Settlement Planning Services for Plaintiff Attorneys

When a personal injury case is resolved, the financial decisions that follow can be just as consequential as the settlement itself. How you structure the settlement, address applicable tax considerations, design a minor claimant's payments, and structure an attorney’s contingency fees can all have lasting financial implications.

Prospera works with plaintiff attorneys and settlement professionals to navigate these decisions, providing specialized solutions, product expertise, and documentation support to help turn settlement proceeds into practical financial strategies.

Our settlement planning solutions address a wide range of financial needs, from structured settlements and attorney fee deferral to minor claimant planning and complex settlement planning.

Structured Settlement Planning

Structured settlements offer an important way to meet a claimant's financial needs over time. Instead of receiving an entire settlement as a lump sum, claimants can receive periodic payments based on anticipated expenses, income needs, and long-term financial goals.

When properly structured, qualifying payments arising from personal physical injuries or physical sickness may be excluded from income tax under IRC §104(a)(2).

Traditional fixed annuities offer predictable, guaranteed payments and remain an important part of settlement planning. However, fixed payments may lose purchasing power over time as inflation increases the cost of living.

Prospera expands the range of available solutions through its Growth Structured Settlement (GSS), which introduces market-based investment participation within a structured settlement framework. For claimants with longer time horizons, GSS offers the potential for investment growth and can complement traditional annuities as part of a broader settlement strategy.

Prospera also offers Settlements Plus, providing additional options for investment based on the claimant's financial objectives, payment preferences, and risk considerations.

Market-based investments involve risk, including potential loss, and returns are not guaranteed.

For more complex needs, Prospera works with professionals to address special needs trusts, pooled trusts, Medicare set asides, lien resolution, and international payment coordination.

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Settlement Planning for Minor Claimants

Settlements involving minors require careful consideration of both immediate needs and long-term financial protection. Depending on applicable state law and the case circumstances, courts may require approval to ensure the settlement serves the minor's best interests.

Payment design is especially important for younger claimants. Attorneys must consider future education expenses, ongoing medical needs, financial support, and the appropriate timing of distributions.

Structured settlements can provide scheduled payments around key life milestones while preserving settlement proceeds for future needs.

Prospera works with plaintiff attorneys and settlement consultants to develop payment illustrations, evaluate available structures, and provide supporting documentation for court approval.

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State requirements vary. Some courts limit minor settlements to specific funding options, such as a court registry, trust company, or fixed annuity, or require minimum insurer ratings. Market-based solutions may not be approved in every jurisdiction, so attorneys should confirm what the court will accept early in the process.

Qualified Settlement Funds and Mass Tort Planning

Complex settlements often involve multiple claimants, unresolved liens, allocation decisions, and administrative requirements that extend beyond the initial settlement agreement.

A Qualified Settlement Fund (QSF), established under applicable federal tax regulations, can separate the defendant's settlement funding from the subsequent allocation and distribution process.

For plaintiff attorneys managing mass tort litigation or other complex matters, a properly established QSF may provide additional time to address claimant allocations, resolve liens, coordinate benefits, and evaluate individual settlement planning options.

QSF arrangements require careful legal, tax, and administrative coordination. Prospera works with attorneys and appropriate service providers to support QSF planning and the structured settlement solutions that may follow.

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Attorney Fee Deferral

Settlement planning extends beyond the claimant. For plaintiff attorneys working on a contingency fee basis, the timing and structure of fee income can be an important financial planning consideration.

Properly established attorney fee deferral arrangements may allow eligible attorneys to defer receipt and recognition of contingency fee income, subject to applicable tax requirements.

This can provide greater flexibility in managing income across multiple years, planning for retirement, and pursuing longer-term financial objectives.

Prospera's Fee Structure Plus offers a market-based approach to attorney fee deferral, providing investment flexibility and the potential for long-term growth.

Market-based investments involve risk, including potential loss, and returns are not guaranteed.

For attorneys who want to manage income timing while maintaining investment flexibility, fee deferral can be a valuable part of a broader financial strategy.

Explore Fee Structure Plus and attorney fee deferral strategies >

Working with Prospera on Settlement Planning

Every settlement presents unique financial considerations. The right approach depends on the claimant's circumstances, the settlement's nature, applicable tax requirements, and the financial objectives of those involved.

Prospera partners with plaintiff attorneys and settlement professionals to evaluate available solutions, develop appropriate structures, and coordinate the documentation and implementation process.

With more than $1.66 billion in assets under administration, Prospera brings established experience and innovative solutions to an evolving settlement planning landscape.

Whether the objective is predictable income, market growth potential, capital preservation, or greater flexibility in receiving settlement proceeds, Prospera helps attorneys explore solutions tailored to each case's needs.

Connect with Prospera to explore settlement planning solutions for your clients.