A/K/A SETTLEMENT MANAGEMENT TRUST, SETTLEMENT PROTECTION TRUST, SETTLEMENT PLANNING TRUST
A trust is an instrument established so that property is held by one party for the benefit of another party. The person who creates the trust, by transferring property or money is known as the grantor, settlor or trustor. A trust is governed by the terms under which the trust was established. The terms of a trust are usually stated in a written trust document.
A trustee is a fiduciary, bound by the trust document and is held to a standard of conduct and trust above that of a stranger or of a casual businessperson. He/she/it must avoid "self-dealing" or "conflicts of interests" in which the potential benefit to the fiduciary is in conflict with what is best for the person who trusts him/her/it. A trustee may be an individual, company or public entity.
A Settlement Preservation Trust ("SPT") is a personal injury settlement management instrument with a financial institution, that has fiduciary responsibility to the trust beneficiary, which can be used alone or in combination with a structured settlement annuity. A settlement preservation trust is irrevocable grantor trust. A Settlement Preservation Trust may also be referred to as a Personal Injury Settlement Management Trust, also known as a Settlement Planning Trust, Settlement Management Trust or Personal Injury Settlement Protection Trust.
A settlement preservation trust can provide:
Funding for a Settlement Preservation Trust (SPT) may take the form of a simple check or wire deposit. It does not require any Defendant/Insurer involvement. It can come from any source, including directly from the plaintiff (via cash settlement), or it can be fed by way of payments from a structured settlement annuity.
Distributions can take the form of adjustable periodic payments, via check or ACH direct deposit, for medical health and tax needs, emergency needs and virtually any payment mode except life contingency. Limited personal discretion is a spendthrift feature of the SPT to protect the injured party.
Payments from the trust can be designed for both taxable and tax-free distributions.
The administration of the Settlement Preservation Trust is set up with the injured party in mind. 4structures.com, LLC has a number of excellent relationships with a number of trustees. One of the trustees allows beneficiaries to enjoy lower minimum deposits (one as low as $50) depending on type of trust) and lower ongoing fees than one might expect from a trust company.
Work with an experienced, credentialed settlement adviser like John Darer CLU ChFC MSSC CeFT RSP CLTC, who can patiently explain the settlement trust options and explore its viability as a component of your overall settlement plan.
Last updated August 7, 2023
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Have a question about Settlement Preservation Trusts, or other settlement planning trusts for injury victims? I'm here to help. Call me at 888-325-8640, or send me a message and I'll be in touch.
4structures.com, LLC
The Structured Settlements and Settlement Planning Company
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888-325-8640
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Structured Settlement Experts and Settlement Planning Consultants for settlements from claims or lawsuits arising out of Aviation accidents, Medical Malpractice, settlements involving Serious Personal Injury, Wrongful Death, Wrongful Incarceration, Employment, Civil Rights, Discrimination of any type, Auto accidents, Motorcycle accidents, Maritime accidents, Workers' Compensation, Product Liability, Real Estate Liability, Construction Defect claims or lawsuits, Landlord/Tenant,
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Structured settlements and structured settlement brokerage, settlement planning, Sudden Money®, financial transitionist, funding agreements and insurance related services provided by 4structures.com LLC.
Financial Advisory Services provided through Groove Financial Advisors , LLC, and its service partners.
Fiduciary services, including the custody and administration of trusts provided via service partners.
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