The settlement consultant is a state-licensed professional who works with injured individuals and families, the parties in settlements and their attorneys, and serves the vital function of planning and structuring the settlement.
What is a settlement and how does it work?
In a settlement agreement, an employee gives up their rights to bring claims against their employer in an Employment Tribunal or other court. Usually, the employer will offer a sum of money in return. Settlement agreements are legally binding so long as it is signed by you and your employer.
Who is a settlement planner?
Settlement planning is a unique and expanding area of law that is designed to help individuals preserve benefits that have been received from a personal injury settlement, inheritance or judgment. The practice encompasses an array of legal services such as special needs planning, estate planning and financial planning.
What is a structured settlement policy?
A structured settlement is a regular stream of tax-free payments granted to the plaintiff in a civil lawsuit. Structured settlements are meant to provide long-term financial security to the injured party. If the amount of money is small enough, the wronged party may have the option to receive a lump sum settlement.
What is the purpose of a settlement plan?
A settlement plan is a detailed, comprehensive look at a client's financial situation with specific recommendations designed to help a client be in the best possible financial position after receiving settlement proceeds.
What does a settlement planner do?
Settlement planning attorneys work with the injured clients and their trusted loved ones to create and execute a settlement plan that will help the injured person meet the injured person's goals and needs.
Should I take a lump sum or structured settlement?
You should take a lump sum settlement for all small settlements and most medium-sized settlements (less than $150,000 or so). But if you are settling a larger case, there are two good reasons for doing a structured settlement. First, the structure guarantees that you won't spend the money too fast.
Do you have to pay taxes on structured settlement?
Under a structured settlement, all future payments are completely free from: Federal and state income taxes; Taxes on interest, dividends and capital gains; and. The Alternative Minimum Tax (AMT).
How do I get my money from a structured settlement?
Put simply, a structured settlement is not a loan or a bank account, and the only way to receive money from your settlement is to stick to your payment schedule or sell part or all of your payments to a reputable company for a lump sum of cash.
What is an example of a structured settlement?
Examples of cases that may result in structured settlements include personal injury, workers' compensation, medical malpractice and wrongful death.
Is a structured settlement the same as an annuity?
Structured settlements are awarded to plaintiffs in court cases. Annuities can be purchased by individuals. Annuity sales don't require court approval if you purchased or inherited the annuity. It's often faster to sell annuity payments than structured settlement payments.
Who owns a structured settlement agreement?
A settlement agreement establishing the structured settlement will typically expressly state that the assignment company has all rights of ownership of the annuity. The structured settlement payee only owns the right to receive payments. The payee does not own the structured settlement annuity.
What is a structured settlement payment?
What is a Structured Settlement? A structured settlement annuity (“structured settlement”) allows a claimant to receive all or a portion of a personal injury, wrongful death, or workers' compensation settlement in a series of income tax-free periodic payments.
Funding
A structured settlement consultant’s first job is to help you find a funding service such as Rightway Funding.
Negotiation
A structured settlement consultant can also help you with negotiating your terms.
Analyzing Economic Loss
The final benefit of hiring a structured settlement consultant is that they’ll help you analyze your economic loss.
Find Your Structured Settlement Consultant
Now that you know the benefits of hiring a structured settlement consultant, you can find one for your situation.
Why do you need a structured settlement?
One of the main reasons for structuring your settlement is to ensure that you always have the money you need — when you need it. That means that your structured settlement consultant has to fully understand your personal situation to be able to address current and future needs. When it comes to accounting for your unique circumstances, no one is more thorough and deeply involved than NSC. We con- duct a detailed analysis to determine what expenses and needs you may face now and in the future. Throughout the process, we work closely with you to make sure you understand your needs and your choices. This is your settlement, which will obviously impact your life and future. We do not take that responsibility lightly.
Who pays the settlement amount?
The defendant pays the total amount of the settlement directly to the annuity provider or providers to purchase the contract(s) that will fund your future payments.
What is NSC legal department?
NSC’s legal department reviews all documentation to ensure compliance with IRS requirements and to protect your tax-free payments. After all documents are double-checked for accuracy, we submit them to all parties prior to finalizing your contract.
How long does it take for a lump sum settlement to be fully depleted?
In fact, several studies have shown that up to 90% of single lump-sum cash settlements are fully depleted within five years, regardless of their amount.
Is a lump sum settlement tax free?
Furthermore, they do not involve administrative or management fees. Lump-sum cash settlements are also initially tax-free, but the interest earned on investing that money is usually fully taxable. Furthermore, cash settlements are often subject to management and administrative fees, as well as the Alternative Minimum Tax (AMT). It would be difficult for even the most sophisticated investor to match the after-tax return of a structured settlement.
What is AASC in settlement?
The American Association of Settlement Consultants (AASC) is an industry advocacy group committed to a vibrant, strong, and modern settlement planning industry.
What is AASC partner?
AASC‘s Partner Members are the life insurance companies, trust companies, and other settlement industry providers who provide products and services for injured claimants and their families. We appreciate our Partner Members‘ support in making AASC‘s mission a reality.
Funding
Negotiation
- A structured settlement consultant can also help you with negotiating your terms. They can help with fighting your case to win a structured settlement. They’ll help you prove that your injury or illness was wrongful. They’ll then negotiate your need to receive a structured settlement. It can be a challenge to negotiate or petition for a structured ...
Analyzing Economic Loss
- The final benefit of hiring a structured settlement consultant is that they’ll help you analyze your economic loss. You’ll likely have medical expenses and a potential loss or decrease of income in the future. As such, you want to make sure that your structured settlement can help you with such circumstances. You also want to make sure that you don’t spend all your settlement at once. Yo…
Find Your Structured Settlement Consultant
- Now that you know the benefits of hiring a structured settlement consultant, you can find one for your situation. Make sure you keep records of your illness or injury. You’ll have to provide as much information as possible to help your consultant fight your case. A structured settlement can help you pay for the suffering caused by your illness or injury. It can protect you for many years to co…