What Type of Settlement Plan is Right For Your Client Under the Age of 18?

It’s a sad fact that over 90 percent of personal injury victims no longer have any of their awarded settlement income in less than five years. If your plaintiff client is a minor, this can be especially concerning as you want to ensure that you develop the right investment options for them to ensure their settlement is intact when they mature.

In this brief article, a settlement planner will explain many of the benefits of developing a settlement management trust to work in tandem with structured settlement payments for your personal injury clients that are under the age of 18.

Structured Settlements

One way to protect a beneficiary’s assets is through a structured settlement. When properly arranged, a structured settlement provides the individual with a reliable stream of income over time. If you have a client that is a minor and has no urgent need to access their settlement income, they can receive payments incrementally (or in a lump sum) to aid them in the future when they will have a stronger financial need for the income (college tuition, buying a house, etc.). Structured settlements are also tax-free and do not include additional expenses once they are established.

Settlement Management Trust

Although a structured settlement is a great option for a client that has no urgent need for the settlement income, in many cases the minor has some current financial needs including medical care or day-to-day expenses that need to be accommodated. Developing a settlement management trust allows the beneficiary access to the income through a trustee. Although there are more fees involved in creating a trust rather than a structured settlement plan, there are many benefits. For example, a trust can actually work alongside a structured settlement plan as these periodic payments from a structured settlement plan can go directly into a trust. With a trust in place, clients have more flexibility to access finances when they have additional expenses and they can also enjoy many tax advantages the trust presents.

If you are interested in learning more about our asset management services, please contact Synergy Settlement Services today. We can evaluate your client’s best interests and develop a court-approved plan that will maximize your client’s settlement and provide them with the assets they need long-term.

For more information or to schedule a consultation, please submit our contact request form.

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.

TESTIMONIALS

"I just want to thank Synergy for their great work in getting a health insurance lien resolved. The health insurance company refused to reduce their lien a penny from a motorcycle accident involving my client who was not wearing a helmet, a fact that would have hurt our award in front of a jury. Synergy put tremendous pressure on this company, and after months of bombarding this insurance company with statutory requests and threats, they were able to get them to give in and reduce the lien significantly. The cost was minimal in relation to the hard work they put in, and the savings my client received. Client was very happy, and it allowed me to close out a case that I had resolved over 6 months before. Keep them in mind if you are dealing with a smug insurance adjuster who felt confident he would not have to reduce a lien, like I was dealing with. Thank you very much Synergy."

Jeffrey A. Adelman, Esq.
Adelman & Adelman, P.A.

I wanted to pass my highest recommendation to Synergy who we routinely get involved in cases when Medicare issues come up, especially when dealing with Medicare Set Asides. Synergy went beyond the call of duty in a recent case that was settled and dealt one-on-one with our clients and their family. They spent time on the phone with them to be sure they got all their questions answered and did a fantastic job dealing with Medicare.

J. Daniel Clark
Clark Martino, P.A.

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