When people get arrested they need lawyers. Call one immediately. He may or may not be guilty of a crime but the lonmger you leave him lawyerless in police custody the more bad things will likely happen to him. Reasearch lawyers tonight. Start calling local ones at sunrise.
You have likely really messed things up by being his lawyer. Talking to the insurer almost always guarantees a far lower settlement than he should get (on average 70% lower). And where Medicare reimbursement is at issue, a lawyer also may help by negotiating the amount.
STOP talking to the insurer and stop sending them records and see a lawyer before the case is damaged further.
The best way for things to go badly is to not hire a lawyer. If you were injured and there is disputred liability your chances of recovery are about zero without counsel. (If you were not injured, you let your insurer and the other driver sort it out).
Verbal gifts of land have no meaning. You have at least two intestate estates to probate, and the fact that you waited until an heir died means you probably have three estates to probate. You need to sit down with a probate lawyer to prepare the three petitions, and sort through who gets what. There's no way to sell anything until someone gets the court's permission, and the longer you wait the more complex and expensive it will get.
While the ultimate answer will depend on who is determined to be at fault, even if you are at fault, your daughter likely could sue you for damages under your policy (or if you're not at fault, the other driver). Unless the settlement is small, a probate Judge wil have to okay it and a guardian will be appointed to oversee any money. You claims could be affected by the traffic case, and also could be hurt every day you delay seeing counsel, so get a lawyer ASAP, and in the meantime do not...
The biggest mistake for you and your daughter in your life "is to handle your case alone." On average, unrepresented car accident victims see settlements, if they get one at all, about 80% less than victims with attorneys. Do NOT say a word to the insurer. Every word you say is recorded and they already have a lawyer. Getting a good lawyer - quickly - is important, so you can avoid the initial contact with the insurer that often damages or destroys a claim, and also so they can begin...
Where to start? Start by hanging up on the insurer. Every conversation you have with them will be recorded and used to lower any payout in your case. You should expect to get at least 80% less without a lawyer than with one in a typical injury case. Hopefully you have not too much harm with the calls to date. Retain counsel soon, as in immediately.
It was a bad idea to hire a lawyer that solicited you. Good lawyers do NOT do that (they may advertise and promote themselves, but they don't call victims unsolicited). You should have studied about lawyers and selected an experienced one yourself.
Having said that, this is likely way too soon for a case to settle. Before any serious settlement negotiations, you have to complete all treatment and then your lawyer has to compile all your medical records.
There is probably nothing worse you could do to your family than to use online garbage like LegalZoom and the other messes you'll find online. The few dollars you may save now (and the cost of a will with a lawyer is so low that the savings will be tiny) will typically cause expensive problems later.
Small mistakes in drafting can cause immense problems. Heirs can lose their inheritance. Your executor may face added costs in probate due to granting the wrong powers or through less than...
When you have pre-existing injuries, the insurer will try and argue that your injuries did not get caused by the accident. Strong medical evidence can refute that, so if your doctors have documented this well, your attorney should be able to work with that. If you are not happy with your attorney, talk with him first, and then considert a second opinion with other counsel.