If you’ve received a personal injury or medical malpractice settlement, you may receive your compensation in the form of a structured settlement. Structured settlements provide periodic payments to you or your beneficiaries throughout their lifetime. Structured settlements are designed to protect the beneficiary’s eligibility for social services, such as disability payments and medical care.
Structured settlements can also be routed to a special needs trust. This preserves the income for the beneficiary, but since they’re not the legal owner of the funds, it will not adversely affect their social services eligibility. A trustee is appointed to manage the funds, and distribute them according to the terms of the trust.
James Bart Leonardi, LLC has helped hundreds of individuals manage their structured settlements— for themselves or a loved one.
Planning for structured settlements
A structured settlement is a great financial vehicle to protect assets for disabled or minor beneficiaries, but requires significant planning. When you work with Bart Leonardi, an estate planning attorney, he will advise how much of your settlement should be structured, or whether a special needs trust is necessary, what the payment amount should be and at what specific intervals should the funds be distributed. For example, some people choose to receive a smaller lump sum to address immediate needs, then structure the balance of the settlement to preserve benefit eligibility.
You will need to consider the above factors, but other factors will impact a structured settlement including; inflation, cost of living increases, and whether the beneficiary will be able to access funds for emergency purposes. These decisions are not universal. They depend on the individual circumstances of your case.
We can help with your structured settlement
When you receive a settlement, we can guide you to formulate a structured settlement that works for you and your beneficiaries… for a lifetime! James Bart Leonardi, LLC offers comprehensive estate planning services, including the establishment of trusts and their administration. A structured settlement can be a windfall for the recipient, but it needs to be managed properly and strategically. Let us help you plan for your future. Call James Bart Leonardi, LLC today to schedule a free consultation.