At Fairfield Funding, we have been providing structured settlement services since 2002 with the goal of securing the futures of those harmed by the negligence of others. As a dedicated structured settlement funding company, Fairfield Funding works with injury victims to help ensure they receive fair compensation that meets both current and ongoing needs.
We believe structured settlement annuities, when set up properly, can provide significant financial and practical benefits for those suffering losses due to serious personal injuries.
Structured settlements provide steady tax-free income over 5, 10, 20 years, or even a lifetime, helping victims pay for necessities, medical care, and living expenses.
Our priority is educating injury victims so they can make fully informed decisions about settlement offers that account for long-term financial security and quality of life. We aim to provide both compassion for what victims are enduring and expertise in guiding them towards beneficial solutions.
History Of Structured Settlements
Structured settlements started becoming popular in the 1970s as a better way to help injury victims in the long run. Lawyers realized getting a single big payment all at once often didn’t work out too well for their clients. People would just spend it too fast without thinking about their long-term needs.
So lawyers looked at other options like having payments made regularly over many years instead. This idea started in Canada and soon expanded to the United States too. Judges also liked structured settlements more because it protected injury victims from running out of money down the road.
By the 1980s, structured settlements had become widely accepted in personal injury cases. The US Congress passed the Periodic Payment Settlement Act giving structured settlements special tax advantages. As long as the payments stretch out over time, injury victims don’t have to pay any income tax on the money. This made structured settlements very financially appealing. Their use continues to grow today.
Structured settlements help injury victims in two important ways:
- Steady payments act like “replacement income.” If someone can’t work anymore after an accident, these regular installments help pay the bills and provide income they’ve lost.
- Paying out over time prevents wasting money all at once. Getting one big lump sum settlement can tempt people to spend it too fast without thinking about future needs. Structured settlement tax-free payments meter it out slowly so the money lasts.
Common Situations Where Structured Settlements Help!
A Structured settlement annuity can assist injury victims in many situations, especially when the impacts of an injury are severe and permanent. Some examples include:
Severe Injuries with Permanent Impact
When an injury victim faces lifelong disabilities or medical complications, they require an ongoing source of funds to pay for expenses such as medical bills, assistive equipment, and home healthcare. Savings from a lump sum payment may not last forever. Structured settlements provide reliable periodic payments to cover recurring costs for as long as needed.
For instance, if a young person suffers a spinal cord injury, they could require specialized wheelchairs, regular therapy, modification of living space, and more over decades. Rather than worrying about how long a fixed amount of money will last, structured settlements offer renewable income to supplement other resources.
Wrongful Death of Family Breadwinner
The death of a family’s primary earner can spell financial devastation. Structured settlements give stability back to grieving families struggling to stay afloat.
If a parent is killed due to another’s negligence, the surviving family may be suddenly deprived of the wages, benefits, and support they depended on. Structured payouts act as replacement income helping to fund necessities like housing, food, transportation, and education during the years ahead.
Birth Injuries Resulting in Disability
When infants suffer harm during childbirth due to medical negligence, birth injuries can necessitate extensive care throughout their lifespan. A Structured settlement agreement provides funds over time to help pay expenses that health insurance or government benefits don’t fully cover.
For example, therapies, special education, modified vehicles, and personal aides often cost thousands per year. Recurring structured payments over decades ensure money keeps flowing even after an initial lump sum is depleted. For parents needing to set aside funds for a child’s needs into adulthood, structured settlements allow for allocating money specifically towards future medical procedures, equipment purchases, or attendant care required.
At Fairfield Funding, our structured settlement experts have in-depth experience designing customized payment schedules, amounts, and durations to address income loss, unusual medical costs, home modifications, and other essentials accident victims require due to permanent disabilities. We aim to fund as many necessities as feasible so that victims can focus on healing rather than financial distress.
Important Factors to Consider When Evaluating a Structured Settlement Offer
Because structured settlements provide a stream of payments over time rather than one immediate infusion of money, recipients must consider several key factors when assessing offers. Our Financial expert at Fairfield Funding provides knowledgeable guidance, empowering injury victims to evaluate proposals with full comprehension of the short and long-term trade-offs.
Some Vital Considerations Include:
- Time Horizon
Structured settlements cover 5, 10, 20+ years.
