Structured for Success

If you’re involved in a lawsuit stemming from your spinal cord injury, a smart decision at settlement can protect your financial security for decades.

Five years ago in South Carolina, Mary Washington (not her real name) fell off a scaffold during work, injuring her spine so severely that she could no longer walk.

Mary sued and won a verdict of more than $2 million. While no amount of money can fully compensate someone after an accident like this, you might think that at least Mary would have enough to live on for a long time.

Think again.

Within a few years, all the money was gone. A “friend” of Mary’s convinced her to invest $1 million in a new bar in Myrtle Beach, South Carolina. The bar quickly went bankrupt and Mary lost her entire investment.

She bought two expensive cars, specially outfitting them. But she had no insurance, so when she wrecked both cars, it was a total loss.

Finally, she bought two big houses next door to each other. One was for her and the other was for her sister, who had promised to take care of Mary.

Unfortunately, Mary put the house’s title in her sister’s name. The sister then sold the house, and moved away. Unable to afford her own house payments, Mary has now had to move out of her house.

This is a sad story of a woman who had a spinal cord accident that changed her life forever, and who was also injured by her own lack of financial knowledge. Unfortunately, I have seen many similar examples of people who win large courtroom verdicts only to lose them through short-sighted investments or slick con artists. Sadly, there are no second chances if a lawsuit settlement is wasted.

That’s why I frequently urge my clients to consider a financial alternative known as a

structured settlement. Recognized by federal law since 1983, a structured settlement is an ideal way for people injured in accidents and their families to accept compensation in wrongful death and physical injury cases.

Under this kind of settlement, an individual agrees to have some or all of his or her compensation paid in the form of a stream of guaranteed payments. These payments are tailored to the specific needs of the individual and any dependents.

Under rules laid down by Congress, these periodic payments are funded by two of the most secure sources available—a life insurance company annuity or a U.S. Treasury obligation. These payments can be guaranteed for just a few years or for a lifetime. They can be in equal amounts or they can include occasional larger amounts to pay for future needs such as wheelchair replacement or an operation. They can also include cost-of-living increases.

Importantly, these payments will keep coming regardless of what happens with the interest rates, the stock market or other economic developments.

All of this is vital to those who have been in a serious accident. They may need a lifetime of care—but who knows how long that lifetime will be? Statistics show that a person with a spinal cord injury and a life expectancy of 60 years has a nearly 20 percent chance of living to age 70. A structured settlement can be established to provide guaranteed payments for life, regardless of whether the individual lives to age 60, age 70 or more.

In addition to the excellent security, there is another key advantage to the structured settlement: These payments are completely free from federal income taxes, which can mean a higher return than other, riskier investments.

The undeniable reality for most persons with a spinal cord injury (and their families) is that their focus should be on rehabilitation, not financial management of their lawsuit settlements. The structured settlement provides them regular income, guaranteed and tax-free.

That’s why it is an ideal option for people injured in accidents or their dependents in wrongful death cases. These families have already been through tragedy and they still face months or years of expensive therapies.

Over the years, structured settlements have won praise from numerous prominent leaders in the disability community, including the late Justin Dart. In fact, one of the driving forces behind the original 1983 federal law recognizing structured settlements was former U.S. Senator Bob Dole, whose tireless efforts on behalf of people with disabilities is well-known.

Very few people ever have that one chance in their lives to guarantee their own long-term financial security. A structured settlement can help accomplish that.

For more information about structured settlements, contact the National Structured Settlements Trade Association, 1800 K Street, Suite 718, Washington, DC 20006, www.StructuredSettlement.info. Or call them at 202-466-2714.

Raymond Boucher has spent more than 20 years representing people injured in accidents, including many with spinal cord injuries. In 2002, he was named one of the “100 Most Influential Attorneys in California” and in 1994, Trial Lawyers for Public Justice voted him “Trial Lawyer of the Year.”