Posted by garland/CA on 7/22/11 6:27pm
Msg #390730

anyone heard of structured settlements?

it's a type of receiving money but in turn looks like you pay an awful lot for it. anyone do these before?

Reply by garland/CA on 7/22/11 6:28pm
Msg #390731

meant to say: it's a way to receive lump sum amount n/m

Reply by Notarysigner on 7/22/11 6:39pm
Msg #390733

Check out the comment in S/C for J. G. Wentworth & Co. n/m

Reply by garland/CA on 7/22/11 6:47pm
Msg #390735

this is through a different SS n/m

Reply by Notarysigner on 7/22/11 7:06pm
Msg #390740

Re: this is through a different SS

I thought your post was asking about Structured settlements. By definition all are the same. Some are retirement buy outs, some are judgment buyouts, etc. Without you listing the particular SS it would be differcult to tell. Why don't you just goodle them and read about it?

Reply by LKT/CA on 7/22/11 7:05pm
Msg #390739

Yes, I do structured settlement signings thru an SS. Yes, they are costly. They have to be court-approved by the judge before the client gets access to the money. I remain impartial and just focus on the job at hand.

Reply by John Schenk on 7/22/11 7:28pm
Msg #390748

Structured settlements don't necessarily have to be court approved. Quite a few cases are settled with structured settlements, unless there is a minor involved. They're done for MANY reasons, some of which are to protect the person receiving the structure payments from just going out and blowing all their money at the time of settlement (normal), or for medical funds to be available in a very well-planned structure, or sometimes they structured payments go into a Special Needs or Supplemental Needs Trust, which is done to protect claimants right to benefits under Social Security and/or Medicare/Medicaid. The latter type of structured settlement is normally in a pretty catastrophic injury to give the claimant a right to funds for things not covered by Social Security or Medicare/Medicaid. In fact, I'm doing one of those right now.

Selling off a structured settlement happens sometimes. They get sold off for pennies on the dollar, and I've closed quite a few of those. In my experience that's normally a result of someone coming into the picture that screws the structured settlement beneficiary i.e. a boyfriend/girlfriend, or some other leach. Sometimes those are inherited when the beneficiary of the structure dies and the money goes to the estate.

There are MANY other variances, and far more than I'd want to address, but YES, I have done those closings before where folks assigned their rights to structured settlement proceeds. Never had a problem with it if it's an inheritance and not the beneficiary. Never have done one for a beneficiary themself, but as a notary I probably would. Somebody's gonna do it, and the beneficiary IS gonna do it, once they've made that choice.

Not legal advice...just what I've seen and done, yada, yada.

JJ

Reply by LKT/CA on 7/22/11 7:33pm
Msg #390750

I should have said: All the structured settlement signings *I've completed* had to have court approval because they have the court application within the docs. I've only done one where it was the beneficiary getting the money.

Reply by John Schenk on 7/22/11 10:36pm
Msg #390765

I should have said

"Structured settlements don't necessarily have to be court approved. Quite a few cases are settled with structured settlements, unless there is a minor involved or any person under a guardianship that is mentally incompetent, which ALWAYS requires court approval."

Any person that has been deemed non compos mentis (mentally incompetent) or that is still a minor would not be someone you will be notarizing docs for unless the probate court (or wherever an incompetent is addressed in your state's court system...probate court in Texas), on an incompetent, or with court approval for a minor. Cashing those out for these folks will likely not happen until their legal disability has been removed and they are free to do so on their own, as MOST courts would never approve cashing a structure out for incompetents or minors. Never say never, but a court watching out for incompetents or minors wouldn't do it, IMHLO.

Once someone is deemed competent or a minor attains majority age, they are pretty much free to do what they want, once their legal disability is removed.

I have formulated quite a number of structured settlements in my life. I can assure you I've always looked to protect silly people that all of a sudden are getting money from just running out and blowing it, which I've also seen in those that refused structures, and then they're broke on their asses in about 6 months to a year, and have been taken advantage of by "friends" and often times family members. If it's in a structure, and you don't bust it, it pays out what it was designed to pay out in the increments and when it was supposed to pay out, whether that be monthly or with also intermittent lump sum benefits, which many have.

Structures are a great deal of work from the structuring side to tailor one for the injured beneficiary. Many I have done are guaranteed for 30 years plus life. Those aren't difficult for a beneficiary of the structure that is on Medicaid or Medicare or SSI because those only allow level payments, other than some cost of living increases, throughout the life of the structure. Those can NEVER have lump sum benefits. If they do, the beneficiaries rights can be terminated for life for a Medicaid recipient, and they will be screwed up for many, many years for a SSI recipient. Very technical stuff and I always hire the best experts in the state the subject to help me on each of these as those Federal, and state, statutes evolve. The legal mumbo jumbo normally comes from an expert in Dallas, Austin, San Antonio or Houston.

