When naming someone as an administrator to your estate or accepting the responsibility on behalf of someone else, it's important to remember that estate administration may not be a simple case of doling out the family heirlooms. Estate administrators may end up dealing with legal issues that could span years.
In another state, hundreds of heirs are about to receive funds associated with a settlement. The settlement is related to claims that were filed after workers in that state began ill or died after working with asbestos. The claims were settled by Travelers Insurance after an appeals court ordered the insurance company to make payments. Travelers was the company that insured a large manufacturer of products that contained asbestos.
According to reports, the insurance company created a fund of $80 million; the claims are going to be paid from this fund. Records indicate each claim will be settled for between $2,100 and $23,000. The amount of each payment will be determined by how severe the original medical diagnosis was.
Because many of the claimants associated with these cases are deceased, the settlement payments may be going to numerous heirs. Settlement payments, like any other asset, will be paid to the estate of the deceased. From there, the funds may be distributed in keeping with any legal estate documents, such as wills or trusts.
In cases where an estate benefits from lawsuit proceeds, complexities can arise. When setting up an estate, someone may not even realize a future settlement is a possibility for the estate. Creating estate documents that are far-reaching is a good way to protect your legacy in such situations, as is dealing with a trusted professional who can advise heirs regarding future estate matters.
Source: Insurance Journal, "More than 1,300 Claims Filed in Ohio Asbestos Suit," June 29, 2015