Structured Settlements Authority

How to Get Cash for a Structured Settlement

Evaluating a Structured Settlement Claim

During the compensation process following an accident, the likelihood that a structured settlement will be utilized to resolve the claim has increased significantly in recent years. Records have shown that on claims involving losses of $1 million or more, more than 29% were resolved with the use of a structured payment agreement as their mode of settling the claim.

Professionals who specialize on this area typically arrange structured settlements. Some structures are for minor claims the claimant, but more typically the claimant utilizing this type of settlement will require ongoing annuity payments to provide for long-term care and replacement of income.

After an agreement is made to settle the claim using structured payments, those in charge establishing the annuity payments would then determine the claimant’s realistic future needs. Future payments would have to provide for basic living and medical needs as well as planned lump-sum payments that may be required for big spending such as wheelchair replacement, a college education (for the claimant or a dependent), or a future surgery. Initial cash sums could also provide for the reimbursement of upfront legal and medical expenses.

The process of extrapolating an accident victim’s future need is a critical task. Due to the complexity, most defendants will employ an outside broker who has experience structuring payments in tort settlements. This normally will make the task easier and ensure that the future settlement payments are appropriate. The most appropriate way to settle a complex case with a fair settlement is to focus the discussion on the plaintiff’s specific needs.

When a case involves a serious injury to a victim, it is common practice is for the attorney of the victim to present a life care plan that lays out the future needs of the victim to the defense. The life care plan usually includes an estimate of future costs provided by a life care planner. In situations like this, an experienced broker can be a particularly valuable to the claimant.

After the future needs of the victim are quantified, the actual negotiations between the two parties can begin. The primary focus of the negotiation should be on how the proposed payment schedule will compensate the claimant for his or her loss

Legal Aspects of Getting Cash for a Structured Settlement