Block 19.2 Article 2.3 Transfers of Structured Settlement Payment Rights

When Personal Injury Claims are Considered for Periodic Payments or a Lump Sum


Three experts in the field:  Daniel W. Hindert, Joseph Julnes Dehner, and Patrick J. Hindert, published a book in October 2014, Structured Settlements and Periodic Payment Judgments that gives the short list of instances where periodic payments would be appropriate.

Not all personal injury claims are appropriate for a lump sum payment, or a periodic payment, and not all claimants have the right profile for a lump sum, or a periodic payment.

According to the authors, "A "fender-bender" or minor injury claim is probably not a candidate for a structured settlement.  There's not enough at stake, and the claimant may have no need for small amounts of deferred income."

Also, injuries that do not qualify for tax-free receipt of proceeds; like "pain and suffering" awards, are not candidates for tax-advantaged structured settlements.

The following are viable cases for periodic payments:

1.      wrongful death

2.      serious head injuries

3.      spinal cord injuries

4.      serious burns

5.      loss of limbs

6.      multiple fractures

7.      moderate permanent injuries

8.      injuries that require ongoing medical care

9.      loss of enjoyment of life damages-an intangible value of life!

Claimants with the PROFILE FOR PERIODIC PAYMENTS usually have one or more of the following:

1.      those with poor or limited financial management skills;

2.      those with no immediate need for large amounts of money

3.      minors

4.      physical or mental incompetents

5.      elderly persons (or others) with a keen interest in lifetime payments (e.g., to cover nursing home costs for an indefinite period.)

Persons with alcohol, drug, or gambling addiction, for example benefit from periodic payments.  Also persons with a predictable stream of obligations, like mortgage payments, child support or alimony, or medical expenses can benefit from periodic payments.