42 Years - A Professional Law Corporation - Helping Asbestos Victims Since 1974

Posts by: Steven Kazan

Mesothelioma Medical Treatment Power of Attorney

Mesothelioma Medical Treatment Power of AttorneyA mesothelioma medical treatment power of attorney is important to have in place. This document is officially called the durable power of attorney for health care. You may have already set up a power of attorney to designate someone to make financial and legal decisions on your behalf. This is different.

Specifying who will carry out your end-of-life wishes for mesothelioma medical treatment and exactly what your wishes are comprise the two main components of an advanced care directive. Your estate planning attorney’s services should include preparation of these forms.

Who Will Make Mesothelioma Medical Treatment Power of Attorney Decisions for You?

The person you select as your power of attorney for mesothelioma medical treatment will step in to make decisions when you no longer can. This person is considered your agent. Most people name a spouse, partner, relative, or close friend as their agent. In California and other states, your agent cannot be:

  • your health care provider
  • an employee of your health care provider, unless the individual is your registered domestic partner or is related to you by blood, marriage or adoption — or you and the employee both work for your health care provider

How to Decide Who Should Be Your Power of Attorney for Mesothelioma Medical Treatment

When deciding who will be your agent for your power of attorney as your mesothelioma progresses, keep in mind that the most vital qualities needed are trustworthiness and dependability. You should also choose someone you think will be able to defend your mesothelioma treatment wishes if others argue against them — someone who would be persistent and calm under pressure.

It is also important to make sure that the person you name is willing and able to travel to your bedside if necessary.

Best Ways to Help Prepare Whoever You Choose As Your Power of Attorney

Your agent will have to start making mesothelioma health care decisions for you if and when you are no longer able to do so. This can be stressful for him or her. There are steps you can take now to lessen the emotional strain.

Collect the information needed for decision-making. Talk to your doctor, oncologist and surgeon now to start understanding your options for mesothelioma treatment at the end of life. Organizations such as your local hospice also may have useful information.

Discuss your end-of-life choices with your agent. As difficult as it is, have a conversation about your decisions with your designated agent and make sure he or she feels prepared to carry out your wishes.

Some questions to discuss:

  • Are there any medical treatments for mesothelioma you want or do not want?
  • When you are dying, do you want to be in a nursing home, hospital or at home?
  • What options for pain management and hospice care do you want pursued on your behalf?

Inform people of your preferences. Tell your doctor, family and close friends about your end-of-life wishes so they will understand and respect your agent’s actions on your behalf. Keep a copy of your signed completed advance health care directive in a safe logical place that is easily accessible.

Give a copy of your form to:

  • The person you appoint as your agent and any alternate designated agents
  • Your primary care physician
  • Your other health care providers
  • The health care institution that is providing your care
  • Family members and close friends

Asbestos and Farming and the Risk of Harm

asbestos and farmingAsbestos and farming is not what comes to most people’s minds. Especially today when local small-scale farms are seen as the most pure and natural way to grow food. Keep in mind that asbestos is natural, too. It’s a natural mineral that lies deep in the earth. And that’s where it should stay. But unfortunately a lot of machinery, equipment and construction materials on farms may contain asbestos. And exposure to asbestos can kill.

How Asbestos and Farming Becomes Dangerous

Asbestos becomes dangerous when it is airborne. If asbestos in farming equipment or an old building gets disturbed, asbestos fibers may be released. Old and brittle asbestos that crumbles into dust produces airborne microscopic fibers. You can’t see them and may breathe them in when you inhale. Trapped in your lungs, asbestos particles can trigger fatal lung diseases.

How to Recognize Asbestos

Typically, asbestos is hardened and fibrous. It’s usually light grey or off-white in color.

If you’re working with old insulation boards, roof sheeting or older vehicles, and see flaking or powdering where unpainted surfaces are worn, cracked or damaged, it might be asbestos.

