A structured settlement is an agreement made at the time of settlement in which a plaintiff agrees to receive any portion of their settlement proceeds over a period of time instead of in a one-time lump sum payment. This type of arrangement is often used in personal injury lawsuits because the IRS code allows for tax-free interest growth of the money from physical injury lawsuits.

The future payments are usually guaranteed by a highly-rated life insurance company and are guaranteed for a set number of years and/or the recipient's lifetime. This gives the plaintiff a guaranteed income stream and helps ensure financial stability.

A settlement planner specializes in:

- Expert Advice: We only work with injury victims and their families, giving us a unique perspective on the dynamics of dealing with settlement proceeds and not just necessarily wealth management.

- Maximizing Value: We can help ensure that a settlement is structured in a way that maximizes its value, considering income needs, medical costs needed, inflation, and other factors.

- Customized Plans: We can work with the recipient and family to create a customized plan that fits their unique circumstances and financial goals.

- Compliance with Regulations: We can ensure that the structured settlement complies with all legal, transactional and documentation regulations, including Court approval if that is warranted.

- Ease of Process: We can handle the logistics and administrative tasks associated with a settlement, making the process easier for you.

- Access to Marketplace: Only licensed and appointed structured settlement planners have access to the structured settlement marketplace. The life insurance companies and other issuing entities insist that a settlement planner be involved to ensure that the transaction complies with IRS and other legal regulations. Prindable Settlements has access to the entire structured settlement marketplace, all providers.

A good candidate for a structured settlement is someone who has:

- A physical injury lawsuit: Structured settlements are commonly used in physical injury cases because the settlement proceeds are tax-free and a structured settlement keeps the interest gained tax-free.

- A taxable settlement: Structured settlements can be used in taxable settlements (discrimination, emotional injuries, among others) as a tax mitigation tactic. Structured proceeds in a taxable case enter the investment vehicle pre-tax, grow pre-tax and the income from future payments can be realized over time to maximize tax efficiency in addition to providing guaranteed payments.

- Long-term financial needs: If the recipient has long-term financial needs, a structured settlement can provide a guaranteed source of income for a set period.

- Difficulty managing a lump sum: If the recipient has difficulty managing a large sum of money, a structured settlement can provide a predictable source of income.

- A desire to avoid poor investment decisions: If the recipient is not experienced in investing or has a history of making poor investment decisions, a structured settlement eliminates the need for investment decisions.

- A desire for stability: A structured settlement can provide peace of mind and reduce financial stress, making it a good option for individuals who value stability and security.

The earlier, the better! This allows the settlement planner to review the settlement agreement, provide guidance on the best options for structuring the settlement proceeds, and help you understand the tax implications and other considerations involved in settlement planning.

Working with us early in the settlement process can also help ensure that the most appropriate structured settlement options are selected and that the settlement proceeds are structured to meet your specific needs and goals.

Ideally, the best time to engage a settlement planner is when a reasonable offer of settlement has been tendered to the plaintiff, or perhaps when a mediation or pre-trial has been set. At that point, analyzing the best methods of receiving and distributing net settlement proceeds could help resolve the case. A structured settlement must be included in any eventual release and money transfer at the settlement level. A case can be theoretically settled with a handshake deal, but the proper documentation and money transfer must occur for a structured settlement to be perfected.

If a settlement has already been received and distributed, working with us to consider a structured settlement may still be possible, though all options may not be available. We can guide you through the options available in your specific circumstances.

Yes! We can absolutely still help you even if you already have a financial advisor. We focus specifically on settlement planning, whereas a financial advisor may have a broader focus that includes other areas of financial planning. Often, a financial planner may not be well versed in the unique nature and circumstances of a physical injury settlement, the money therefrom and the tax-free or tax deferred options that a structured settlement offers.

We can work hand-in-hand with your financial advisor to ensure that your settlement planning goals are incorporated into your overall financial plan. We can provide specialized expertise and guidance on the best-structured settlement options and help you understand the tax implications and other considerations involved in settlement planning.

Working with a financial advisor and a settlement planner can help ensure that your settlement planning goals are integrated into your overall financial plan and that you receive the most comprehensive and effective guidance for your specific needs and goals.

If a structured settlement annuity recipient dies, the remaining payments will typically pass to specifically designated beneficiaries. If no beneficiary was designated, the payments will become part of the recipient's estate and be distributed according to their will or state laws. This allows the designated beneficiaries to continue receiving the structured settlement payments even after the recipient has passed away. All payments from a structured settlement are guaranteed.

