Guest post by Michael Merhar of Merhar Law, PLLC
Whether Alex Rissmiller secured you the large verdict or settlement you deserved due to wrongful termination, sexual harassment, or other abusive employer practices, or you received the backpay that was owed to you, it is easy to overlook planning to ensure those hard-earned proceeds are protected both for yourself and your loved ones. While each person’s circumstances are unique, this article will outline estate planning considerations that everyone should review, especially when they suddenly come into a lot of money.
What Will Happen if Something Happens to You?
Thinking about and planning for disaster is probably not top-of-mind after finally concluding a long legal case, but now that you have won, what happens to those winnings if you are suddenly unable to care for yourself or pass away? If you have no estate planning documents in place, state law will dictate what happens. If you become incapacitated, this likely means a guardianship will be necessary to make sure those proceeds are used for your benefit.
This involves a court appointing and supervising a responsible person to care for you and manage your property, usually with many restrictions. Guardianships can be expensive (court costs and legal fees build up), and a court will always be involved in your business. Fortunately, the following documents will usually help you avoid this situation, are much less expensive, and are easily obtained from a qualified estate planning attorney:
- Durable Power of Attorney: authorizes someone else to manage your property and make financial decisions for you.
- Designation of Health Care Surrogate: authorizes someone else to access your health care information and make health care decisions for you.
If you pass away without any estate planning documents, state law has a plan here, too, but you might not like it. States’ laws generally give your property to your spouse, if any, or to your closest living relatives, without any consideration for your personal preferences.
These laws can vary significantly between states and are determined by the state where you reside when you pass away. If this sounds like something you want to avoid, or you just want a say in what happens, the following documents can help you do so:
- Last Will and Testament: specifies who you want to receive your property and manage your estate, but usually requires your estate to go through probate (another court process) before property is distributed.
- Trust Agreements: also specify who you want to receive and manage your property, but if properly funded (assets are transferred into the name of the trust during your lifetime), will avoid the probate process, provide more privacy, and allow for long-term distributions.
No matter your personal situation, taking the time to set up even basic estate planning documents builds a safety net to ensure your assets continue supporting you and pass to those you want to receive them.
Do You Care for Dependents?
If you are caring for and financially supporting young children, an adult disabled child, or an elderly family member, you have a number of extra factors to consider, including the following:
- Who will care for your dependents if something happens to you?
- Does your current plan allow for your assets to continue to be used to financially support your dependents?
- Can (or should) your dependents receive property from your estate if something happens to you?
- If your dependents receive public benefits, such as Medicaid, will those benefits be negatively affected if they receive an outright distribution from your estate?
If any of the above questions gave you pause, you need to examine your estate plan more closely and ensure that it appropriately incorporates some or all of the following:
- A declaration of preneed guardian to designate who you would like to take over responsibility for caring for minor children.
- Trusts to keep assets out of the hands of minor children or financially irresponsible beneficiaries until certain conditions are met, such as reaching a certain age or completing a rehabilitation program.
- Specialty trusts, such as supplemental needs trusts, to ensure an inheritance can be used to help a loved one without interfering with their public benefits.
Planning when children or disabled beneficiaries are involved is more complex and can be overwhelming without help. Consulting with an experienced estate planning attorney is an excellent way to make sure your loved ones are continually provided for if tragedy should strike.
Will You Trigger the Estate Tax?
Did you suffer employer conduct so egregious that you received millions as a result of your case? While that is certainly a step towards remedying a wrong, it may introduce another potential estate planning problem: estate tax.
An estate tax is a one-time tax assessed against a deceased person’s estate if the total value of the estate’s assets is over a certain amount. Few people trigger the federal estate tax (total value of more than $13.99 million in 2025), but many states—such as New York—have their own estate tax that gets triggered at a lower total value than the federal tax (for New York, $7.16 million in 2025).
While these are objectively high amounts, they get triggered more frequently in places like New York where a much higher cost of living means many people get paid more and have more assets, even if those assets do not stretch as far as they would in other states.
If you think your situation may subject your estate to an estate tax, you likely need more advanced tax planning to mitigate the potential damage, and you should consult with an estate planning attorney who specializes in tax planning for high-net-worth individuals.
Key Takeaways When Planning After Your Case Ends
Fighting unjust treatment at the hands of an employer can be a long, taxing process. But once you have won, you need to make sure that hard-fought recovery continues to benefit you and your loved ones by putting in place an estate plan that takes into account your unique situation.
While many people may need only a basic estate plan that includes a will, power of attorney, and designation of health care surrogate, parents, caregivers, and high-net-worth individuals all have special considerations that need to be addressed with an estate planning attorney.
For further information, see the following resources:
About the Author
Michael Merhar is the founder of Merhar Law, PLLC, a wills, trusts, and estates law firm in Gainesville, Florida. Michael helps clients throughout Florida protect their legacies, avoid needless headaches, and navigate probate and trust administration.
