How to Make a Structured Settlement
You can negotiate a structured settlement with the defense in a personal injury case or a dispute instead of accepting a lump sum payment. Negotiations between you and the defendant on your longterm needs for life after you have been wronged complete most of the work. Expert advice can help you ensure your cost estimates for the longterm are right on the dollar.
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Things You'll Need
- Bills and financial records on the injury or the dispute
- Calculator or spreadsheet software
- Pen, typewriter or word processor
Instructions
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Settlement Steps
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1
Determine your longterm needs. Plan ahead for the full length of time the injury, or disputed wrong, will affect your life. Consider all expenses for medical care, future living, family support, education, training and retirement. Decide how much you need over a period of time to receive a full remedy.
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2
If you prefer expert input on the complex dollar assessment, consult with a structured settlement planner on the longterm cost. Professional planners have the financial expertise to consult on the cost amounts for your decided needs. They calculate the actual dollar values for the long term, considering the cost of inflation and lost income earning opportunities. Payment schedules that meet your needs on time can be developed.
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3
Negotiate the needs with the defendant or an insurance company representative. Discuss each need you have decided. Talk about the reasons for the needs.
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4
Review the defendant's calculation for long term cost. Examine their cost calculation and compare to the calculation made by you or a structured settlement planner.
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5
Make an agreement with the defendant on the payment amount and the periodic payment plan. First, agree on your longterm needs. Then, agree on the cost amounts and length of payments. With the defendant, decide a starting date, a payment period and the payment length. Sign your names to the contract.
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6
Inform the court on your settlement.
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1
Tips & Warnings
Consult with your attorney. Thoroughly consider your life and needs before coming to conclusions. The decisions last for the longterm.
You can not change the payment amount, payment schedule or length after an agreement has been made on the structured settlement plan.
