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Should I Settle My Case With A Structured Annuity Settlement?

admin — Tue, 07 Sep 2010 15:58:10 +0000

A substantial personal injury settlement amount can range from six to seven figures. Settlements of this nature are intended not only to provide a dollar figure for the pain suffering endured, but also to alleviate future financial hardship caused by the incurred injury. When clients receive such a settlement, I always counsel them to consider structuring their settlement in a settlement annuity. A structured settlement annuity provides settlement money to clients over a period of time rather than in a single lump sum. There is great wisdom in structuring large settlements in this manner as studies have shown that lottery winners who receive millions of dollars deplete all of the assets they receive within a couple of years. Unfortunately, people who receive large amount of money from a personal injury settlement frequently deplete their money as well.
I have been an attorney for the past 34 years and, unfortunately, I have many sad stories to tell from my clients who did not take my advice on purchasing structured settlement and, instead, chose to immediately take the lump sum settlement. One such sad story involves a woman who received a 5 million dollar divorce settlement. She had lived well with her husband who was wealthy and after receiving the divorce settlement she decided to continue living the extravagant lifestyle, even though she was, after the settlement, cut off from the huge cash flow of her husband’s business. She hired a financial planner and two stockbrokers. (My father, born at the start of the Great Depression used to say, “Stockbrokers. The stockbrokers job is to make you broker and them richer.”) These two stockbrokers got my client involved in a series of bad investments which cost her millions of dollars. She then married a “near-do-well” man who was a nice man and good step-father to her children, but who had absolutely no business sense. He continued to borrow money from her, which he promptly lost in the construction business. She bought new Mercedes, new BMW’s (extravagant go-carts for her children). She bought $3,000.00 blue jean outfits, huge diamonds and extravagant furniture. She sold her house that was paid for, which she received in the divorce settlement, so that her new husband could build her a mansion on the 40 acres she received in a subdivision that was supposed to be sold off in lots to produce more money for her estate. Instead, she had a big mansion in the middle of the 40 acres along with all of the expenses that went with that poor decision.
Another client structured some of the settlement proceeds with an annuity and with the rest bought a new Hummer, a new Navigator, a big fancy house full of expensive but poor quality furniture, new electronics, four-wheelers, horses, and home gyms. As you can imagine, it didn’t take long until all of the money that was not structured was gone. This couple burned through almost a million dollars within a year.
A client who had been blinded in a medical malpractice event received seven million dollars. As is my custom, I advised him to buy a structured settlement annuity. He refused. With his settlement proceeds, he bought a new Jaguar for himself to be driven around in and Navigators and Hummers as well as condominiums for all of his children. He gave his brother, the preacher, a half a million dollars to build a church. He loaned all of his relatives money. He bailed all of his relatives out of legal trouble. He married his next door neighbor who persuaded him to buy a mansion and another luxury car in their joint names. The proceeds of his case were fully expended within four years of the settlement.
In another case, a very bright man whom I admire and respect, structured at my insistence, a fourth of his settlement. The rest of the money he invested in the stock market and real estate ventures. He became a day trader. For a couple of years he was furious that he listened to me and structured part of his settlement. At the end of the two years, he had lost all the money he took to invest and the only amount of money he was receiving was from annuity and his disability payments from the VA and the Post Office.
Fortunately, some of my clients use their settlement proceeds in a prudent manner. Some clients buy a structured settlement annuity; some pay cash for a home; others pay their tuition for a college education and/or invest in real and tangible assets.
I think we all believe we are smarter than we really are when it comes to money, myself included. I admit to making my fair share of imprudent investments over my life time. It has been a steep uphill learning curve to handle money.
Let me tell you this, if I had a severe injury and could not work any more and had one shot at financial security in the form of a personal injury settlement, I would invest it in a structured settlement annuity. Therefore, I advise my clients to do the same.

