SETTLEMENT STORIES
Examples of people who used structured settlements and why structured settlements worked well for them.
Auto Liability Settlement
Situation:
A 10-year-old girl suffered head trauma as result of an automobile accident
Settlement Goal:
To plan for child’s future medical needs
Plaintiff:
The child’s mother wanted to place settlement money into a tax-free structured settlement annuity, rather than in a court-monitored savings account to be distributed at age 18.
Settlement Plan:
This child’s family has already saved some money for college expenses and they expect to have sufficient funds to pay for her education. Therefore, they chose a plan that distributed payments to their daughter at ages 18, 21 and 25.
The payment at age 25 was set up so she received a sizeable payment after her college years. The immediate cash was used to pay for the minor’s attorney fees and reimburse her mother for medical bills that she covered.
Summary:
Settlement amount: $57,500
Cash payment: $29,641.25
Annuity Payments funded by: $27,858.75
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18 $5,000
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21 $15,000
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25 $28,736.55
Workers’ Compensation Death Settlement
Situation:
A 40-year-old man was killed in a construction accident 20 years ago. He left behind a wife.
Settlement Goal:
For the last 20 years, the surviving spouse received $482 per week in Workers’ Compensation benefits. Recently, the employer wanted to settle the claim.
Plaintiff:
We met with the surviving spouse, who was a bit apprehensive about establishing a structured settlement because she had grown accustomed to the financial security of the Workers’ Compensation benefit.
She showed interest in a $100,000 lump sum payment to complete some home remodeling projects. She understood that by accepting a large lump sum, the amount of funds available for an ongoing monthly lifetime benefit would be less.
Settlement Strategy:
We proposed a few structured settlements that included an immediate lump sum followed by various annuity payment ideas.
With the remaining funds, we were able to create a lifetime monthly annuity payment of $1,270, which met her monthly spending needs.
Summary:
Plaintiff received: $100,000 lump sum payment and $1,270 per month annuity payment for life.