SERVICES

Settlement Planning

Settlement Planning includes structured settlements or periodic payment arrangements for claimants or injured persons but may extend to consultations regarding the preservation of needs-based benefits, management or protection for lump sum awards, and professional administration of Medicare Set-Aside accounts.  In addition to the options available to the claimant or injured person, an attorney also has planning options for their fee including a structured settlement or a deferred compensation program. 

Choosing a structured settlement for an injured person provides:

  • Potential for income tax-free payments depending on the type of settlement

  • Extending the life of their settlement proceeds 

  • Income to cover future medical expenses, needs, or wants

  • Payments from a financially secure life insurance company

  • Low risk of default

  • A means to liquidate a settlement over time

  • Protection against creditors, bankruptcy, and divorce  in some states

Structured settlements for cases that do not involve physical injury or those that involve attorney fees are not income tax-free but provide tax-deferred payments. 

 

Personal Injury: Children

Settlements for children need particular attention because there are limitations on how the settlement proceeds can be paid for a minor. Although the rules may vary state by state, the options are generally one of the following:

  • Restricted court depository

  • Guardianship accounts

  • Trusts

  • Pre-paid college 

  • Structured settlements

 

Personal Injury: Adults

Cases involving adults would typically use a structured settlement in lieu of a lump sum award or in addition to a lump sum award.  An individual may decide to create a guaranteed series of payments that are protected from a spend-thrift nature or as a replacement for future income.   

  • Structured settlements 

  • Lump Sum Award

  • Funding Medicare Set-Aside with structure 

  • CMS-approved method of funding an MSA

  • Professional Administration versus self-administration

 

Employment Settlements

Structured settlements are also available for non-physical injury settlements.  While structured settlements in these cases are not income tax-free, they are income tax-deferred.  The types of settlements that would be eligible include:  

  • Discrimination

  • Wrongful termination

  • Sexual harassment

  • Contract disputes

  • Mental anguish

 

Other Settlements

There are opportunities to use structured settlements for non-physical injury cases that are not categorized as employment settlements.  The types of settlements that would be eligible would include those involving: 

  • Wrongful imprisonment

  • Punitive damages

  • Construction defects

  • Errors & Omissions 

  • Installment Sales

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