Setoff reduces a verdict by trust payments the plaintiff received for the same injury. Some states allow setoff only for amounts actually received while others credit amounts available from trusts the plaintiff could have claimed against.
Approaches vary substantially.
Alternative Names:
Trust Setoff, Trust Credit
Why it Matters?
Whether setoff extends to unfiled trust claims is the consequential question, since a plaintiff who defers filing avoids setoff in jurisdictions crediting only actual recoveries. That interaction is why trust disclosure statutes frequently require filing before trial rather than merely disclosing intent. Where setoff is limited to received amounts, the trust and tort recoveries can substantially exceed full compensation.
Frequently Confused with
Related terms
Frequently asked questions
Does setoff apply to unfiled trust claims?
Why do disclosure statutes require pre-trial filing?