But visual inspection is usually not sufficient to determine if a suspect material contains asbestos. Although the Environmental Protection Agency (EPA) provides detailed guidance about how to safely collect samples that may contain asbestos, the American Lung Association recommends that you hire a certified asbestos professional to take any samples. Hiring a professional can minimize asbestos exposure for you and your family.

Where Asbestos May Lurk on Farms

You may find asbestos on your farm:

  • as an insulating material around pipes or boilers, or in panels between wallboards
  • as a friction pad in brake linings in old farm vehicles
  • in corrugated sheeting material in a roof
  • in products made from asbestos cement

How To Prevent Asbestos Exposure on Your Farm

Be careful when moving, sawing, drilling or breaking any structures which contain asbestos.

You can reduce the risk of releasing hazardous asbestos dust on your farm by:

  • using hand tools instead of power tools
  • making sure anyone working with questionable materials wears a face mask and disposable overalls
  • avoiding the use of a bristle broom when cleaning up – it could spread asbestos fibers

If asbestos on your farm needs to be removed, transported or disposed of, call in the pros. Remember, no amount of asbestos exposure is safe. It’s not worth risking your life to try to do it yourself.

The First Asbestos Court Case

asbestos court caseThe first asbestos court case, most people assume was one of the precedent-setting Johns-Manville cases in the late 1960s here in the U.S. They’re partly right. By the early 1970s, Kazan Law became involved with these asbestos cases and helped establish the groundbreaking legal remedy of filing a civil suit against a company in addition to workers’ compensation claims.

Unfortunately, this sea change in asbestos litigation occurred about fifty years too late for Nellie Kershaw, the very first documented asbestos court case.

Nellie Kershaw, an Asbestos Spinner

Nellie Kershaw’s short tragic life began in 1891 in the industrial northwest of England in a town near Manchester in a town called Rochdale. It was located in a region known as a center for the asbestos industry. She left school in 1903 at age 12 to work in a cotton mill. At the age of 26, she started working for Turner Brothers Asbestos. Her job title was that of a rover, and it involved spinning asbestos fibers into yarn.

Turner Brothers Asbestos was once the largest asbestos producer in the world. It owned mines in Canada and southern Africa as well as factories in the north of England. It was there that the mineral was processed into a spun yarn. In the early twentieth century the company boasted that ‘new uses for asbestos are constantly being discovered, the industry may be regarded as having touched only the fringe of its immense possibilities’. Nellie Kershaw’s death in 1924 at age 33 would begin to change that.

Asbestos Harm Denied By Employers

By the time she was 29 years old, Nellie began having the first symptoms asbestos-related disease. In 1922, she became too ill to work. By then she was married and had a little daughter born in 1920. A physician diagnosed that she was suffering from “asbestos poisoning.” Because her illness was related to her work, England’s National Health Insurance said she was ineligible for sickness benefits and told her she to seek financial support from Workers Compensation. But Turner Brothers feared setting a precedent that might lead other asbestos-sickened workers to ask them for money. They refused to pay any benefits to Nellie even as her situation became more desperate. Asbestos-related illness was not a recognized occupational disease then, and Turner Brothers instructed their insurance company to “repudiate the claim” as it would be “exceedingly dangerous” to accept “any liability whatever in such a case.”

Turner’s management wrote to Nellie’s doctor attacking his diagnosis. They wrote, “We repudiate the term “Asbestos Poisoning”. Asbestos is not poisonous and no definition or knowledge of such a disease exists. Such a description is not to be found amongst the list of industrial diseases in the schedule published with the Workmen’s Compensation Act.” But he did not back down.

Nellie herself pleaded in vain with her former bosses for compensation for her asbestos-related illness. In a letter that has been preserved she wrote, “What are you going to do about my case? I have been home 9 weeks now and have not received a penny – I think it’s time that there was something from you as the National Health refuses to pay me anything. I am needing nourishment and the money, I should have had 9 weeks wages now through no fault of my own.”

None ever came. She died in poverty on March 14, 1924 and was buried in an unmarked pauper’s grave.

