QUESTION
Fees on structured settlements, is this right?
Asked on Jul 06th, 2015 on Personal Injury - New York
More details to this question:
I am involved in a personal injury settlements. My attorney was offered an upfront lump sum plus a structured annuity. My attorney intends to take a 1/3 (after expenses) fee of that total amount which is the lump sum plus the face value, instead of the value of the lump sum plus the market value of the annuity (which sells for 64% of the face value.) So, I end up overpaying an extra 1/3 on the difference between the face value and the market value. I tell him to take the annuity as part of his fee, he says this would be illegal and unethical... So, he gets paid all cash.
1 ANSWER
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Barasch & McGarry
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With structured settlements, the lawyer is entitled to take his/her fee on the present value of the settlement. Once the value of the settlement is determined, the lawyer will take the full 1/3 fee from the upfront portion of the settlement monies. In other words, the lawyer is not required to wait to take a fee as the future monies are paid. Once the fee is taken from the upfront portion of the settlement, all future payments are yours, the client, and the attorney has no further interest in those future sums.
i hope this answers your question. Please let me know if you need anything further.
Answered on Jul 07th, 2015 at 2:15 PM