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August 18, 2018

Awarded a Settlement Vortex Sucks in News Organizations, Law Firms, Finance Textbooks, Settlement Planners

by Structured Settlement Watchdog

The awarded a structured settlement vortex is almost as viral as the "Plantiff" phenomenon. But the former is a fundamental conceptual flaw, while the latter is a careless funny typo. 

Settlement how it works
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What is astounding is the volume of people, that should be in the know, that are sucked into making the case for something that is not.

A Head Rattling Baker's Dozen of Awarded a Settlement "Boo Boos" 

  1. Atlanta Journal Constitution has it really twisted with a title that says Georgia rape victim speaks about $1B Verdict and then in the same article says "a  rape victim was awarded a $1 billion settlement verdict"  May 23, 2018. A settlement verdict?
  2. NBC News 26  " Florida Man Awarded a Settlement After Police Mistake Doughnut Glaze for Meth  October 15, 2017
  3. Forbes' Tony Nitti takes two steps forward and three steps back with "In general, if you sue somebody and either win the suit or negotiate a settlement, your award is fully taxable under Section 61"  May 3, 2016
  4. Chegg Study " You have been awarded a settlement of $12,000 per year for the next six years.. The fair rate is 9%. I offer to pay you $52000 for it now. Should you sell it?"   From A company that provides textbook solutions whose tag line is study smarter not harder. 
  5. Los Angeles personal injury law firm describing how the settlement process works in a personal injury case  " When you are awarded a settlement in a personal injury case..."  April 23, 2016 still posted on firm's website
  6. Settlement Planner "A Special Needs Trust may allow a disabled individual who has been awarded a settlement"  January 24, 2017
  7. Same Settlement Planner " For example, if you are awarded a settlement of $350,000, but place it in a structured settlement annuity..." January 26, 2017
  8. DRB Capital LLC factoring Company " When the claimant is found to have proved their case, they are typically awarded a settlement in cash terms" 
  9. DRB Capital LLC has itself really twisted up here "If you’ve won a structured settlement in a lawsuit against an insurance company, then there are a lot of things that the courts will allow you to do with that money... But in many cases, the money you’re getting from the judgment is more than the amount you need to pay those bills, which means you can use it for other things by getting structured settlement funding"  [ Jim, Jason kindly get with the program please. It's on the Pig Crack page]
  10. Elder law Firm New York "When an individual is awarded a settlement in a medical malpractice or personal injury suit, it is typically for more than just the medical expenses"  May 11, 2018
  11. Tracy CA personal injury law firm " If you have been awarded a settlement after a personal injury cases (sic), you may wonder if you are facing a large tax bill" . The firm published the June 2017 blog in answer to the question are Jury Awards and Settlements Taxable?  Question counselors:  Do juries award settlements or do they approve settlements?
  12. Seneca One factoring company in its  website "knowledge base" says " When a court decides that a death of a family member was due to a negligent or wrongful act of another individual, the beneficiaries can be awarded a structured settlement on the deceased’s behalf". 
  13. Robin Roberts of Brightpath Financial Corp., misstates as fact "Fact 2: Structured Settlements offer value with restrictions. You have won payments for damages and have been awarded a structured settlement".  No you haven't.   [ Note: The Baker's Dozen of Settlement Boo Boos were all retrieved and compiled August 18-19, 2018]

Due to the very low bar the structured settlement factoring industry sets itself, such lack of fluency on the fundamentals is unfortunately to be expected (but not tolerated). But, how can a law firm not articulate the difference between a settlement and an award? How can a settlement planner not articulate the difference between a settlement and an award?  

The Eley Law Firm of Denver Colorado does an outstanding job of explaining the difference between a settlement and a workers compensation award.  They say:

 "A settlement is an agreement reached among the parties to a workers' compensation claim. This includes you, your employer and the workers' compensation insurer (unless your employer is self-insured). This is a type of contract, and it may bar you from seeking further compensation for your injury.

An award, on the other hand, is granted to you by the workers' compensation court. This may include medical benefits or other types of workers' compensation awards based on the specifics of your injury. For example, a judge can order — or an insurance company can admit for — temporary and permanent disability benefits. This isn't a settlement. You don't have to sign away any rights to get these benefits. If you need help determining whether you received an award or a settlement, we can help. We can review your situation and help you understand your legal options. We can also advise you before you accept an award or settlement"

 

Why care? Why let misinformation foster financial illiteracy? You're better than that.

Posted at 09:24 PM in Albany New York Structured Settlements, Award v Settlement, Awarded a Structured Settlement Vortex, Denver Structured Settlements, Difference Between Award and Settlement, DRB Capital/Imperial Structured Settlements | Critical Commentary, Los Angeles CA Structured Settlements, Structured Settlement FAQ, Structured Settlement Watchdog®, Tampa Structured Settlements, Texas Structured Settlements, TX structured settlements, VA Structured Settlements, Virginia Structured Settlements, West Virginia Structured Settlements, White Plains Structured Settlements, WV Structured Settlements |

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Guide to Structured Settlements 2024

