calmly and efficiently.

1. First, check that you and all passengers in your vehicle are okay. If there seem to be any injuries, call 911 right away. You can report the accident and injuries during this time to ensure the proper first responders are sent. If for any reason, you do not have access to a phone, be sure to immediately ask any stopped witnesses or civilians to call for help.
2. If no one is injured and you are not at risk of further danger, move all vehicles involved to a safe location. Once you are removed from further danger, exchange driver's licenses, contacts, and insurance information with every party involved.
3. Afterward, it is a good idea to contact your local authorities if no injuries have been previously reported. No parties involved should leave until the officer shows up so that the accident can be properly evaluated. While waiting, feel free to take pictures of damages caused to all vehicles involved. The police report will help each insurance company determine who is at fault for the accident and any other injuries that may arise in the future.
4. Finally, contact your insurance company as soon as possible. If you are in a safe place, you can contact your insurance company immediately after the accident. They offer guidance during this stressful time and can ensure that you don’t miss any steps that would have significant consequences regarding liability.

While many people believe there is no reason to immediately report minor accidents, following these steps avoids unnecessary complications and significant penalties down the road.

How Car Accidents Can Impact Your Estate Planning

Healthcare decision-making.

If an accident occurs making you unable to speak or communicate decisions clearly, you will need to have someone talk to medical professionals on your behalf. This should be a previously planned and trusted individual who would be deemed your medical power of attorney. This person will arrange treatment with doctors until you regain consciousness, so it's crucial you've assigned this power to someone. Your medical power of attorney will expedite medical treatment in the case of an emergency. Furthermore, your medical power of attorney should know where to obtain a copy of this documentation to help expedite treatment.

Adequate insurance coverage.

Opting for minimum coverage can be detrimental to your savings and property in the event of a serious lawsuit. You and your car must be fully covered to prevent this from happening. Plus, you should speak to your insurance broker to find out if umbrella insurance makes sense for you. Umbrella insurance is a low-cost way to gain extra liability coverage and protect yourself from damages that may exceed the limits of your car insurance. Umbrella insurance ensures you have access to a bigger pool of money in the event of a car crash lawsuit against you, protecting your savings and future prosperity.

Be Careful of Fraudulent Transfers.

After a car accident with significant property damages and medical injuries, it may feel necessary to protect your assets from excessive lawsuit demands. You may attempt to do this by transferring funds to friends and family, but be careful because this is against the law in some states. These transfers used to protect assets won’t be ignored by the courts. If considered fraudulent, court judges have the full right and power to reverse transfers. This means that these assets can be obtained by the party in the event of a successful lawsuit against you even after being gifted to a friend or family member.

Revocable Trusts Do Not Protect Your Property from Lawsuits

Revocable trusts are used to protect your assets and trust from creditors and lawsuits after your death. Unfortunately, while some people believe that these trusts protect their assets during their life, this is a misconception and not their design. These trusts fail to completely protect your assets because you have complete control of all assets placed in a revocable trust. Your ability to control these trusts means a judge can order you to revoke the trust to pay creditors and lawsuit judgments.

Contact AD&R Now to Protect Your Estates

However, with the guidance of an experienced asset protection and estate planning attorney, you can use properly designed strategies to enhance protection for your assets and property. That means taking the time to sit down with an experienced attorney well before an accident occurs offers you the best chance to maximize asset protection for your estates.

SPEAK WITH AN ESTATE PLANNING ATTORNEY

Contact us today to see how AD&R can provide you with the finest legacy and wealth planning advice Northern Nevada has to offer. We help get you the proper insurance and design estate planning to help you overcome unexpected lawsuits after an accident. Give us a call today so that we can help prepare you for the perils winter might bring. 

 To date, twenty-four states have enacted or introduced model legislation referred to as the Uniform Voidable Transactions Act (Formerly Uniform Fraudulent Transfer Act). The full text is available on the website of the Uniform Law Commission at https://www.uniformlaws.org/committees/community-home?CommunityKey=64ee1ccc-a3ae-4a5e-a18f-a5ba8206bf49.