Act of Parliament Gives Nellie a Posthumous Victory

Nellie’s premature death and her doctor’s insistence that it was due to “asbestos poisoning” forced the local coroner to initiate a formal inquest in court. Documents show that Turner Brothers instructed their attorney to attend the inquest and “evade any financial liability for Mrs. Kershaw’s death.”

Dr William Edmund Cooke, a pathologist and bacteriologist, called in during the autopsy to examine Nellie’s lungs, testified that he saw visible “particles of mineral matter … of various shapes, but the large majority have sharp angles.” When he compared these particles with samples of asbestos dust, Dr. Cooke concluded that the particles in Nellie’s lungs “originated from asbestos and were, beyond a reasonable doubt, the primary cause of the fibrosis of the lungs and therefore of death”.

Nellie’s death certificate, issued April 2, 1924 lists “Fibrosis of the lungs due to the inhalation of mineral particles” as the cause of her death.

What really brought the case to light was Dr. Cooke’s decision to write a full medical paper about it in 1927 and publish it in the British Medical Journal. In it, he gave Nellie’s disease the name by which it is still known: “pulmonary asbestosis.” It became the first asbestos case to be described in medical literature and the first published report of disease attributed to occupational asbestos exposure.

Dr. Cooke’s article prompted Parliament to call for a full investigation into the effects of asbestos. The results of the report led to Parliament passing the first Asbestos Industry Regulations in 1931.

However, Turner Brothers Asbestos never was made to accept liability for Nellie’s death, paid no compensation to her bereaved family and refused to contribute towards funeral expenses as it “would create a precedent and admit responsibility.”

This attitude continued, and spread to the US where it remains the practice of American asbestos defendants and their insurance carriers. But 40 years ago, specialized American trial lawyers like those at our firm began to stand up for asbestos company victims and lead the fight to get them justice. We have ’leveled the playing field’ and forced the asbestos industry to pay tens of billions of dollars to those they have hurt and killed. No wonder big business hates trial lawyers!

The Female Face of Asbestos Tragedy

England’s leading anti-asbestos advocate, Laurie Kazan-Allen, who heads International Ban Asbestos Secretariat and also happens to be my sister, recently wrote about Nellie Kershaw and other British female victims of asbestos exposure:

“Nowadays, Britain has the unwelcome distinction of having the world’s highest mortality rate from the asbestos cancer, mesothelioma. Historically, male mesothelioma deaths have dominated the statistics with, at times, six times as many male as female fatalities. Considering the lower death rate amongst British women, it is of interest to note that so many of the landmark cases through which the national asbestos reality has been revealed relate to the tragic experiences of female victims. In factories and schools, at home and at work, British women have paid with their lives for the asbestos industry’s profits.”

Kazan Law Earns #1 Ranking Wrongful Death Jury Verdict in California for 2014

Kazan LawKazan Law just made the number one ranking for the highest wrongful death jury verdict amount in California for 2014. We received this prestigious recognition by The Recorder, the nation’s leading legal publication, for its annual Top Verdicts for California issue. We are grateful for this honor and pleased that we are able to achieve top jury verdict awards for our mesothelioma clients and their families. This is especially important to us because of the tragic losses these families must endure.

$11,800,000 Jury Verdict Nets Firm #1 Ranking

An Alameda County, California jury returned an $11,800,00 million verdict in an asbestos wrongful death suit (Emily Bankhead, Tammy Bankhead, and Debbie Bankhead Meiers v. ArvinMeritor, Inc., et al., Alameda County Superior Court Case No. RG12632899) against Pneumo Abex LLC on January 15, 2014. Kazan Law Partner David McClain represented the Bankhead family. This follows a January 2011 verdict assessing punitive damages against Pneumo Abex LLC of $9 million along with compensatory damages for Gordon Bankhead’s pain and suffering and for his wife Emily’s suffering as she watched his disease progress and take his life. He died from mesothelioma in 2011 at age 68.

