Alternative To A Structure Settlement
Case Study
PROBLEM:
A lawyer came to us for assistance when his client, determined by the court to be capable of managing her own money, was awarded a large settlement to be paid in a lump sum. “The settlement needed to last her a lifetime and the lack of structure on the payment was potentially eliminating the intended long-term security from the award if she spent the money too quickly.”
SOLUTION:
“As an alternative to a structured settlement, Lois’ team split the award into two buckets – the first was used to purchase a variable annuity contract (segregated fund) for 10 years providing a dependable annual income for this period. The remainder was locked away for the same period in a second segregated fund allowing the funds to grow for her future use. A regular income was provided for the first ten+ years, and, at the same time, the balance of the court award grew without risk of loss in the second segregated fund, leaving more funds to provide a deferred income stream for her future.”
RESULT:
With a customized plan, offering better rates of return with market participation, the client achieved her goal of protecting her capital and converting a court settlement paid up front into an income stream for her lifetime.