Lawsuit settlements involving minor claimants have several special considerations, including:

Court Approval: Settlements involving minors typically require court approval to ensure the settlement is in the child's best interest.

Responsible Distribution: Many parents do not want a newly 18-year old to receive a large lump sum at that age. Structured settlements can provide tax-free payments to the minor over a period of time, spread out to avoid premature and irresponsible dissipation.

Guaranteed Investment: Many courts insist on guaranteed investments for minors. Moreover, Courts often do not allow parents or guardians make risky investments on behalf of minors, to ensure that bad decisions don’t affect a minor’s settlement proceeds. It’s the minor’s money, after all, they just can’t legally hold it until age 18 and beyond.

Guardianship: A guardian may be appointed to petition the Court to decide on the placement of settlement proceeds into a structured settlement or guardianship account on behalf of the minor.

Special Needs Planning: If the minor has special needs, it may be necessary to set up a special needs trust or ABLE account to provide for their care while preserving their eligibility for government benefits.

We can provide expert guidance and help you make informed decisions to ensure your child's settlement funds are managed and utilized to meet their long-term financial needs and goals. Contact us for a free consultation.

Settlement planning focuses on maximizing the distribution of funds from a legal settlement, while regular financial planning is focused on creating a comprehensive financial plan for an individual or family.

Settlement planning typically includes immediate needs, debt reduction, tax planning, and long-term financial security. In contrast, regular financial planning covers a broader range of topics such as budgeting, investment planning, retirement planning, and estate planning. Settlement planning is usually a one-time process, whereas regular financial planning is ongoing. Settlement planning leads to financial planning.

A settlement planner has expertise in the financial aspects of a legal settlement, including:

- Tax Planning: To minimize tax implications and maximize tax-free and/or mitigate taxable recovery.

- Asset Protection: To preserve and protect the settlement funds for the future.

- Investment Planning: To optimize the investment of settlement funds to meet the individual's financial goals.

- Estate Planning: To ensure settlement funds are distributed according to the individual's wishes after death.

- Special Needs Planning: To provide for individuals with special needs, such as a trust.

Engaging Prindable Settlements can help ensure that settlement funds are appropriately managed and utilized to meet your long-term financial needs and goals.

The benefits of a structured settlement over a cash lump sum are:

- Guaranteed income: A structured settlement provides a guaranteed stream of income for a set period, reducing the risk of spending too quickly.

- Tax advantage: Structured settlement payments, including the interest gained, are tax-free.

- Financial stability: A structured settlement can help ensure long-term financial stability, allowing the recipient to budget and plan for the future.

- Avoidance of poor investment decisions: Receiving a lump sum may lead to poor investment decisions, while a structured settlement eliminates the need for investment decisions.

- Peace of mind: A structured settlement provides the peace of mind that comes with a guaranteed source of income for a set period of time, reducing financial stress.

Absolutely! No one puts all their eggs in one basket, so to speak. A structured settlement is a fantastic option for creating a guaranteed income stream for known needs. However, it is not a “liquid”, or readily available, asset that can be easily liquidated in the event of emergency or other hardship. This is why we strongly encourage a complete Settlement Planning review, to ensure that needs are met via a structured settlement as well as with other, perhaps more liquid investment vehicles.

It is very common for a Plaintiff to utilize both a structured settlement and take some cash as part of a settlement, for immediate and/or other investment needs.

Settlement planning decisions can affect government benefits. Some government benefits, such as Supplemental Security Income (SSI) and Medicaid, are based on financial need and may be affected if a settlement increases the recipient's assets or income. Other, merit-based government benefits such as Social Security Disability Income (SSDI) or regular Social Security, shouldn’t be affected by third-party settlement proceeds, but a thorough analysis should be done to ensure that is the case.

We can help ensure that the settlement proceeds are structured to meet your needs while preserving your eligibility for government benefits if that makes the most sense. This may involve using special needs trusts, structured settlement annuities, or other financial products designed to protect government benefits.

We can analyze your government benefits, the unique circumstances surrounding your case, and the specific rules and regulations that may apply to your situation to help you make informed decisions about the best course of action.

It is often too late to select a structured settlement after completing the settlement agreement and accepting settlement proceeds in-hand. The choice to employ a structured settlement must be taken before the agreement is signed off on and the money transacts.

If you have already received your settlement funds, contact us to discuss your other options.