The Recorder – The Authoritative Voice of the Legal Profession

The Recorder is the leading source of key California legal news and information. For over a century, it has provided legal news that California companies and law firms rely on to stay up to date on all vital legal issues. In both its print and digital editions, it focuses on legal developments that are considered significant for litigation and judiciary matters.

The Recorder’s annual California Top Verdicts & Settlements issue is one of their most anticipated issues of the year. This important annual compilation list is based on Verdict Search, a comprehensive database of civil and criminal court cases, jury verdicts, legal judgments and settlements. The Recorder’s list highlights the top verdicts of California law firms from the year that just ended. It will be available on The Recorder’s site for the entire year.

Often rankings in professional publications can be illusory and are based on advertising purchased by a firm to achieve a “ranking” by the publication. Often, the bigger the advertising budget, the higher the ranking. But this is most definitely not the case with The Recorder’s Top Verdicts list. It’s a strict ranking by the numbers.

Kazan Law Ranked #2 in Top California Verdicts of 2013

This is not the first time our asbestos law firm has achieved a high rank in the annual Top California Verdicts list. Last year, we were recognized for having the second highest ranking for a product liability jury verdict in the annual Top Verdicts & Settlements in California list. This victory was the eighth highest among all verdicts awarded in California in 2013.

Kazan Law rated this honor for our June 5, 2013 jury verdict awarding plaintiffs Rose-Marie and Martin Grigg a total of $27,342,500 in damages for Mrs. Grigg’s asbestos-caused mesothelioma. Kazan Law Partner Joseph D. Satterley represented Mr. and Mrs.Grigg in court. We believe verdicts like these are why we’re one of the best asbestos law firms in the country.

Mesothelioma Lawsuits and Statutes of Limitations

mesothelioma lawsuitsMesothelioma lawsuits are a breed apart from most other types of lawsuits. Because mesothelioma can emerge 10 to 50 years after exposure to asbestos, a mesothelioma lawsuit can be filed decades after the fact. Even if you are no longer working where the asbestos exposure occurred or if the company itself no longer exists, you can still file suit. But you have to be mindful about the statute of limitations.

What is a Statute of Limitations?

A statute of limitations is a law that sets deadlines for filing a lawsuit. Most lawsuits need to be filed within a certain amount of time. Once the statute of limitations on a case runs out, your time is up and you no longer have a valid legal claim.

The period of time during which you can file a lawsuit varies depending on the type of legal claim. Most are about two to four years. Murder is considered so horrible that it has no statute of limitations. This is why you read about a suspect being indicted for murder many years later because new evidence was found. I have often thought that knowingly exposing someone to asbestos and causing mesothelioma should be considered murder because mesothelioma is fatal.

What Is the Statute of Limitations for Mesothelioma Lawsuits?

In many states statutes of limitations usually give people one to six years (depending on the state) from the diagnosis or discovery of mesothelioma to file an asbestos lawsuit. But it’s important to act fast, because in a few states, including California, Tennessee, and Louisiana, the statue of limitations is only one year from diagnosis. Usually, asbestos bankruptcy trusts allow a three-year statute of limitations from date of diagnosis. But if any of the companies you believe are responsible for your asbestos exposure has declared bankruptcy and claims are being handled by a bankruptcy trust, you may have a longer time to present your claim to that trust fund. But I advise against waiting.

Why Mesothelioma Lawsuits Should Be Filed Soon After Diagnosis

It is important to act on mesothelioma lawsuits before the statute of limitations time period ends. True, money cannot restore your health or undo the damage done to your family by your illness. But it can help look after your family when you are gone and ensure that justice is achieved on your behalf.

Time is of the essence. Mesothelioma is a cruel disease that severely shortens life expectancy. There is no way to predict how much time you have left to live or to feel well enough to work with your attorney and provide factual information to strengthen your case.

Also keep in mind that in California and some other states, claims for pain and suffering become invalid after death. If you succumb to mesothelioma before the trial, your family will not be awarded any damages for your pain and suffering. Because of the urgency involved, the law often allows for quick trial dates for asbestos cases. It is in your best interest to act as quickly as you can to start your lawsuit.

