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Posted by John Schenk on 7/22/11 10:36pm
"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 |
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