Episodios

  • Structured Settlement for a Minor Child

    Structured Settlement for a Minor Child
    Nov 16 2021
    Brad Cecil Episode 2:  Brad Cecil is an objective settlement advisor with Ringler.  He works with attorneys and their injured clients to provide structured settlements, which protect and preserve funds from an injury case settlement or jury verdict.  In this episode, he’ll discuss how a Ringler structured settlement can be extremely helpful for minors who were significantly injured. Brad explains that a structured settlement is a series of payments that can be arranged, rather than giving someone the responsibility of managing a lump sum payment from an injury settlement.  It can provide monthly income.  It can be set up to enable larger payments at certain ages, to help the individual and/or family plan for future needs.  The funds and interest are tax-free.  The payments are guaranteed, which is something you can’t get in the stock market. Structured settlements can easily be set up to pay for college costs.  If the settlement is large enough, a structured settlement can provide lifetime payments for ongoing care and milestones in life.  Medical equipment and specially-adapted vehicles will need to be replaced overtime.  A structure can anticipate those future needs and provide funds for them.  Brad works closely with the injured person (or his/her representative) and the attorney to craft a detailed plan that provides a safety net of financial security. Structured settlements were specifically authorized by the government to assist people who were significantly injured.  This is one of the reasons the funds maintain the tax-free status. Parents and guardians of injured minors often worry that if the money will be given to the child, once he/she turns 18 years of age.  Most of us didn’t make wise financial decisions at that age.  A structured settlement is designed to pay for ongoing needs, including college. Paying for College If a minor applies to college and wants to also apply for financial aid, having a large injury settlement sitting a bank account can make it very difficult for him/her to receive needs-based financial aid.  However, this problem can be avoided if a structure settlement is in place. What if We Don’t Use a Structured Settlement? Most parents don’t realize that the funds from an injury award to a minor are usually held in a blocked account by the court.  The funds don’t automatically go directly to the caregiver(s).  Limited access is provided, but an annual accounting of all disbursements and how the funds were spent is required.  The funds may only gain a small amount of interest.  At the age of 18, the minor will receive access to all of the remaining funds, by law.  A structured settlement provides much more flexibility, without the annual reporting.  The structured settlement provides peace of mind. Brad Cecil can work with people throughout the United States, even though he’s located in Louisville, Kentucky.  There is no fee to develop, implement or manage a structured settlement. Normally, the plaintiff’s attorney will contact Brad regarding a specific client.  Brad can work with the attorney, the injured minor and his/her parents (or guardians).  Sometimes they meet face to face or they may decide to video conference (via Zoom for example).  Brad takes time to speak directly the parents to determine the important needs, issues and concerns.  Some catastrophic injuries will require extensive financial planning.  Brad can also involve other Ringler professionals to assist, as needed. To Contact Brad Cecil at Ringler: Phone:  (502) 499-2086 Email:  BCecil@RinglerAssociates.com Website:  www.RinglerAssociates.com When Should You Contact Brad? It’s often better to begin that important conversation as early as possible.  This may even be before a mediation has taken place.  The more time there is, but better a plan can be individually crafted to address all of those needs, issues and concerns.  However, even if the mediation has already begun or has concluded, Brad use his experience to work quickly on behalf of the client. Do Judges Like Structured Settlements? In Brad’s professional experience, he feels judges welcome the involvement of a structured settlement because it helps to ensure the funds will be used properly and for the benefit of the injured minor.  As we discussed earlier, a structured settlement also eliminates the annual reporting to the court regarding where the funds are. If you’re an attorney who would like to speak with Brad, please don’t hesitate to contact him.  Often a brief conversation can result in long-term security for your client and his/her family.  Brad’s here to help you and your clients to make informed decisions. Thank you for taking the time to listen to this interview with Brad Cecil on the Ringler Settlement Advisors Podcast.
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    11 m
  • What Is a Structured Settlement?

    What Is a Structured Settlement?
    Nov 16 2021
    Brad Cecil Episode 1:  Ringler settlement advisor Brad Cecil answers the question, “What is a Structured Settlement?”  He’ll explain how they are used to provide safety, security and peace of mind for people who have received a significant injury settlement and need to protect those funds for the future.  Structured Settlements This tax-free option for victims of personal injuries and workers’ compensation-related injuries are a terrific tool for many individuals and their families.  The process normally begins when an attorney recognizes the need for and value provided by Ringler, on behalf of his/her client.  Brad meets with the injured person (or his/her representative) to learn about that person’s situation.  He uses the opportunity to fully explain what a structured settlement is and how it can help. Rather than receiving a large lump sum of cash from a legal settlement, the client may decide to take that money in scheduled payments, over time.  There are multiple advantages to this approach.  For some, handling a significant amount of money all at once could be intimidating.  Also, it’s a tempting target for friends and relatives who may need a “favor.”  At the same time, depending upon what is done with that lump sum payment, the value could go down in value (assuming it was invested in the stock market or some other volatile option). How Can the Structured Settlement Funds be Used? Primarily, the funds could be allocated for college expenses, paying fixed expenses such as mortgage payments, medical expenses, purchasing specially-adapted vehicles to accommodate wheelchairs and other needs, for example. Brad recommends the first area to consider is paying off all current debts.  The household’s income stream may be significantly different if the injured person is unable to return to work.  Structured settlement funds can provide a consistent source of income. The settlement can provide cash to keep in savings for emergencies.  The injured person and/or the person’s representative can determine how much to set aside for this purpose.  The structured settlement can be customized to satisfy the person’s needs and concerns. Depending upon the amount of the legal settlement, using a structured settlement can provide income for a person’s lifetime.  It’s a way to guarantee the security of knowing the funds will be there, on a tax-free basis, to help.  Brad often refers to this as “mailbox money.” Who Needs a Structured Settlement? The government approved this type of financial tool specifically for people who have been injured and are receiving a monetary settlement.  This is how the growth and interest remains tax-free, along with the funds themselves. Structured settlements are typically used for people hurt in car wrecks, motorcycle accidents, collisions with a tractor trailers and even workplace injuries.  Brad comments that lump sum workers’ compensation settlement awards are ideal for structured settlements.  That ability to provide an ongoing, secure source of money is often a welcomed relief for injury victims and their families.  Are there Risks to Simply Investing an Injury Settlement? Investing in the stock market by definition involves a level of risk.  If you are going to depend on your settlement funds, that’s not always the best option.  If you do want to invest part of your settlement funds, a structure can work as a more conservative component of your financial plan to offset the risks of market fluctuations.  Again, your structured settlement provides funds that are guaranteed and are tax-free.  It’s about having safety, security and peace of mind. Brad Describes His First Meeting with a Client Brad explains that he uses this opportunity to initially discuss three important issues.  The person’s wants, needs and key concerns.  Brad takes time to understand the situation so he can customize a structure, which addresses those issues. According to Brad, it’s usually better to engage him as early as possible in the settlement process.  This enables him to spot issues or gaps that can be considered. If Medicaid or Medicare benefits are involved, Brad can work to ensure the payments from the structured settlement don’t interfere with the person’s ability to maximize any means-tested benefits.  A special needs trust could be established to protect the benefits, as well as the funds placed in the structure.  It’s all about helping the injured person to protect and preserve all possible sources of funds and/or benefits. Don’t Run out of Money We’ve all heard of lottery winners who later end up filing for bankruptcy.  If you are receiving a significant injury settlement, you can’t afford to burn through those funds.  This is especially important if the funds will be needed for ongoing medical expenses and medical care.  Most people are unfamiliar with this type of financial tool.  Brad comments that by taking ...
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    16 m