How To Choose A Personal Injury Lawyer

admin — Tue, 07 Sep 2010 15:56:39 +0000

With the advent of lawyer advertising, the criteria by which clients pick personal injury lawyers can have little or nothing to do with the skill, knowledge, or expertise of the lawyer they choose. A lawyer who has never seen the inside of a courtroom can promote himself or herself as an expert in the field of personal injury through the clever use of marketing. For example in the Atlanta area, an attorney, who seems to have leased most of the billboards on the interstates in the city, claims that he has one 28,000 cases in 28 years. To the injured client who has never had a personal injury claim, such an assertion seems to mean that the lawyer is vastly experienced and has won thousands of cases. Looking at the assertion on its face, however, consider that there are 250 working days in the year. If the lawyer has been practicing law for 28 years then he has won 1,000 personal injury cases per year for 28 years. If there are 250 working days in a year, this means that he has “won” 4 cases a day. How much work do you think it takes to adequately, much less expertly and professionally, prepare and try a personal injury case? Medical records must be ordered, received, reviewed and organized. Exhibits must be created illustrating the injuries. Depositions must be taken of the police officer, fact witnesses and doctors for use at trial. Negotiations must occur between plaintiffs lawyer and the insurance adjuster or the plaintiffs lawyer and the defense counsel. Mediations usually occur. In addition, trials are extremely complex events, which require skilled, seasoned attorneys who have trial experience. Such experience takes years of study, practice and actually trying cases to hone ones skills to perfection. What the advertiser is actually telegraphing to the public is that he is running a high volume, high turnover personal injury factory. His money is made by turning the cases quickly. The insurance companies are smart enough to know that in dealing with such a law firm they can settle cases for a fraction of what the case would be settled for with a serious trial lawyer.
An alternative approach for the client in the day of lawyer advertising, is to conduct some simple research. Research the lawyer on the internet. By using the internet, you can access the lawyers Martindale-Hubbell rating. Excellent lawyers and law firms may have a “preeminent” rating with Martindale-Hubbell. The highest attorney rating is an AV. The majority of lawyers are rated AV and if the lawyer doesn’t have such a rating, this should be a red flag. Go somewhere else. You can also conduct research for a personal injury attorney on www.avvo.com. On the AVVO website, you can read about the lawyers one to ten rating scale as well as comments and ratings by former clients and colleagues.
Once you have narrowed your search and decided on a few select individuals, you should take the time to conduct further research on their websites. The attorney’s educational background will be present for you to determine if the lawyer has a solid academic background, any additional certifications or board certifications or belongs to any other professional organizations or specialty organizations. Such certifications and memberships indicate an ongoing interest in continuing to keep their legal skills current, and specialty memberships indicate special knowledge and expertise in the field that the organization represents. You should also be able to determine if the lawyer has published any papers in the field of law having to do with personal injury. You may also be able to find out if the lawyer has performed any teaching. Frequently, law schools and continuing legal education organizations will invite skilled advocates to teach other lawyers how to handle or try cases. Also, lawyers who are well respected within the legal community are usually asked to speak at legal seminars or chair legal seminars. If the lawyer is one who has participated in or chaired such seminars, it is a pretty safe bet that he or she is skilled and experienced in the field in which they are presenting. Another good idea is to check with the State Bar Association to determine if the lawyer you are wishing to hire has ever been sanctioned. If so, this can be a red flag.
The attorney’s website may also demonstrate that he or she has served on boards of organizations which focus on certain types of injuries or disabilities. This not only indicates a willingness to assist fellow members of the community, but it also is indicative of a level of expertise. Along those same lines, you may wish to find out if the lawyer engages in any charitable activities. While giving to charity is a personal choice, it is also a characteristic of someone who is caring and compassionate. Such an individual may also demonstrate this same level of caring and compassion toward you.
After you are satisfied with your level of research, contact your chosen lawyer and ask further questions. Be blunt. Ask him or her, “how many cases have you actually tried to a jury? Tell me some of the highlights of your career in terms of your trials? What is your case load? Will I be one of a thousand cases, or will I be one of 15 cases?” Decide for yourself how much time the lawyer will have to spend with you and your case. Another good indication of the attentiveness of a lawyer is if he or she is willing return your phone calls in a prompt manner, or if you will always be speaking to only the paralegal or secretary. It is important to be able to speak with your lawyer directly. In addition, determine if the lawyer will copy you on all of the correspondence and pleadings automatically. Also, ask questions about possible settlement in terms of under what circumstances the lawyer will attempt to settle the case before filing suit, or if the lawyer thinks it is appropriate to file suit from the very beginning. Determine for yourself if the explanation makes any sense. Some cases can be settled pre-suit, while others require litigation to fully appraise the strength and weaknesses of the case to obtain the optimal result.
Another suggestion in order to find a competent attorney, is to ask your friends and relatives for a referral. Even if your friends and relatives only know of an attorney in a different field of law other than the one you are seeking, call their referral. Frequently, lawyers who specialize in a different area of the law are familiar with the successful and skilled personal injury advocates in the Atlanta Metro area or the state.
Finally, be wary of any lawyer that tries to hook you with some silly jingle or catchy phrase. Use common sense. Is this how a professional markets their skills and abilities, if they are really good at what they do? There are many skilled trial lawyers in Georgia. Be sure you hire a real trial lawyer and not just a great marketer who is presenting you with an image and no substance. Your case is important. It may be your only experience with the legal system. If you have been catastrophically injured and are disabled you will only have one chance at obtaining the best results.
I hope that his advice will be helpful to you and good luck in your search for the best personal injury attorney.