Recently, I have had a conversation with a client who had been recieving monthly payment with lump-sum payments every five years.

There were no existing medical, payments and the person had been able to return to work and provide for their family without relying solely on the structured settlement. So in essence the structured settlement was free money.

What they wanted to do was to sell off a large chunk of their future payments to what equaled approximately 45% of the face value of the payment stream since it was so far out. The rate they were receiving for the payment was fair, and had been compared with three other companies that buy and sell structured settlements. They had a clear-cut plan, of how they intended to use the money, and were to appear as the perfect candidate to sell their structured settlement. The problem, which is not really a problem was they wanted to use the money to pay off debt and start putting money away for their children’s college fund. You say what why is that a problem? Well, because the interest rates they would receive from the college fund would not equal the amount of money they would lose if they just left it in the structure, also the amount of interest being charged by the credit card company was equal to the amount, they would pay to sell the structured settlement. Ultimately, it is their decision as to what they want to do, but once they stepped back a bit and got a better perspective. They realized that if they used the money from their monthly structured settlement and used the money from the next lump sum, they could be debt free.

So what about the children’s college fund, well that is interesting as their children are not that old yet, and with the next lump sum due which totals six years, we explained how they could use that lump sum to purchase an annuity from someone else who is selling their structured settlement and get a better interest rate and have even more money available for their first child when it is time to go to college. Then doing the same thing in another five years for the second child.

Now I know this does not always work; some peoples needs do not fit this model. What this does prove is an outside set of eyes to a very close and personal matter can shed more light into the darkest corners you are afraid to look into.

Now had this client just gone out to a company that buys structured settlements and sold it to them, they would have missed out on the big picture, which netted them thousands of dollars to their end goal. See as a Law firm we are bound to looking out for the best interest of our clients, and present them with the options at their disposal.

These clients could, in fact, change their minds and decide to sell their structured settlement next week, and when they call we will do as they wish. Knowing they are making a truly educated decision.