The Attorney's Indispensable Partner

To be in an offensive position during mediation, it is vitally important to utilize the services of a knowledgeable, experienced Settlement Specialist during all stages of the case. The support provided by a qualified Settlement Specialist will help to avoid the major pitfalls in settling the case, add value to the resolution of the case and eliminate potential liability and possible malpractice.

Many attorneys envision using a Settlement Specialist to determine the present value of structured settlement annuity offers provided by opposing counsel. While Settlement Partners certainly provides that service, we offer much, much more in all stages of the litigation process.

Pre-Settlement Services

As the Attorney's Indispensable Partner, we support legal counsel during the early stages of case development in building a strong case by providing the following services:

• Develop financial and capital needs analyses. From information provided in life care plans, economic plans and/or discussions with attorney/claimant, we prepare comprehensive financial analyses to determine an amount, form of funds receipt and timing of benefits that would be acceptable in a settlement offer or mediation.

• Calculate actual present value cost. To calculate the actual present value cost of these benefits, we utilize structured settlement annuity pricing, which is the most conservative tool to determine cost.

  Fact: Since the analyses documents for all parties (especially the court) how much money the claimant will need in his/her lifetime or projected period of disability, the attorney can substantiate his/her demand(s) and eliminate the "games" of negotiation frequently encountered during mediation. This promotes settlement, eliminates numerical distortion and matches benefits to needs.

• Coordinate the settlement with public assistance and/or private benefit programs. We review the case to identify the "Special Needs" claimant who may be currently receiving, or might be eligible in the future to receive, public benefits such as SSI, SSDI, Medicare, Medicaid and/or other public/private benefit and support assistance programs.

  Fact: Failure to make this determination and establish supplemental needs trusts as applicable may leave the claimant in a worse financial position when the entitlement benefits are withdrawn (or eligibility denied) and financial and medical needs exceed the value of the funds obtained in settlement.

• Identify support groups and other assistance programs. We aid the claimant(s) by providing information about support groups, programs, and product services that may be of benefit to them based on their specific injury.

  Fact: As an example, we may furnish information to a Spina Bifida claimant about certain scholarship programs available to them under the Veteran's Agent Orange Program, or provide a list of environmental control system providers and voice-activated computer suppliers to quadriplegic claimants who are unable to type, answer the phone, etc.

• Apply for medical age ratings based on impaired life expectancy. We review and submit all pertinent medical information to annuity life companies to be reviewed by medical underwriters for the purpose of obtaining a "rated age" (a term used to describe a life expectancy adjusted age) due to the claimant's medical condition and potentially shortened life expectancy.

  Fact: Life contingent benefit payments can be substantially increased and/or annuity premium cost reduced based on a sub-standard age rating. Counsel is assured s/he is getting the highest possible benefit for the premium dollar.

• Consider estate planning issues such as taxes and/or replacing caregiver(s). With permission from legal counsel, we meet (or telephone conference) with claimant and claimant's family (or conservator/guardian) to discuss current financial situation, change in lifestyle as a result of the claimant's injury and caregiver requirements. We determine the probable impact of settlement proceeds-from both a financial and tax perspective-and make a preliminary evaluation of the claimant's current and projected financial/tax status.

  Fact: Counsel may inadvertently or unknowingly create an estate tax problem that could easily have been avoided by designing a settlement that is unique to and enhances-rather than encumbers-the claimant's current and future financial and tax situation.

• Design creative settlement proposals to match the claimant's need. Before counsel considers any settlement offer and in preparation for settlement mediation/arbitration, we design several settlement scenarios based on the uniqueness of each claimant's situation.

  Fact: Counsel may unwittingly be susceptible to malpractice by accepting an offer designed by opposing counsel which has no relationship to the claimant's needs or situation.

• "Shop the market" for best annuity benefits. We obtain rates from all financially sound life companies to obtain the highest benefit for the premium dollar.

  Fact: Counsel is assured the claimant is receiving the maximum, safe annuity payout available.