Sorry...more info than anyone wanted. They wanna sell it, it's just a doc to notarize. IF they can legally do it, it's gonna get sold. Property tax loans aren't too borrower friendly either. LOL I have no problem doing them.

JJ

Reply by Linda Juenger on 7/22/11 7:34pm
Msg #390751

I have done several through the years. I've actually done the same person 3 times. I shake my head everytime, but none of my business. He teases me and says I am his personal notary on call.

Reply by ikando on 7/23/11 8:58pm
Msg #390906

I had a young man who was living with the mother of his children the first time he wanted to get a lump sum. That young woman was very vocal about not letting his mother know what was happening. Both young people over 21.

The second time, about 2 years later, the young man was living with his mother who didn't want the mother of his children (they never married) to have a chance to get at the lump sum he was taking.

Since there's only a little left to be distributed in about 10 years, I wonder who he'll be with in 2 years?

Reply by topflyt on 7/22/11 11:54pm
Msg #390770

I've done them before...very easy and pay is decent.

Reply by garland/CA on 7/23/11 12:33am
Msg #390774

thank you everyone for your informative responses

was really busy today (just got home, 10:15 pm, PST) with signings so I didn't have much time to look into it and the appointment is tomorrow. From quickly reviewing the docs it is what you are all describing. This one needs court approval.

I really appreciate all the help on this site. You are all awesome!

Reply by MW/VA on 7/23/11 8:26am
Msg #390782

Yes, I get calls for these & I've done them. Most require faxbacks immediately after the signing. You'll need to allow time in your schedule for that. Good luck.

Reply by Linda_H/FL on 7/23/11 8:35am
Msg #390783

I'm baffled. How in the world, in 8 years of doing

signings, have you avoided any exposure to these?

I'm not fond of them. My experience with them has been, for the most part, unprepared people and shoddy paperwork - clients aren't sure of terms, aren't sure they WANT to do it, they sign THEN want to run it by their attorney, my first one the paperwork wasn't even filled in and the client had absolutely no idea how to fill it in, etc etc.

IME they're a LOT of time invested and they really don't pay that well....but that's MY experience. Your experience may be more positive.

Reply by CopperheadVA on 7/23/11 9:13am
Msg #390790

My experience has been same as Linda's n/m

Reply by garland/CA on 7/23/11 9:45am
Msg #390796

there is always something new...

I've done thousands of signings, but this has just never come up.

Reply by Linda_H/FL on 7/23/11 10:05am
Msg #390800

Re: there is always something new...

Guess you're not haunted out your way by all the commercials yelling "it's my money and I want it now!!!" or that song "call J.G. Wentworth, 8-7-7-Cash-Now"... They're all over the tv here - Peachtree not so much a media blitz but they've been in the market for a long time.

I did a debt resolution signing about 6 weeks ago - my first one - THAT was more organized than any structured settlement I've ever done.

Your experience may vary.

Reply by LKT/CA on 7/23/11 2:43pm
Msg #390859

Re: there is always something new...

<<<Your experience may vary.>>>

I'm curious about the specific structured settlement company <of course, do not publish their name> but my experience is the opposite - the particular company I deal with <thru an SS> is very organized, overnights the docs to the borrower at least a week before I meet with the borrower and on the top page of the docs is a sheet with about 26 font black letters that say to the client something like, "Please call Jane E. Doe, your agent, so that she can walk you through the paperwork with you." There's some additional wording on the page but I can't think of it at the moment.

Within various spots of the stack of docs, another 26 font sheet says something like, "These pages MUST be notarized - DO NOT sign these pages until you are in the presence of a Notary." Of the many, many I've completed, only had one person cancel and one person that needed a question answered at the table . Other than that, the rest were ready to sign, had reviewed the paperwork and were fully aware of what was what. I always ask during the confirmation call if the borrower received their overnight package and if they reviewed it and spoken to their agent to get their questions and concerns addressed. I'm usually in and out of those appointments in 20-30 minutes

I'm baffled that our experiences are polar opposites. Maybe the structured settlement companies we each have docs for are polar opposites in the way they operate.

Reply by ikando on 7/23/11 9:03pm
Msg #390907

Re: there is always something new...

LKT, I've done settlements like your case where the docs are well marked and sent to the signer. But I've also helped with docs that I print and carry. I think the settlement companies operate much the same as the title/lending companies. Each has their own methods and paperwork.