Approximately 95 percent of personal injury cases reach a settlement during the pretrial phase. There are many logical reasons why settlements are common before a trial commences. The primary reason is that the plaintiff is ensured payment with a settlement offer. Before a personal injury settlement is reached, the attorney should consider consulting with a settlement consultant. One benefit to working with the settlement professionals at Synergy Settlement Services is that they can design a structured settlement annuity that preserves the settlement amount for the future.
What is a Structured Settlement Annuity?
A structured settlement annuity provides many long-term benefits for settlement recipients. When properly implemented, a structured settlement is tax free under United States tax laws. Another advantage of a structured settlement is that it can be tailored to the client’s specific needs. This gives the recipient flexibility to receive payments during a specific time period that suits their financial needs (i.e., retirement savings or college tuition). This is usually a better option compared to a lump sum payment for clients that require long-term medical care. Unfortunately, the majority of recipients of lump sum settlements spend their entire settlement total within five years or less.
How are Payments Made With a Settlement Annuity?
The payments for a settlement annuity are usually performed through an insurance company. The annuity can begin within a year of when it was established or the owner of the annuity can elect to receive deferred payment. If the annuity payment is deferred, this gives the settlement consultant the opportunity to maximize the client’s annuity by properly investing the savings until the date that they receive payment. A deferred annuity can be the most effective strategy for an injured party who receives a settlement as the settlement amount can be reserved long term to ensure that the recipient will have funding later in life for medical expenses and other payments.
How a Settlement Consultant Helps Trial Attorneys
Settlement consultants assist personal injury attorneys through every stage of a case with the challenging issues related to a settlement. In the pre-settlement phase, the settlement consultant can “crunch the numbers”, determine an accurate settlement amount and negotiate this total. After a settlement is awarded, the settlement consultant can design a structured settlement plan that maximizes the value of the settlement. A well-devised settlement plan not only protects the financial security of the injured victim but can also benefit the trial attorney’s financial future with attorney fee deferrals for tax-saving purposes.
For more information or to schedule a consultation, please submit our contact request form or call (877) 242-0022.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.