Structured Settlement

Structured Settlements in Your Area - Get Professional Guidance

If you are set to receive a structured settlement or have any questions about this topic in relation to a personal injury or other civil case, Legacy Enhancement Trust can offer the guidance you need. We provide professional and personalized structured settlement services to disabled individuals and the families of persons with special needs.

Call (888) 988-5503 or contact us online today to learn more about structured settlements.

What Is a Structured Settlement?

When you win or settle a personal injury case, there are different ways you can receive your award. You have the choice to either receive the money in one lump-sum payment, or you can choose to receive the money in payments over time.

A structured settlement may be an option if you wish to receive the payments from your personal injury case award over a period of time. The series of payments is referred to as a structured settlement.

Key Details & Payment Options for Structured Settlements

There are many elements to consider when deciding how to receive your award, including the following:

Your tax liability
How you plan to spend the money
Whether you need help managing a large amount of money

If you choose to receive your award in a structured settlement, you’ll obtain periodic payments over a set number of years. For instance, if you win $600,000, you may receive payments of $60,000 every August for ten years.

With a structured settlement, you have the following options for receiving your payments:

Substantial initial payment. Let’s say you’ve been out of work for a while and your bills are starting to add up. Your structured settlement may include a hefty first payment to help address bills, a mortgage, or big-ticket items you need, such as a car. The lesser succeeding payments can then provide an alternative for lost income.
Supplementary payments for exceptional costs. You can designate your settlement to provide your annual income with added amounts designed to pay for exceptional costs, such as college tuition.
Higher payments over time. You may set up your settlement to increase your payments over the years. In this model, your payments will start somewhat low and get higher as time passes.
Lower payments over time. You may set up your settlement to decrease your payments over the years. In this model, your payments will start higher and reduce over time.
Postponed payments. You may choose to postpone your settlement payments until you reach retirement.

A structured settlement may offer various advantages:

Payments from a qualifying personal injury structured settlement may receive favorable federal tax treatment, depending on the claim and arrangement.
Receiving settlement funds directly can affect eligibility for government benefits such as SSI or Medicaid. How payments are owned, how the trust is funded, and how distributions are made can all influence eligibility under applicable benefit rules.
Structured settlements offer significant flexibility in terms of payment amounts and duration.
If the recipient of a structured settlement dies, a designated heir may receive remaining payments, depending on the contract terms.

How Long Can You Receive Structured Settlement Payments?

The amount and duration of structured settlement payments will vary on a case-by-case basis. At times, payments may increase or be supplemented by larger payouts.

A qualified assignee may be involved in arranging such payments and purchasing an annuity from an insurance company. Once the annuity is set, a lump sum may be set aside to fund a minor trust or cover attorney fees.

A structured settlement may be used as part or all of the funding for a pooled special needs trust for a disabled beneficiary. The payment and trust structure should be coordinated with applicable tax and benefit rules before proceeds are paid.
Trust administration fees apply to assets held in the trust.

Contact Legacy Enhancement Trust for Your Structured Settlement Needs

Learn more about protecting funds from a structured settlement and your options in establishing a special needs trust by involving our team.

From structured settlement management to third-party trust administration, we can tailor our services to fit your needs and goals. Supporting trust administration for you and your loved ones is among our primary goals.

Call (888) 988-5503 or reach out to us through our contact page to learn how we may assist you!

Questions to Resolve Before Settlement Funds Are Paid

When a personal injury settlement is intended for a person with a disability, the trust arrangement and payment structure should be addressed before funds are paid. Immediate expenses, long-term support needs, SSI or Medicaid eligibility, payment timing, and ongoing trust administration can all affect the planning process.

A first-party special needs trust generally holds the disabled person’s own assets, including settlement proceeds, and typically includes a Medicaid repayment requirement. A pooled special needs trust is managed by a nonprofit organization and keeps a separate sub-account for each beneficiary, even though funds are pooled for management purposes.

The settlement annuity payee should also be considered before the settlement is finalized. The professionals responsible for legal settlement terms can address those terms, while the trustee administers trust assets according to the trust terms.

A third-party special needs trust uses assets contributed by someone other than the beneficiary and generally does not require Medicaid repayment from remaining trust assets. Legal questions about settlement terms and related arrangements should be addressed by the appropriate professionals.

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