Why You Should File a Mesothelioma Lawsuit

If you’ve been exposed to asbestos and diagnosed with mesothelioma, you may wonder whether it is worthwhile to file a mesothelioma lawsuit. The answer is “yes.” People who learn they are suffering from mesothelioma stand a very good chance of receiving substantial amounts of money in damages from companies that manufactured, installed, sold or transported the asbestos or from an insurance company or asbestos victims’ trust fund that has taken on a company’s liability. This is true even if the original companies have long been sold, closed down, or gone into bankruptcy reorganization leading to the formation of asbestos victims’ trust funds.

Why Mesothelioma Patients Need an Advance Care Directive

mesothelioma patientMesothelioma patients did not choose to be exposed to asbestos and develop this disease. But every mesothelioma patient can and should choose the kinds of medical care they wish to receive as the disease progresses.

By deciding your options early, you can ensure your quality of life and avoid having your family guess your wishes or make critical medical care decisions for you under stress.

California law provides individuals a way to make their health care wishes known and considered when they become unable to make these decisions themselves. The Advanced Health Care Directive is the legal document that allows patients to make their end-of-life care choices ahead of time.

The Two Parts of the California Advance Care Directive

There are two basic kinds of health care documents everyone with mesothelioma should have. First, you need a document naming a trusted person to direct your health care if you are unable to do so yourself. This document is known as a durable power of attorney for health care. It does not give this person the right to make legal or financial decisions for you. That is a different kind of power of attorney.

Second, you need a document that specifies the types of medical treatment you would or would not like to receive in certain situations. This document is often known as a living will.

In California, these two documents are combined into a single form called an advance health care directive.

Writing an advance care directive may be difficult. You need to:

  • Know and understand your treatment options
  • Decide future treatment options you may want
  • Discuss your choices with your family

Although this document does not need to be created by an attorney, you should already be working with an attorney to prepare an estate plan, usually including a family trust, and that attorney should include preparation of these forms as part of the services provided.

Why Mesothelioma Patients Also Need a POLST

Mesothelioma patients also need to complete a one-page document called the POLST, short for Physicians Orders for Life-Sustaining Treatment. You can request one from your doctor’s office.

The decisions documented on the POLST form include whether to:

  • Attempt cardiopulmonary resuscitation,
  • Administer antibiotics and IV fluids,
  • Use a ventilator to help with breathing, and
  • Provide artificial nutrition by tube.

Does the POLST form replace the Advance Care Directive?

The POLST form supplements advance care directive and is not intended to replace it. It is a medical order and can be used by paramedics and other first responders. It ensures that the preferences expressed in the advance care directive are actually carried out. You also need an Advance Directive to appoint a legal health care decision-maker.

Kazan Law Partner Gordon Greenwood Speaks At Martin Luther King Event


Martin Luther King Day took on special significance for our firm this year. Kazan Law partner Gordon Greenwood was invited to his Mississippi hometown to be the keynote speaker at an event honoring Dr. King.

“As I look out over this audience today I see a lot of people who poured a lot of life into me and who are completely responsible for everything that I have ever accomplished in my life, and it is good to be invited to a lot of different places, it’s great to be invited home,” Gordon told the audience.

Annual Event Attracts Growing Crowds

Over 300 people gathered for the Meridian/Lauderdale County NAACP’s 30th annual Dr. Martin Luther King Jr. Community Prayer Breakfast on January 19. The annual event, which started with just a few members of the Boys and Girls club in Meridian, had to be moved from Meridian’s City Hall to a larger venue. Gordon Greenwood, who has been with our firm for 15 years, is a Meridian native and graduate of Meridian High School.

Also present was Meridian resident Angie Lewis who received the Presidential Medal of Freedom Award from President Obama on behalf of her father James Chaney. Chaney, along with Andrew Goodman and Michael Schwerner, were Mississippi Civil Rights workers who were murdered in 1964. Dr. King was assassinated in Memphis, Tennessee in 1968.

