Beside competent service, seriously injured clients want:

10. To celebrate. After their case is over, they want to be entertained so that they can raise a glass or two of cheer, and talk about their ordeal, the relief they feel, and express their appreciation to the legal team that led them to victory.

To read Parts 1-9, go to www.personalinjury411.com

Skylar and her parents sat next to me at a table in my  office.

“It’s important to realize that there have been a lot of cases where victims have gotten large sums from defendants but lost it all very quickly,” Joe began after the appropriate pleasantries had been exchanged. “There are three major groups of people that are at high risk for losing large lump sums. The first two are lottery winners and those who cash out their retirement plans. But in those cases, even if they lose all of their money they can always go back to work to support themselves. You, Skylar, a wheelchair bound person, belong to the third at-risk group: victims of catastrophic injuries. Your ability to support yourself with a job will be very limited, so it is extremely important that any settlement that you receive is designed to last you your whole life.”

Skylar nodded in understanding.

But Kevin, her father, expressed his doubts. “Why shouldn’t a bank or a investment firm like the one that handles my company pension get the money? What is so great about a structured settlement?” Kevin asked. “How will having one provide extra security for Sky?”

“Structured settlements are designed with multiple layers,” Joe explained. “The money is invested in guaranteed, conservative annuities that grow with inflation. They take care a number of issues, such as providing money for potential home caretakers to have the time to look after the injured person and a weekly or monthly income to replace wages that Skylar will not be earning. Annuities insure a dignified lifestyle for the injured person. I try to foresee any possible problems that could emerge, even years down the line, and then budget for them using the settlement money.

“The idea is to establish a yearly budget financed by a small portion of the return on the investments made using the settlement money. It’s very important to live within this budget and not rely on constantly withdrawing money from the principal. We in the industry call that ‘feeding the bear.’ The more you take out of the principal, the less it grows and it might not be able to grow fast enough to support all of your needs.”

Joe paused and raised his hands in the air, gesticulating deliberately. “You must get rid of the expectation of being rich. The money you receive will be to make you whole, not to allow you to live a millionaire lifestyle.”

“How can I determine what a reasonable amount for me to be spending would be?” Skylar asked.

“That’s what I’m here for. I will balance your needs and your wants. You might want the Taj Mahal, but my first concern will be to allocate money for a house that fits your particular needs and is optimized to allow you to carry out your necessary daily living activities. If you wanted something fancier, or if, for example, you wanted to pursue a particular interest of yours, that is all something that can be budgeted for, but the important thing is to plan it out ahead of time. Sticking to a plan is what’s most important. Withdrawing money as you see fit without regard for a budget is the best way to go broke.”

Maureen, Skylar’s mother,  shifted in her seat. “How much money should Skylar be expecting to receive?”

Joe lifted his left index finger in a “one moment” gesture and reached into his brown leather briefcase. He pulled out several colorful graphs and flowcharts and handed them to Kevin and Maureen. “Here are the valuations that several experts have done for your case. There are certain sums that you won’t be able to recover. For example, your insurance has already paid out 4.7 million dollars in medical bills. That is not something that you will be able to recover a second time.” Joe proceeded to explain the estimates that he and the other experts had arrived at. In a “you can’t lose it case” like one in which a tractor-trailer hits a car in the rear, fifty million dollars had been the highest recorded verdict for a quadriplegic who had no use of his limbs and had no sensory feeling. He couldn’t feel a kiss or a hug, not even a needle prick. C5 victims’ verdicts ranged from ten to thirty million dollars, which were diminished by the percentage of negligence attributed to a victim. For instance, if a jury awarded thirty million dollars and found the victim to be 20% responsible, the verdict was reduced by six million dollars. By the end of the meeting, I was confident that the Skylar, Maureen and Kevin understood what kind of settlement offer would be acceptable and how the money would be invested and spent to ensure that Skylar’s needs would be provided for life.

Are you and your family members protecting your future? Or are you treating your hard earned victory like you hit the lottery?