Victims with permanent impacts or disabilities need extended income continuity, so young individuals often benefit the most. Someone at retirement age requiring significant care may find better options such as purchasing a private annuity.
- Customization Potential
The best structured settlements align payment distribution schedules, amounts, annual increases, and duration to an individual’s specific projected expenses.
For example, allocating larger payouts towards future surgery dates, college tuition, or when childcare expenses decrease. Fairfield Funding helps victims and families model different scenarios to optimize settlements.
- Market Risks
Structured settlements provide reliable income for recipients compared to volatile stock market returns. However, the underlying mix of annuities and U.S. treasuries funding payments should still be diversified and actively managed for safety, growth potential, and responding to economic shifts over decades.
Our analysts pay meticulous attention to ensuring financial instruments used to fund structured settlements balance protection and performance.
- Fees/Expenses
Some structured settlements involve excessive fees reducing net payouts. At Fairfield Funding we keep administrative costs low and transparent. We also empower recipients to maintain control over when/how payments are distributed rather than assigning rights to third parties.
- Ability to Meet Unexpected Needs
Even with consistent structured payouts, sometimes accident victims require immediate access to more funds – for example, to purchase specialized equipment after an unexpected medical diagnosis related to original injuries.
When feasible based on financial instrument flexibility, Fairfield Funding will build in contingency access to portions of remaining settlement monies when recipients demonstrate an urgent need.
By understanding these main considerations, injury victims can evaluate if a proposed structured settlement truly aligns with their near-term and long-range financial needs and priorities. The team at Fairfield Funding guides victims in assessing these aspects relative to their unique situation!
Common Concerns and Our Guidance!
While structured settlements offer advantages, recipients do express some common concerns Fairfield Funding routinely addresses:
Concern#1: Losing Flexibility With Recurring Payments
Some injury victims worry committing to pre-defined payment schedules leaves little room for adjusting course if needs change. We ease such concerns by adding contingencies where viable, ensuring acceptable options to reconfigure amounts if circumstances warrant. These include:
Building in supplemental lump-sum stages for anticipated events like surgeries or special therapy sessions. Or allowing victims to adjust future payment timing/amounts within predefined parameters based on medication costs, equipment needs, etc.
If immediate funds are absolutely necessary, Fairfield Funding also informs recipients of the option to sell a portion of remaining structured settlement payments at a discounted rate, providing access to quick cash in times of health or financial crisis. We ensure victims understand the tax implications and relative merits of such arrangements versus other alternatives if debating this route.
Concern#2: Taken Advantage By Insurance Company
Injury victims often feel vulnerable negotiating with mighty insurance carriers. To empower clients, Fairfield Funding independently reviews proposed structured settlement terms to validate that nothing gets overlooked and that payout calculations represent a fair value exchange for the release of liability. Should we determine the offer comes up short, we will work tenaciously to negotiate improved compensation through structured payments or other means suitable to the plaintiff.
If discussions around structured settlement offers to reach an impasse, Fairfield Funding stands ready to contribute our resources to assist victims in building a case for litigation. Our mission does not end because settlement talks stall. We will tirelessly advocate for victims to receive rightful compensation.
Concern#3: Dealing With Complex Legal Issues
The intersection of tax law, financial regulations, liability disclaimers, and estate planning rules surrounding structured settlements can perplex even savvy legal minds. We appreciate that injury victims still coping with grief or disabilities lack the bandwidth to parse legal technicalities. Fairfield Funding serves as an interpreter and guide. We liaise closely with client attorneys to ease confusion, always explaining important rules, clauses, and decision points in simple, understandable language appropriate to recipients at various education levels. Our support with navigating legal complexities lets victims focus energy on emotional and physical healing.
Conclusion
Structured settlements provide a proven vehicle to ensure financial stability and access to vital resources for injury victims when structured thoughtfully. Fairfield Funding offers both coveted expertise and genuine compassion standing shoulder-to-shoulder with injured parties and families as they navigate toward their rightful justice.
We invite those seeking understanding around proposed settlements or struggling to secure fair compensation to tap our commitment to positive outcomes. Our advocacy persists until victims can look ahead with confidence rather than anxiety.