Gordon Greenwood Encourages Self-Motivation

Gordon Greenwood, in his keynote address “Looking Back to Move Forward”, called on the community to follow Dr. King’s example of being self-motivated in achieving their goals.

“Somehow, we got this idea that the answer lies outside of us. We protest to the school board. Then we go to the supervisor: he must not be doing his job. Then we complain about the mayor, he must not be doing his job. We even complain about the president, Barack Obama ain’t doing his job. We look everywhere but at the man in the mirror,” he told the crowd.

“The babies born today at Rush and Anderson today are born with the same cry as the babies who were born at Matty Hersee,” Greenwood, a 1980 graduate of Meridian High School, told the crowd referring to past and current local hospitals. “It is a cry for motivation. It is a cry for direction, and if we do not answer it, the streets will.”

The breakfast concluded after a reading of King’s “I Have a Dream” speech and a prayer by NAACP President Randle Jennings.

“We were truly blessed by the speech given to the community by Gordon Greenwood,” Jennings said. “More than anything, I hope we can build a bridge from this. We were challenged by Mr. Greenwood to build and strengthen our community.”

New Global Mesothelioma Case Epidemic Reported

mesothelioma caseA new study reports that the number of mesothelioma cases is on the rise globally.   Italian researchers who meticulously compiled and analyzed international mesothelioma facts say it has reached epidemic proportions in parts of the world and is unlikely to slow down.

The new mesothelioma case trend surprisingly turned up in several European countries. The report, published in the Indian Journal of Occupational and Environmental Medicine, found the highest number of mesothelioma cases in the UK, The Netherlands, Malta and Belgium as well as in Australia and New Zealand. They also found that in many countries data on mesothelioma is not collected and no mesothelioma facts or statistics were available.

The number of mesothelioma deaths reported in the UK increased from 153 in 1968 to 2,360 in 2010, with about 3.6 cases per 100,000 men and 0.5 per 100,000 women. The United States in comparison ranked in the middle range of the countries studied. In the period 2003-2008 over 3000 cases were diagnosed each year, with a high of 3284 in 2005. The incidence was 1.93 per 100,000 among men and 0.41 among women.

Mesothelioma is a lethal cancer caused by being exposed to asbestos. It may take decades for symptoms to emerge so a diagnosis can be made. Unfortunately, the average survival time of those with malignant forms of the disease is ten to fourteen months. The prognosis for a long life expectancy is not good even when symptoms appear early and treatment begins quickly.

“Asbestos has been banned in 55 countries. The inhabitants of such countries (about 1,110,000,000) correspond to 16% of the world population. This means that asbestos use continues in a large part of the world,” the researchers state.

For their report, researchers Claudio and Tommaso Bianchi of the Center for the Study of Environmental Cancer in Monfalcone, Italy studied mesothelioma case data from cancer registries around the world. They supplemented this data with information from mesothelioma researchers in other countries.

They conclude, “On the basis of global asbestos consumption in the last decades, one may predict that a further mesothelioma wave will involve large geographic areas. A lack of data does not allow an adequate assessment of the risk to be made. The epidemic of asbestos-related diseases in general and of mesothelioma in particular requires that the problem is faced in a more incisive way by health international institutions.”

San Francisco Deputy Public Defender Joins Kazan Law

Stephanie Wargo-WilsonKazan Law is proud to announce that Stephanie Wargo-Wilson has become our newest associate. As mesothelioma lawyers, we practice in a very specialized area of the law, representing the victims of asbestos exposure and their families. We fight for justice for people who do not have much in the way of money or power. That makes Stephanie a great fit for Kazan Law. She comes to us from the San Francisco Public Defender’s office where she has served as a Deputy Public Defender since 2002.

As San Francisco Deputy Public Defender, Stephanie helped defend thousands of people who could not otherwise afford an attorney. In asbestos litigation, we advocate for clients without resources and do not charge for our services until we see to it that they are compensated for the wrongs they have suffered. Stephanie’s dedication to fairness and equal justice under the law is in perfect alignment with our firm’s values.

