WHAT HAPPENS NEXT
You’ve decided to structure your settlement. What’s next? The NFP Structured Settlements Team guides clients throughout the entire process. Although every settlement and circumstance is unique, our process typically proceeds in this manner:
Analyzing Economic Damages
NFP Structured Settlements often gets involved well before the amount of the settlement money clients will receive is finalized. During negotiations, we work with client’s attorneys to help calculate economic damages and the long-term cost of clients’ needs based on factors such as medical care and basic living expenses for clients and their family. We will also help determine whether a trust is appropriate, especially to protect any public benefits, such as Medicaid and/or Medicare.
Designing A Structured Settlement
NFP Structured Settlements works with clients and/or the lawyer, accountant or other advisors to understand the payments necessary for their current and future needs. We work together to design a structured settlement suitable to meet financial objectives.
Working to Secure the Best Rates
After the future cash flow needs are determined, NFP Structured Settlements provides clients with structured settlement quotes from highly rated insurance companies offering the most competitive rates. Together, we may select one or several companies to fund the future payments according to the schedule clients and NFP Structured Settlements design.
Checking the Legal Details
NFP Structured Settlements will work with the attorneys to draft and review all documentation for compliance with Internal Revenue Service requirements. After compliance and document accuracy are confirmed, the package is submitted to all parties prior to finalizing the structured settlement contract.
Buying the Annuities or Assets
In order for the structure to remain tax-free, the defendant(s), or their insurance carrier, must pay the structured settlement provider(s) directly to purchase the contract(s) that will fund the client’s future structured settlement payments
Submitting Final Documents
Once documents are finalized and fully-executed, NFP Structured Settlements submits the document package to the insurance company(ies) to finalize the structured settlement. A policy or contract is issued and all final documents, policies, and contracts are distributed to the various parties. These may include the defendant; the annuity provider(s) and insurance companies; attorneys, accountant, and/or tax advisor; and other appropriate parties.
Receiving The Payments
Once the contracts are signed and the process is completed, the insurance company(ies) will begin distribution of the payments on set date(s). Meanwhile, your structure also begins earning tax-free interest immediately. Payments may be either direct deposited into bank accounts or sent via U.S. mail.
Enjoying Ongoing Support
NFP Structured Settlements is here for clients long after the payments begin. We welcome any future questions and handle every call with prompt, personal service.
Learn more about structured settlements:
Trust Services
Learn about special needs trusts, master trusts, settlement protection trusts, and the services of NFP’s trust administration firm.
Refer A Case
Need a quote on a structured settlement?
Contact one of our consultants