The short answer is yes, , but it must be set up properly and serve a legitimate legal or financial purpose. Here’s how it works in common situations:

✅ 1. Trusts – Common and Often Recommended

Many personal injury settlements are paid directly into trusts to protect the funds, manage taxes, or preserve eligibility for public benefits.

Types of Trusts Used:

💡 Funds must be set up and titled correctly—consult an attorney to ensure compliance.

✅ 2. Corporations or LLCs – Rare but Possible

In some cases, settlements can be paid to a corporation or LLC, typically when:

• The business was directly injured (e.g., a commercial vehicle crash)
• The claim is assigned or sold (e.g., in litigation finance)
• The recipient uses a corporation as a management or asset protection vehicle

⚠️ Be careful: Doing this for tax avoidance or to hide assets can trigger IRS scrutiny or legal consequences.

🚫 What You Can’t Do (Safely):

• You generally can’t assign your personal injury settlement to a corporation after the fact just to avoid taxes or divorce liability
• You can’t hide funds in a business or trust to dodge creditors or courts—this could be considered fraudulent transfer

🧠 Why Use a Trust?

• Maintain Medicaid or SSI eligibility
• Avoid probate
• Get professional money management
• Protect from creditors, lawsuits, or divorce
• Provide for dependents over time

✅ Next Steps if You’re Considering This

1. Work with a personal injury attorney
2. Hire a trust and estate attorney to draft the right trust
3. If using a business, consult a CPA or tax advisor