As the Attorney's Indispensable Partner, we support legal counsel during the mediation/negotiation stages of the case by attending settlement conferences and assisting as follows:

• Evaluate offers from opposing counsel. Having established case "value," we analyze all settlement offers to determine if the claimant's needs can be met and calculate actual cost of any structured settlement annuity that may be offered.

  Fact: Prudent counsel will ensure all parties involved in the settlement know the actual cost (present day value) of an offer in determining the value of the settlement as, you undoubtedly know, this is the basis on which counsel calculates fees.

• Avoid constructive receipt. We work closely with the parties to ensure that settlement proceeds will be paid at the direction of counsel and checks issued in accordance with instructions from counsel to prevent "constructive receipt" under Treas. Reg. § 1.451-2(a).

  Fact: Counsel must ensure that the taxpayer's control of settlement funds is subject to substantial limitations or restrictions. If "constructive receipt" has occurred, a structured settlement can't be used which would cause the claimant to lose tax free status on future income/interest earned on settlement proceeds.

• Offer full structured settlement annuity and government bond program placement. We utilize high-quality companies with exceptional stability, proven claims-paying ability and financial strength. In addition, we "shop the market" to obtain the highest benefits for the lowest premium

  Fact: Counsel has an obligation to offer the claimant a structured settlement annuity when presenting settlement options. To eliminate potential malpractice liability in situations where a claimant refuses a structured settlement annuity, counsel must document as part of his/her due diligence files that an annuity was offered. If the claimant elects a structured settlement annuity, counsel should be acquainted with the annuity issuer company(ies) selected to provide future periodic payments to the claimant and be familiar with the company's financial ratings.

• Offer alternatives to structured annuities and bond programs. When, for various reasons including an appealed case, a structured settlement annuity is not appropriate for a specific claimant or the claimant elects to take an all-cash settlement, we are knowledgeable, experienced and licensed to provide other proven investment products.

  Fact: Alternative funding and appropriate investing through a knowledgeable and experienced financial consultant enables counsel to protect him/herself against future liability by limiting the claimant's access to and early dissipation of funds after receiving an all-cash payout.

• Provide instructions and guidance for completion of settlement documents. We assist in the preparation of settlement agreements, applications and other documents necessary to finalize the case and have the annuity contract or bond trust program issued (or proceeds properly invested). We ensure that language required by IRS and the various life companies is included. In addition, we coordinate the preparation of trusts, if applicable, and resulting notification of regulatory agencies.

  Fact: More than 85% of all settlement documents contain one or more substantive language errors and/or omissions. Counsel can limit its potential malpractice exposure with an agreement where (1) the language is consistent with the intended resolution of the settling parties, (2) does not create conflicts among the terms of the settlement and (3) does not leave tax issues open to IRS interpretation.

As the Attorney's Indispensable Partner, the conscientious Settlement Specialist is the last to withdraw from the settlement process. Continued involvement includes:

• Provide expert financial testimony. As it relates to the structured settlement industry, we are available to provide both written and oral testimony to the court.

  Fact: The key to court approval is ensuring the court understands why the settlement was designed as submitted.

• Attorney/claimant communication. We continue to work with legal counsel, claimant(s), life companies and others as necessary to achieve proper completion and submission of all required documentation to finalize the settlement process. We provide copies of pertinent documents to all involved parties and are available to answer questions and address concerns that may arise regarding annuity placement and taxability issues.

  Fact: Well-documented files are vital in limiting liability should an issue arise in the future.

• Coordinate receipt of future periodic payments. If, for some reason, the claimant experiences a delay in receiving payments or has other issues with the annuity company or bond program holder, we will assist the claimant in his/her efforts to resolve the issue.

  Fact: These value-added services enhance the legal work performed by counsel and eliminate time involved in "hand-holding" the claimant for non-legal related matters.

This is your case, and you should be the one controlling it. Not only should you take advantage of the services provided by Settlement Partners, you should also demand these services for your own protection. In working with us, we ask that you communicate with opposing counsel that you are working with a Settlement Specialist…and we'll take it from there. We're eager to be YOUR Indispensable Partner.