NSSTA Structured Settlement Stories

NSSTA is proud to report a major new federal regulatory development now establishes the ability to receive a structured settlement without jeopardizing housing assistance provided by the federal government.  In 2019, John McCulloch with IFS led the effort with NSSTA and the American Association of People with Disabilities (AAPD) to encourage the Department of Housing and Urban Development (HUD) to add new income exclusion language to the “Housing Opportunity Through Modernization Act.” 

NSSTA was selected to present to the South Carolina Judiciary about structured settlements and structured settlement factoring. 

Susan Stauss with Cozen O’Connor, Sandy Jones with Faegre Drinker, and John McCulloch with IFS represented the National Structured Settlements Trade Association(NSSTA) to provide information about the history and benefits of structured settlements for injury victims and their families. 

A person may be injured in the line of work and file a lawsuit for compensation, which can be given as a lump sum or a structured settlement. A structured settlement is whereby the affected person gets a steady amount of payments for some time. This is the best-preferred method, but it also comes with some setbacks, especially when the person needs a large amount of money to offset medical bills or buy a house. That is where a third-party company, mostly called “factoring companies”, comes into place to help.

In 1973, my daughter was born with brain damage, which I believe was the result of medical malpractice. Although my daughter is mentally alert, she is physically handicapped and unable to speak clearly. My former husband and I initiated a malpractice lawsuit which, in 1980, produced a financial settlement that went into a protected account. Unfortunately, my husband took this money and invested it in his construction company which went bankrupt a few years later. The money for our daughter was gone and soon my husband filed for divorce. I received no child support.

In 2000, our son was the victim of an injury at birth. For the rest of his life, he will require medical and rehabilitative care. Right before our malpractice trial our family accepted a financial settlement that included a structured settlement. For us, the key advantage of this structured settlement is the peace of mind knowing that our son is guaranteed to have income to meet his needs for his entire life. As long as my husband and I are on this earth, we'll take care of our son.

In 1998, my son was hit by a truck as he was bicycling. After years of painful rehabilitation, he is a miracle. He runs, rides a bike and smiles like any other teenager. I chose a structured settlement for our medical and living expenses. Since then, our payments have arrived on time and in full, exactly as we designed. Parents of children who have been in an accident or who have a disability are under a special obligation. We must ensure that our settlement provides maximum protection.

In 1989, an oncoming truck in the wrong lane hit our car head on, injuring three in our family. As we looked at options for our lawsuit settlement, the structured settlement stood far above everything else. We wanted guarantees. We wanted security. And we didn’t want to have to worry about sudden economic changes. We were so impressed with the structured settlement that as a condition of settling our lawsuit, we demanded and received not one, but three structured settlements – one for each member who was hurt.

“In 1992, I was in an auto accident that wasn’t my fault. The accident caused back and neck injuries that forced me to give up my nursing job. Three years later, when my case settled, I was married and expecting a child. I was tempted to take cash, particularly given our childcare expenses. Instead, I put almost all the money into a structured settlement that will begin payments when I retire.

“After my husband died in an accident, I spent a long time researching how to protect my family’s financial future, particularly when I’d need it most — my children’s college years. I chose a structured settlement because I could set up payments to pay those extra bills during their college years. That plan has worked beautifully.