Structured settlements are often created for injured individuals to be sure they will not outlive their money. But what happens when claimants are injured in their 60s, 70s or beyond? Do structured settlements still make sense? In many cases, yes.
When someone suffers a minor physical injury and a settlement is reached, the settlement funds offer financial peace of mind until the injured individual can resume normal activities. When a catastrophic injury occurs – requiring medical and personal care – the settlement takes on a more vital role. Settlements must last a lifetime so that the injured individual receives medical treatment and can lead as normal a life as physically and emotionally possible. Each catastrophic-injury case is different, but there are similarities that are the basis for determining the type of structured settlement to create.
Let’s face it, most Americans are woefully behind in saving for retirement. And it’s not just Millennials who have little money left over to add to their 401(k)s (with loan debt, high housing costs and low wages being the culprits). Baby Boomers and seniors, those who should already have a sizable nest egg, are coming up short.
When a child is injured, parents have much to think about. High on the list is the child’s financial needs during the initial recovery period and beyond for medical, rehabilitation and other experiences. If there is compensation for the injury, judges often require that the settlement be structured so the best interests of the minor
What happens when a young person, say in their early 20s, suddenly receives more money than they could ever imagine? Most likely, they'll spend it until there is nothing left. That's what happened to former NFL player Clinton Portis.
Details are important when it comes to structured settlements. So is timing. Counting down, here is the top 10 list of things to remember when creating a structure – for your client or for your legal fees.
Counting down, here is the top 10 list of things to remember when creating a structure.
Attorneys often ask me, "When is the best time to bring in a structured settlement broker to a case?" The short answer is early.
A new investment product is showing up at settlement conferences. Often referred as “refactored annuities” or “secondary market annuities,” these are made up of structured settlement payments that have been previously transferred by an injured party to a factoring company, and then either sold individually, or are pooled and sold as repackaged structures in the secondary market.
The business model for a litigation law firm is often fraught with uncertainty — periods of big wins and big payouts as well as slow times with little or no income. One tool to even out cash flow, better manage the ups and downs of a litigation practice and prepare for an attorney’s future financial needs is structured attorney fees.
