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When facing the complex world of structured settlements, many individuals wonder whether hiring specialized legal representation is truly necessary. This article explores the value proposition of structured settlement attorneys, helping you determine if their expertise justifies the cost in your specific situation.
Understanding structured settlements
A structured settlement is a negotiated financial agreement typically resulting from a personal injury, medical malpractice, or wrongful death lawsuit. Unlike a lump-sum payment, structured settlements provide periodic payments over time—sometimes spanning decades. These arrangements offer tax advantages and long-term financial security but come with significant complexity.
What structured settlement attorneys do
Structured settlement attorneys specialize in:
- Negotiating settlement terms to maximize value and ensure appropriate payment structure.
- Drafting and reviewing legal documents to protect your interests.
- Calculating present and future values of potential payment streams.
- Navigating tax implications to preserve tax-free status of payments.
- Coordinating with financial professionals to design optimal payment schedules.
- Representing clients in court when necessary for approval or modification.
- Evaluating settlement buyout offers if you’re considering selling future payments.
When hiring an attorney makes financial sense
Consider the services of a legal professional if you find yourself in any of these scenarios:
High-value cases
For settlements exceeding $100,000, professional legal representation typically offers a strong return on investment. The complexity and significant financial stakes justify expert guidance. Studies show that represented plaintiffs often secure settlements 3-4 times larger than unrepresented individuals.
Complex situations
An attorney becomes particularly valuable in cases involving:
- Minor beneficiaries requiring court approval and protection.
- Government benefit preservation (Medicaid/Medicare/SSI).
- Multiple liable parties with competing interests.
- Medical complications requiring future care cost projections.
- Trusts or guardianships that must coordinate with the settlement.
- Selling existing settlement payments to factoring companies.
Protection against predatory practices
The structured settlement industry includes some entities with questionable practices. Attorneys serve as a protective barrier against:
- Inappropriately designed payment schedules.
- Excessive commissions or hidden fees.
- Undervalued settlement offers.
- Aggressive factoring companies offering pennies on the dollar.
When you might not need an attorney
You probably don’t need a lawyer for your structured settlement if any of these scenarios apply to you:
Small settlements
For settlements under $10,000 with straightforward terms, the legal fees might represent a disproportionate percentage of the total amount.
Simple circumstances
If your case involves:
- No anticipated future medical expenses.
- No government benefit considerations.
- Clear liability and damages.
- No minors or incapacitated individuals.
Access to alternative resources
Some situations provide built-in support:
- Insurance company representation is adequate for your needs.
- Court-appointed guardian ad litem provides sufficient oversight.
- Free legal aid services are available and appropriate.
Cost analysis: Attorney fees vs. value added
One key deciding factor here is money. Is the value a lawyer adds worth their cost?
Fee structures
Structured settlement attorneys typically charge through:
- Contingency fees: 25-40% of the settlement amount.
- Hourly rates: $200-500 per hour depending on location and experience.
- Flat fees: For specific services like settlement review or factoring transaction assessment.
Value proposition
Research demonstrates that professionally represented clients typically:
- Receive larger initial settlements.
- Benefit from more favorable payment structures.
- Avoid costly tax mistakes.
- Maintain eligibility for crucial government benefits.
- Avoid factoring transactions with excessive discount rates.
Finding the right attorney
If you determine that your specific circumstances justify hiring the services of a legal professional to help with your structured settlement, then keep the following considerations in mind:
Specialized expertise
Look for:
- Certification in structured settlements when available.
- Membership in relevant professional organizations.
- Experience with cases similar to yours.
- Knowledge of both legal and financial aspects.
Red flags
Be cautious of attorneys who:
- Pressure you toward specific settlement structures.
- Have financial relationships with particular brokers or factoring companies.
- Cannot clearly explain their fee structure.
- Lack specific experience with structured settlements.
Alternatives to full legal representation
You have a few options that can leverage legal expertise without hiring a lawyer full-time:
Limited-scope representation
Some attorneys offer “unbundled” services where they:
- Review settlement offers without full representation.
- Consult on specific issues like government benefit preservation.
- Provide document review services.
Non-attorney options
Consider:
- Settlement consultants (non-attorneys with industry expertise).
- Financial advisors with settlement experience.
Final thoughts
Hiring a structured settlement attorney represents a significant investment that frequently pays dividends through increased settlement amounts, optimized payment structures, and protection from costly mistakes. While not necessary in every case, professional legal representation becomes increasingly valuable as case complexity and settlement amounts grow.
The decision ultimately depends on your specific circumstances, comfort with legal/financial matters, and the stakes involved. For most substantial settlements, however, specialized legal representation offers compelling value that justifies the cost.
Before making your decision, take advantage of free consultations with multiple attorneys to assess both their expertise and the potential return on investment their services might provide in your unique situation.
Pave the way with Stone Street
Do you need upfront money for any of the following?
- Annuity
- Structured Settlement
- Inherited Annuity
- Assignable Annuity
If so, we will work with you one-on-one so you get the options that best fit your needs:
- One-on-one consultation.
- Customized solutions just for you.
- Customer service you can count on.
Call us at 866-416-5118 to talk about your financial needs and what annuity payments you have coming to you. We’ll do the hard work and handle the rest of the process!
This information is provided for educational and informational purposes only. Such information or materials do not constitute and are not intended to provide legal, accounting, or tax advice and should not be relied on in that respect. We suggest that you consult an attorney, accountant, and/or financial advisor to answer any financial or legal questions.
