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Can a trust resolve the potential for major financial litigation arising from serious personal injury due to accidents involving a driver who was previously diagnosed with dementia?

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A Trust has no control over a person. But any concerned person can go to ncdot.gov and print out the Medical Review Program request for driver evaluation. Be sure you have the driver license number.
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This needs very specific legal advice from a lawyer. If you are asking if a trust can protect your assets now from prior "bad acts" from person with dementia? The courts will take a dim view if you are seen as trying to hide assets to prevent recovery by injured parties. You need a lawyer well versed in civil law working with you and adviser if Medicaid is involved. If I misunderstood the question my apologies.
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Thomas, if the defendant puts assets in a trust, there would be a charge of "fraudulent transfer" which makes things worse and saves nothing.
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What if the trust was established prior to the diagnosis? If an accident happened a period of time later, then would personal negligence be a factor? I am addressing this issue because some caregivers will not face the tough issue of stopping the person living with dementia from driving, and also feel that they are safe from a huge financial settlement if a serious personal injury accident occurred due to negligence on the part of the driver, who has had dementia diagnosed.
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Thomas, you really need to consult a lawyer on this. If a person with dementia continues to drive under these circumstances, a trust is not usually designed to protect private parties from their own criminal acts. Please Please talk with a lawyer, and get the driver reported to DMV as Pam suggested. You don't want to be reported to APS as an accessory or sued for contributory negligence. Prison is not a fun place for an elder for dementia, or a criminal psychiatric ward if they are prosecuted.
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