Recently, the Seattle Times reported on a large settlement involving families in Monroe, WA affected by chemical exposure. These types of cases often result in funds being placed into settlement protection trusts (SPTs). An SPT holds assets in trust for a beneficiary, either for their lifetime or until they reach the age of majority. Placing funds in trust provides important safeguards – from protection against creditors and financial exploitation to preserving eligibility for public benefits.
SPTs are typically administered by a third-party professional trustee.
This helps ensure accurate record-keeping, tax compliance, court reporting, and prudent use of funds. While the trust documents themselves often contain standard provisions for distributions related to health, education, maintenance, and support, the true complexity lies in serving the unique needs of each family and building a strong trustee–beneficiary relationship.
Beneficiaries of these settlements are often not financially experienced.
They may be minors, young adults, or individuals living with impairments. A skilled trustee collaborates with guardians, legal representatives, and care teams to gather information, set expectations, and establish healthy boundaries around the use of funds. Trustees must balance immediate needs with long-term financial stability, exercising discretion carefully. Ultimately, success depends on education, collaboration, and consistent communication.
At WE Trust Company, we begin by engaging in multiple conversations with beneficiaries and their support networks. We also partner with a financial advisor to create an Investment Policy Statement (IPS) – a roadmap that guides investment decisions and adapts to changing needs. The IPS is not static; it evolves as circumstances shift.
Once the trust is established, we do not “set it and forget it.” Our team conducts regular reviews, communicates with beneficiaries and their advisors, completes all required reporting, and ensures the trust continues to serve its intended purpose.
Over the years, we have worked with a wide range of families – from young parents navigating a child’s settlement, to individuals living with disabilities who need careful budgeting and benefit preservation, to young adults preparing for the transition to financial independence. These experiences have given us perspective on the importance of flexibility and patience in meeting beneficiaries where they are.
Many SPTs also specify a future date when the beneficiary will inherit funds outright.
In those cases, we focus on early financial education, involving the beneficiary (and their guardian, if applicable) in account reviews and discussions. This prepares them to manage funds responsibly once the trust ends, helping ensure long-term stability.
Settlement protection trusts can provide more than just financial security – they can offer peace of mind to families during challenging times. By focusing on education, communication, and long-term stability, trustees help beneficiaries feel supported every step of the way.
At WE Trust Company, we are experienced in serving as trustee for cases like the Monroe settlement and others, providing families with the reassurance that their settlement funds will be managed with care and professionalism.