Structured Settlement Lawyer Review
- 5-1101(c) Independent professional advice.–“Independent professional advice means advice of an attorney, certified public accountant, actuary, or other licensed professional adviser:
(1) Who is engaged by a payee to render advice concerning the legal, tax, and financial implications of a transfer structured settlement payment rights;
(2) Who is not affiliated with or compensated by the transferee of the transfer; and
(3) Whose compensation is not affected by whether a transfer occurs.
The Maryland code that REQUIRES you to have independent professional advice is:
- 5-1102(b)(3) The payee received independent professional advice regarding the legal, tax, and financial implications of the transfer.
If used correctly the Independent professional advisor could accomplish and protect the seller while protecting the best interest without putting them in financial harms way in those certain cases where time is of the essence, for example a home foreclosure.
Read the article and see if you agree…..
Excessive reform for Md. structured settlement purchases
Maryland’s recent regulatory expansion in the settlement purchasing industry aims to protect consumers in the wake of one purchaser’s practices in the state of Maryland. Yet, in an effort to address the conduct of a single company that is not representative of the greater settlement purchasers industry (nor a member of the industry trade association), Maryland’s Judicial Review Committee has approved rules that, by prolonging the court evaluation process and requiring the public disclosure of the seller’s private information, could harm the very people the committee wishes to protect.
Structured settlements occur when individuals elect to receive their settlement compensation from lawsuits in regular installments rather than a single, up-front payment. In times of need, the market for selling structured settlements offers individuals immediate access to their future stream of payments. For individuals facing challenges such as foreclosure or eviction, tapping into an asset that is rightfully theirs is critical to overcoming these difficulties. Settlement recipients are entitled to the flexibility to access their funds when they most need them.
In circumstances like these, individuals cannot afford unnecessary delays in the judicial review process — and rule changes in Maryland will significantly lengthen court procedures. Industry leaders support efforts to safeguard consumer interests through disclosure and transparency requirements, as well as by educating payees about their potential agreements. Still, Maryland’s Judicial Review Committee should pursue a solution that both protects consumers, including their right to privacy, and maintains the flexibility the structured settlement purchasing industry provides.
Earl S. Nesbitt, Addison, Texas
The writer is executive vice president and general counsel of the National Association of Settlement Purchasers.
Copyright © 2015, The Baltimore Sun
We have gone to great lengths to educate the sellers and protect their best interests, and their financial lively hood and believe we have succeeded in some of the most conservative counties in the state.
There is no black and white answer for all sellers, there will always be some that require an expedited transfer to ensure further damage is not inflicted, and the best thing is to make sure they understand the ramifications of their decision and helping to evaluate the situation; ruling out all other options. This can typically be done within the standard notice period of any transfer.