After going through the pain and shock of a loved one suffering a catastrophic injury, family members are then faced with another jolt-the realization of the staggering costs associated with keeping their loved one in the best possible health.
A recent Merrill Lynch/Age Wave survey found that 41 percent of caregivers said they entered the role of caregiver suddenly. Ninety-two percent said they provide financial support to their loved one with 71 percent saying their financial contribution causes them stress.
Fortunately, legal guardians of severely injured individuals involved in personal injury litigation have the option of setting up a structured settlement that would provide a consistent stream of tax-free funds for medical treatment and in-home care throughout the life of their loved ones. Money also can be used for everyday living expenses-including food, cleaning and transportation.
Planning must begin before a settlement is finalized. A structured settlement broker goes over current and future medical and living expenses with the injured party or legal guardian. Specific amounts of money can be designated upfront to pay for immediate costs and later to pay for assisted living facility expenses when the injured individual can no longer be cared for at home. Funds can be earmarked for college, home and car modifications and other major expenses. The structured settlement distribution plan is designed to be flexible.
In most cases, nothing can repair the physical or mental damage caused by the injury, but with a long-term financial strategy in place, at least money pressures can be alleviated.
To download the Merrill Lynch/Age Wave study, go to here.
For questions about structured settlements for catastrophic injury clients, feel free to give me a call.
-Pat
