Many of you already know that after 20+ years as a Pennsylvania motorcycle accident lawyer representing bikers and handling thousands of motorcycle accident claims, I have distributed millions of dollars to clients ranging from the age of 16 to 80.
Often, depending obviously on the severity of the injuries, the amount of money distributed for motorcycle accident compensation can easily run into the six and even seven figures. When this happens, the question becomes, “do I have a fiduciary duty to a young client, who may be entitled to a check for $250,000, or even $1,000,000 to make sure they are not going to run out and buy a Ferrari?”.
The simple answer is, unless that individual has been judged incompetent by the Court, then I do not have any such duty in PA or NJ, to safeguard this motorcycle accident compensation money.
However, as a PA and NJ motorcycle accident attorney who routinely deals with large settlements, I feel I have a moral duty to at least mention the possibility of a structured settlement, especially to those under the age of 25.
A structured settlement is a settlement that is paid over time, with interest, and is usually available in many forms. In other words, if the settlement amount the client is going to receive for motorcycle accident compensation is in excess of $250,000, rather than give him/her the entire amount, the insurance company will present a couple different scenarios wherein the client will receive some of the money upfront, and the rest will be paid out over a 2-20 year period.
The Benefit of Structuring Motorcycle Accident Compensation
The benefit of “structuring” the settlement in this manner is to essentially prevent the client from spending all of the money right away and ensures that the client will have money as they grow older.
Most of my clients when presented with this type of offer, usually turn down my recommendation of a structured settlement, regardless of the amount of money, simply because they want all of the money now.
Regardless of the decision, I feel an obligation to mention and explain what a structured settlement is to my clients. They are under no obligation to abide by my recommendation, even though many do take a couple of days to think about.
By the way – the money that my clients receive is completely tax free. They just find the idea of receiving a substantial six figure settlement too tempting to place it into a structured payment.
If you have been injured in a motorcycle accident in NJ or Pennsylvania contact the Pennsylvania motorcycle accident law firm of Lee D. Gaber, the Cycle Attorney, at 888-292-5352, that’s 888-cycle-law!