  • What is a Structured Settlement? What You Need to Know
    Structured settlements and what you need to know about them including a helpful introductory video featuring A.M. Best Client Recommended Structured Settlement Expert and Registered Settlement Planner John Darer of 4structures.com LLC
  • How Do Structured Settlements Work? How Structured Settlements Work
    How structured settlements work, including 4structures.com LLC's super helpful structured settlement flow chart/diagram showing how structured settlements fit in on the spectrum of settlement planning solutions.
  • Rated Ages and Structured Settlement Cost
    Rated Ages for Structured Settlement Annuities present advantages to all parties. Shift the mortality risk to a life insurance company whose business it it is to assess mortality risk to price its life insurance and annuities. Rated ages boost your structured settlement annuity benefit per premium dollar, or your yield on lifetime payments. Rated ages help to reduce the cost of funding a Medicare Set Aside arrangement where a Structured MSA, is being used { WCMSA LMSA or NFMSA].
  • Top Structured Settlement Annuity Companies 2024
    Which life insurance companies issue structured settlement annuities in 2024? A list of current structured annuity issuers, the location of their home offices and their financial ratings from A.M. Best, Moodys, Fitch, Standard & Poors and/or other Tier1 NAIC ratings, with links to their websites and other useful information. Last updated June 14, 2024
  • Treasury Funded Structured Settlements
    Treasury Funded Structured Settlements are a settlement option for the most conservative using the OTHER permissible qualified funding asset under IRC 130(d), United States Treasury Bonds in addition to, or instead of, structured settlement annuities. Treasury Funded Structured Settlements can also be used to fund installment sales, also known as structured sales and other non qualified structured settlements.
  • Compare Structured Settlement IRR to Other Settlement Alternatives
    Use the Taxable Equivalent Yield chart to help compare the Internal Rate of Return (IRR) of a structured settlement to other alternative or complementary investments. Need help with the chart? Call 4structures.com® LLC at 888-325-8640
  • Structured Settlement Payments | Types of Structured Settlements 2024
    Ways You Can Structure Your Settlement Payments in 2024. With a structured settlement you can have more than one type of payment in a single contract. Different types of structured settlement payments can be customized and combined to meet your needs on a stand-alone basis, or in conjunction with other financial products. Diversify your structured settlement, if you wish, by funding with more than one annuity issuer, with treasury funded structured settlements, index linked structured settlement payments and market based structured .
  • Structured Attorney Fees for Tax Deferral for Attorney Contingency Fees
    Structured attorney fees is a financial strategy that offers a unique way to defer taxes for lawyers and law firms. Lawyers CAN structure their legal fees even if the plaintiff doesn't structure their settlement. There are multiple ways to structure your attorney fees, such as capped or uncapped index linked structured settlement annuities where payments are adjusted based on upside changes in the S&P 500 or another index, Trial Lawyers may also use a special deferred pay/deferred compensation arrangement, if market based returns returns are desired with no cap. Plan NOW for year end! Put structured attorney fee expert John Darer® on your settlement planning team in 2024.
  • Structured Settlement Annuity Company Customer Service Phone Numbers
    Receiving structured settlement payments from your own structured settlement or inherited structured settlement? You'll like this huge time saver. Click the title for a link to a comprehensive list of customer service telephone numbers that includes both current AND former structured settlement annuity issuers and reinsurers. If you have simple bank or beneficiary changes, or if the insurance company that issued the structured annuity has merged, sold or spun off its block of structured annuity business (e.g. Aviva, Allstate, Transamerica, AEGON, GE Capital, Liberty, CNA, Confederation Life), oran annuity issuer has changed its name and you're trying to track them down. Here you go! The list is regularly updated. Last updated May 20, 2024.
  • Structured Settlement Quote Lock-Ins | What You Need To Know
    What does a Structured Settlement Lock-In Mean? How do plaintiffs, defendants and insurers benefit from a structured settlement quote lock in when finalizing a settlement? How does the defendant/insurer/court benefit from using a structured settlement lock-in? Where to be careful when using structured settlement lock ins.
  • What Are Structured Settlement Annuities?
    Structured settlement annuities are annuities that can provide one or more customized annuity payment streams in a single contract. Read about structured settlement annuities here.
  • History of Structured Settlements
    Tracing the roots of structured settlements history from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as a core personal injury settlement planning tool to the present day.
  • What Are Market Based Structured Settlements?
    Market based structured settlements are an alternative or supplementary structured settlement solution for the plaintiff, attorney or law firm that: 1. Can afford to take some market risk 2. Have discretionary settlement dollars. Claimants and attorneys alike may find that market-based structured settlements provide the opportunity to receive tax-free income, or tax-deferred income, while enjoying growth potential.
  • iStructure |Uncapped Fixed Index Structured Settlement Annuity
    iStructure is an innovative game changing fixed index structured settlement annuity for plaintiffs or attorneys. with an intermediate to long term horizon
  • Structured Settlements and Longevity Risk| What Are the Odds?
    Do your financial resources give you enough road, or will the road run out before you do? A structured settlement annuity helps mitigate the risk of outliving your savings, no matter how long you live. A structured settlement can include one or more customized payment streams and types.

Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
    Qualified Settlement Funds | What You Need to Know
  • Firmwide Qualified Settlement Funds Debunked
    Firmwide qualified settlement funds have been heavily promoted to trial lawyers, but have been debunked in a detailed analysis in a July 2022 legal opinion a tax partner at the law firm of Faegre Drinker Biddle & Reath, LLP. Trial lawyers and firms who have established Firmwide QSFs or coinsidering establishing a Firmwide QSF should read the analysis as part of their evaluation.

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Why Take a Structured Settlement?

  • A structured settlement offers guaranteed financial security to personal injury victims, wrongful death survivors and their families. A structured settlement involves a customized stream of payments, provides long-term stable tax-free income, for a period of years or a lifetime. Unlike other income annuities. a structured settlement annuity can have multiple payment streams to address multiple needs in a single contract.

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