White House Financial & Settlement Consulting, LLC helps families live an easier and less stressful life through the achievement of their financial goals by providing comprehensive, fee-only, client focused financial advice and exceptional service.
Search This Blog
DON'T LET THIS HAPPEN TO YOUR CLIENT!!!
This week I was contacted by the father of a young man,
let’s call the young man Joe who is age 20.
Joe had suffered a traumatic brain injury as the result of an auto
accident and had received a settlement of $50,000. Joe’s father was concerned because Joe had
already blown through half his settlement in a month due to his discovery of
cocaine, which some new “friends” he was spending a lot of time with introduced
Joe’s father had heard of something called a Structured
Settlement, which he thought may help preserve the remainder of Joe’s
settlement from being squandered. Structured
Settlements are a financial vehicle which have been around since the 1980’s that
facilitate receiving a legal settlement with interest income tax free over time
and can sometimes have benefits over receiving the settlement all at once in a
lump sum, as in this case.
Joe’s father contacted me because my firm, White House
Settlement Consulting that I founded in 2001, has been helping injury victims
achieve their goals using Structured Settlements for almost 20 years. I had to unfortunately inform him that due to
the laws governing Structured Settlements, once the funds have been received by
the claimant it was too late to set one up after the fact and his only option
to gain some control over what was left of Joe’s settlement was to become Joe’s
conservator through the courts, which was unfortunately a potentially long and
I asked Joe’s father if Structured Settlements were
considered during the settlement process, and he said that he thought they
were, however, they were not correctly explained to Joe, who thought that they
were bad because only someone representing the defendant auto insurer, who he was
suing, tried to explain them to him. Joe’s
attorney also told him that because “interest rates are too low”, and his
settlement was on the “small side” he’d be better suited taking his entire
settlement as a lump sum! I ask you which is better: a higher interest rate
on ZERO or a lower interest rate on SOMETHING?
In addition, we have done hundreds of Structured Settlements for as
little as $5,000 to $10,000 as long as it makes sense for the client.
Unfortunately, after doing this for almost 20 years this is
not the first time that I have heard this sad story! This is why if you are an attorney representing
injured clients, an injured client, or know someone who has been injured PLEASE
obtain your OWN Structured Settlement consultant who represents YOU and the
CLIENT’S interests and can explain the advantage and disadvantages of a
Structured Settlements AT NO COST TO THE CLAIMANT OR THEIR ATTORNEY! We are trained to properly explain not only Structured
Settlements but all financial instruments to clients and to design financial
plans that will help them achieve their goals.
Also, if you are the parent of an injury victim it gives you more
control over the distribution of the settlement than a lump sum.
Lastly, please make sure that all the financial options for
the settlement are explored PRIOR TO SETTLEMENT so that options like the Structured
Settlement are still available! If the
client still chooses a lump sum, at least you have done your due diligence and
presented them with all their options using a qualified representative that
represents their interests and not the insurance company’s.
If you or someone you know has been injured and
has questions on the financial options available to them for a potential or
actual settlement we would be honored to be of assistance. We can be reached at (734) 433-1670 or email@example.com. www.whitehousellc.com
I hope that you are doing well! We just FINALLY completed the settlement of a case for a minor (age 17) that we were initially engaged by our plaintiff attorney client in February 2021, to provide structured settlement annuity quotes! Although the claimant was very close to the age of majority the key to the case was not giving him all of the settlement proceeds, which was over $120,000, at age 18. Having been in this business for over 20 years I cannot tell you the number of sad cases we have witnessed where the young claimant receives their settlement proceeds at age 18 only to blow through all the funds before anyone can blink and make bad decisions with the proceeds! This case involved two liability insurance carriers Liberty Mutual and Member Select. We coordinated multiple rounds of document revisions and had to have a separate set of different documents for each insurance carrier. In addition, one of the carriers would not fund the annuity until we had a fully executed court ord
We recently were engaged by the Guardian Ad Litem (GAL) in the case of an 11 year old boy who was struck by a care while riding his bike. The father of the boy settled the case directly with the liability auto insurance carrier pre-suit and the GAL contacted us to ensure that the boy's settlement funds were handled appropriately. The case settled for a total of $65,000 and $59,000 was being allocated to the structured settlement annuity for the boy as follows: $5,000 paid immediately upon settlement $10,000 at age 18 $20,000 at age 21 $25,000 at age 25 $35,718 at age 30 this is total benefits of $95,718! The annuity was placed with a large life insurance company rated A+ by the A.M. Best rating agency and provided the family and GAL with the peace of mind that the young man would not receive the entire amount at age 18. In addition, due to the use of the structured settlement annuity, all of the interest gained during the payout period ($31,718 to be exact) is INCOME TAX FREE! T
Here is our research department's Weekly Market Performance analysis. If you have questions or need anything else please contact me at (734) 272-4322 or firstname.lastname@example.org U.S. and International Equities Markets Mixed The major markets ended mixed this week as the utilities and consumer discretionary sectors led while information technology lagged following Apple’s challenges in China. Developed international equities posted solid gains this week as European stocks have witnessed their largest gain in six months after the European Central Bank (ECB) signaled an end to its hawkish monetary policy. Next Wednesday, the Federal Reserve meets concerning monetary policy and interest rates. We believe the Federal Reserve should highlight underlying improvements within the inflation dynamic. In addition, we believe the Fed will not likely declare victory but will probably highlight the risks to growth and inflation are getting into balance. According to the AAII Sentiment