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EQUITY Profile of the Month
Structuring a Life- Laura Smith
Jane and John Smith have faced many complicated choices, since their daughter Laura was born with a disability. While the decisions they have made have not been easy, their story provides a great deal of insight for parents that may be dealing with many of the same issues.
In the 7 years that Laura Smith has been a part of this world, life for her parents, Jane and John*, has been full of extremely difficult choices. Laura’s birth was “complicated” resulting in numerous cognitive and physical disabilities. While people did encourage the Smiths to sue for medical malpractice injuries, the decision was not an easy or a quickly made one. While Jane and John were concerned about entering into a lengthy and complex legal battle, with all the emotional turmoil and time demands that come with it, the reality was that Laura's present life and her future called for significant resources to maximize her potential, and she had a right to those resources, as well as compensation for her injuries.
For many that encounter injuries- whether through accidents, medical malpractice, or on the job- the entire process is so confusing that often individuals and families completely trust their attorneys to make some of the biggest, life-altering decisions that they will ever face. For the Smiths, while they trusted their lawyer, they knew he was not a financial advisor and that they had to make the best decisions for Laura's life that they could. So, Jane dove in and devoured as much information as she could get her hands on. Once the Smiths knew that there would be a settlement reached and the offer had been made to put some or all of the funds in a Structured Settlement, Jane was determined to gather as much information as she could in order to make an informed decision for her daughter.
Jane did not even know where to begin, as she says: “You don’t even know what you don’t know.” So, she started talking to everyone and made them talk to her in plain language that she understood. She soon realized how important it was to have a healthy dose of skepticism. There is an enormous amount of money in the Structured Settlement industry. There are lawyers, insurance companies, brokers and consultants for both the plaintiff and defense sides of the case, financial planners, and financial institutions offering to manage the funds or to be the trustee if people decide to set up a Special Needs Trust- and they all get a cut of the funds. Jane agrees that not everyone is just in it for the money, but after dealing with so many that are, she found that she really just preferred that people be upfront and honest.
Jane made several crucial choices. First, she insisted that she receive competing quotes from all the insurance companies that are authorized to offer Structured Settlements (after all, Jane wouldn’t buy a refrigerator without shopping around- why would she make the biggest decision for her daughter without making comparisons?) Second, the Smith’s were one of the few that had a Structured Settlement consultant on their side (Plaintiff) that she felt was more objective than a consultant representing the insurance company. Third, while there was a great deal of pressure placed on the Smiths to settle quickly- Jane refused and insisted that she have time to make the best decision, based on the most information she could gather. Fourth, the Smiths were also “encouraged” to place most (at least 50%) of the total settlement into the Structured Settlement option. Jane resisted and they chose to place the entire amount into a Special Needs Trust, but only a portion into a Structured Settlement. Finally, Jane feels that having a knowledgeable Special Needs Trust lawyer that was not particularly vested in the financial choices made, served as a critical advisor.
Being a parent is never easy. Being the parent of a child born with a disability only complicates parenthood even further. Settlements resulting from disablement are controversial- as illustrated by the difficulty experienced by the Smiths on whether to proceed with a lawsuit or not. The difficult decisions are far from over, but because of the informed choices that the Smiths made thus far, Laura’s life is full of hope and options for her future.
*The names have been changed to protect the confidentiality of all involved. If anyone is interested in contacting Laura’s mother to discuss the Structured Settlement or Special Needs Trust process further, please send an email to megan@wid.org
Jane and John Smith have faced many complicated choices, since their daughter Laura was born with a disability. While the decisions they have made have not been easy, their story provides a great deal of insight for parents that may be dealing with many of the same issues.
In the 7 years that Laura Smith has been a part of this world, life for her parents, Jane and John*, has been full of extremely difficult choices. Laura’s birth was “complicated” resulting in numerous cognitive and physical disabilities. While people did encourage the Smiths to sue for medical malpractice injuries, the decision was not an easy or a quickly made one. While Jane and John were concerned about entering into a lengthy and complex legal battle, with all the emotional turmoil and time demands that come with it, the reality was that Laura's present life and her future called for significant resources to maximize her potential, and she had a right to those resources, as well as compensation for her injuries.
For many that encounter injuries- whether through accidents, medical malpractice, or on the job- the entire process is so confusing that often individuals and families completely trust their attorneys to make some of the biggest, life-altering decisions that they will ever face. For the Smiths, while they trusted their lawyer, they knew he was not a financial advisor and that they had to make the best decisions for Laura's life that they could. So, Jane dove in and devoured as much information as she could get her hands on. Once the Smiths knew that there would be a settlement reached and the offer had been made to put some or all of the funds in a Structured Settlement, Jane was determined to gather as much information as she could in order to make an informed decision for her daughter.
Jane did not even know where to begin, as she says: “You don’t even know what you don’t know.” So, she started talking to everyone and made them talk to her in plain language that she understood. She soon realized how important it was to have a healthy dose of skepticism. There is an enormous amount of money in the Structured Settlement industry. There are lawyers, insurance companies, brokers and consultants for both the plaintiff and defense sides of the case, financial planners, and financial institutions offering to manage the funds or to be the trustee if people decide to set up a Special Needs Trust- and they all get a cut of the funds. Jane agrees that not everyone is just in it for the money, but after dealing with so many that are, she found that she really just preferred that people be upfront and honest.
Jane made several crucial choices. First, she insisted that she receive competing quotes from all the insurance companies that are authorized to offer Structured Settlements (after all, Jane wouldn’t buy a refrigerator without shopping around- why would she make the biggest decision for her daughter without making comparisons?) Second, the Smith’s were one of the few that had a Structured Settlement consultant on their side (Plaintiff) that she felt was more objective than a consultant representing the insurance company. Third, while there was a great deal of pressure placed on the Smiths to settle quickly- Jane refused and insisted that she have time to make the best decision, based on the most information she could gather. Fourth, the Smiths were also “encouraged” to place most (at least 50%) of the total settlement into the Structured Settlement option. Jane resisted and they chose to place the entire amount into a Special Needs Trust, but only a portion into a Structured Settlement. Finally, Jane feels that having a knowledgeable Special Needs Trust lawyer that was not particularly vested in the financial choices made, served as a critical advisor.
Being a parent is never easy. Being the parent of a child born with a disability only complicates parenthood even further. Settlements resulting from disablement are controversial- as illustrated by the difficulty experienced by the Smiths on whether to proceed with a lawsuit or not. The difficult decisions are far from over, but because of the informed choices that the Smiths made thus far, Laura’s life is full of hope and options for her future.
*The names have been changed to protect the confidentiality of all involved. If anyone is interested in contacting Laura’s mother to discuss the Structured Settlement or Special Needs Trust process further, please send an email to megan@wid.org