Stephanie graduated from the UCLA School of Law in 2001 with outstanding grades. While at UCLA, she already showed her interest in justice as a board member and volunteer at the UCLA Free Clinic. During her law school years she clerked at the Los Angeles Federal Public Defender’s office. She was also an extern for the United States Court of Appeals for the Ninth Circuit.

In her role as a Deputy Public Defender in San Francisco she served as:

  • Felony trial attorney, representing indigents accused in felony cases, including three strikes cases
  • Research and writing attorney, writing motions, writs and appeals and answering questions for all the attorneys in the Public Defender Office
  • Swing attorney, stepping in on short notice for attorneys out of the office to arraign new cases, interview clients, write investigation requests, and conduct preliminary hearings
  • Misdemeanor Trial Attorney, handling a large caseload that involved working with case managers and community services to manage all trial preparation for case litigation.

Stephanie lives in Oakland, the city where our office is located, with her husband, son and dog they adopted from a local animal shelter.

Your Asbestos Settlement and Avoiding Financial Risk

This is a guest post by Patrick Collins of Schultz Collins Lawson Chambers, Inc., the firm we hired to advise us on how to handle Kazan Law’s pension funds, our charitable foundation’s funds, and that some of our partners hired to advise them on personal money management.

A good monthly income from your settlement funds often requires that you put principal at risk; keeping principal safe often requires that you live on very little monthly income.

Let’s say that you have just received an asbestos settlement check for $1,000,000. Depending on your family circumstances, here are some questions that you might have:

  • How much can I spend?
  • Where should I put the money?
  • How long will the money last?

The first question is the “budget” issue; the second question is the “how-much-risk-do-I need-to-take” issue; the third question depends on your budget decision and investment strategy.

A million dollars from an asbestos settlement is a lot of money. Can it fund a lifestyle that requires a $4,000 monthly budget? Remember, each month you will need to increase the monthly budget by the rate of inflation in order to maintain your lifestyle. Also, if you put your money in a safe, principal-guaranteed, interest-earning investment like a U.S. Treasury Note or an insured CD, you will pay income tax.

In order to get a rough idea of how a “safe” investment strategy for your asbestos settlement might perform, we assumed that $1,000,000 was invested in a portfolio of short-term (6 month) U.S. Treasury Notes starting January 1, 1994. At the beginning of each month, you receive a check for $4,000 plus an adjustment for the rate of inflation. Thus, on February 1, 1994, you go to the mailbox and open a check for $4,013. By November of 2014, the check’s face value has increased to $6,407 because it takes $6,407 to buy the same amount of goods and services today that $4,000 bought in 1994.

We graph the value of the $1,000,000 fund after accounting for taxes (20% rate), inflation, and monthly withdrawals:

asbestos settlement

If the $1 million asbestos settlement could be invested in a world with no taxes or inflation, it would grow to $1,851,880. The income tax bite reduces it to $1,637,496. Inflation reduces the purchasing power to $1,019,671. This is a particularly sobering insight—after putting you money in a safe investment for approximately twenty years, the future value after inflation and taxes just about equals what you started with. You kept the money safe but earned nothing. Furthermore, this is before you start to take out your monthly check!

The chart suggests that if you are willing to (1) live on a modest monthly budget; and (2) spend down your nest egg over a twenty-year period, then you need not take much, if any, investment risk. For comparison purposes, we ran the same numbers at $5,000 per month withdrawal—the guaranteed interest and principal portfolio is fully depleted ($0.00) by January of 2012. So you ran out of money—two years too soon!

If you want to increase your monthly consumption budget; or, if you want to give a larger bequest to family, church, or charity, then you will probably need to take some investment risk. There’s no right or wrong—it’s up to you.

Of course, this example covers the period from 1994 through June 2013. It is not a guide to what might happen over the next twenty years. It shows, however, how hard it is to produce safe and substantial monthly income and keep the nest egg intact.

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