The call comes at 2 a.m. There’s been a collision on the Brooklyn-Queens Expressway. After the initial shock, the questions begin—not just about your loved one’s immediate health, but about what comes next. What if they can’t work for months, or ever again? Who will manage their finances if they are incapacitated? What happens to a family if the worst occurs?
Most people think of a car accident in terms of personal injury law. They are right—that is the first piece. But as an estate planning attorney, I see the second, often overlooked, part of the story. A serious accident tests a family’s entire financial and legal structure. The aftermath is not just about a settlement. It is about the stewardship of that settlement and the protection of your family’s future.
First, Stabilize. Then, Document.
The first priority is always medical care. Nothing is more important. Seek immediate medical attention, even if injuries seem minor. Some conditions only manifest days later, and a clear medical record from the beginning is critical for both recovery and any subsequent legal action.
Once medical needs are addressed, the focus must shift to documentation. The moments after an accident are chaotic, but a record is essential. If you are able, use your phone to photograph everything: the position of the vehicles, the damage to all cars involved, road conditions, traffic signs, and any visible injuries. Exchange information with the other driver—name, address, insurance details, and driver’s license number. Get the names and phone numbers of any witnesses. Their objective account can be invaluable.
New York requires you to file a report with the DMV for any accident involving injury, death, or more than $1,000 in property damage. This official report creates a formal record that insurance companies and attorneys will rely on.
The Two-Lawyer Problem: Injury and Legacy
A personal injury attorney handles the immediate claim. They work to establish fault and secure compensation for medical bills, lost wages, and pain and suffering. Their job is to get the best possible result for the incident itself. My work often begins where theirs ends.
What happens to the settlement money? A large, lump-sum payment can fundamentally change a family’s financial picture. It can also create new problems. For example, if the injured person receives government benefits like Medicaid or SSI, a cash settlement could disqualify them. In these cases, we often establish a Special Needs Trust to hold the funds. This allows the beneficiary to use the money for supplemental needs without jeopardizing their essential public assistance.
In the tragic event of a fatality, a wrongful death claim is brought by the personal representative of the decedent’s estate. The proceeds of that claim do not simply pass through a will. Under New York’s Estates, Powers and Trusts Law (EPTL) § 5-4.4, any damages recovered are distributed directly to the decedent’s surviving family members who suffered a financial loss. This distinction bypasses the standard probate process but requires careful legal guidance to allocate correctly.
A Life-Altering Event Demands a Plan Review
A serious injury is a clear signal that your existing estate plan must be revisited. The core of any good plan is built on contingencies for incapacity and death. A car accident brings those abstract possibilities into sharp focus.
Your Power of Attorney is the first document we review. Is the person you named still the right choice to manage your financial affairs? Can they step in tomorrow to pay your mortgage and manage your investments? Similarly, your Health Care Proxy dictates who makes medical decisions on your behalf if you cannot. The person you designated must be ready and willing to act—and they must understand your wishes.
If you have no plan, the state has one for you. A judge in Surrogate’s Court may have to appoint a guardian to manage your affairs. That process is public, expensive, and deeply stressful for a family already in crisis. A deliberate, well-drafted plan avoids this entirely, keeping control within your family and out of the courts.
An accident forces us to confront uncomfortable realities. It also provides a powerful opportunity to be intentional about the future. By thinking through these issues, you are not planning for a tragedy—you are building a framework of protection and stability for the people you care about most.
If you or a loved one is dealing with the long-term consequences of an accident, a prudent first step is to assess your existing incapacity documents. We can schedule a private review of your current power of attorney and health care proxy to ensure they are sufficient to protect you and your family.
