Bentzen Funding Solutions

468B trusts

Rob Woods was interviewed re 468B trusts on S2KM's podcast.  This was a very informative pod-cast and Rob provided his opinions and updates.  He mentions that congress states a 468B trust is for one or more plaintiff's, yet there is this continual controversy surrounding its use for the single plaintiff.  He also states that Treasury will be providing guidance on this and cautions structured settlement brokers to be careful about setting them (single plaintiff 468B trusts) up until we know more. 

   

Change at NSSTA

Today, long term spokesman, Randy Dyer, for the National Structured Settlement Association (NSSTA) was pushed out.  He is being replaced by Smith Bucklin "the largest association management company in the country".

I started brokering structures in 1987 and Randy was the "it" man for NSSTA at that time.  He has devoted significant efforts into the furtherance of structures in this country over the years. The "official" letter is below:

Dear NSSTA Member:

As you may be aware, one of the primary duties of the Board of Directors is to oversee and manage the services contracted for on behalf of the membership. Over the past year, your Board has been engaged in a due diligence examination and review of all its vendor contracts including government relations, public relations, association management, and legal representation.

We write to inform you that upon long and thoughtful deliberation concerning the current and future needs of our association, we have decided not to renew our contract with Trade Association and Society Consultants (TASC). Instead, we have chosen to retain the services of The Smith Bucklin Company to provide our association management services going forward.

As you may be aware, TASC is Randy Dyer’s company and the entity through which he has delivered service these many years. There is no question we would not be where we are as an industry—and as an association—without Randy’s outstanding support and involvement. We are actively working with Randy to craft the best role for him in our future plans.

In the meantime, you should know that Smith Bucklin is the largest association management company in the country, currently supporting over two hundred associations similar to ours. Their depth and breadth of service is truly impressive and - at the same level of cost – makes them a value proposition too great to be ignored. We are confident that they possess the resources and staff to support our association’s work in every respect.

Our contract with TASC runs through the end of this year. However, in order to ensure a smooth and seamless transfer of records and functions, we will initiate a formal transition process starting immediately. Although we have full faith and confidence in the professionalism of both TASC and Smith Bucklin to achieve a smooth transition, it would be unrealistic to expect no issues to arise. During this period, we simply ask for your patience as we move to the new platform.

As a group, we deliver a vital service to claimants, defendants, the courts, and our society at large. A collective commitment to excellence formed this industry and it will be that same quality that drives our future growth. We believe these new resources will form the foundation needed to achieve that goal.

Board of Directors
National Structured Settlement Trade Association

RSP Update

After much anticipation, the first course for the Registered Settlement Planner (“RSP”) designation is open for registration with classes to begin on September 10.  The first course is entitled “Financial Planning and Law for Settlement Planners”.

The mission of the Registry is to train, educate and certify settlement planning professionals who are uniquely qualified to competently and ethically assist injury victims, claimants and attorneys in resolving their legal financial claims.  To further this mission the RSP Board will seek to promote recognition and awareness of the mark and to establish standards of competence and practice for the Registry.

I spoke with Joe Tombs, an adjunct professor at Texas Tech, who is head instructor for the RSP classes.  Here is a summary of what I learned from him:

·         Along with Joe, there will be many well respected professors teaching as well as two teaching assistants.

·         These are graduate level classes, they won’t be easy.

·         There will be only 2 courses required to sustain the learning portion of the RSP.  The 3^rd class will be to prepare a case study in settlement planning.

·         In order to use the designation of RSP, you obviously must pass the course material (blind marking) and case study, but you must also pass a minimum experience benchmark in the field of settlement planning and agree to the code of ethics. 

·         These courses will be done by distance education.  They will e-mail the syllabus, followed by audio tapes, slide shows.  There will also be deadlines and periodic tests.

·         The first course itself will be from Sept. 10, 2007 until Dec. 12, 2007.  The average person will likely spend about 10 hours per week, possibly less if they have a some relevant experience.

·         Cost is $1,250 per course plus the cost of books.  There will be an application fee of $1,000.  This fee helps defray the cost of reviewing candidates’ credentials, background, and comprehensive settlement plan.  It is also used to promote the mark and to assure that the RSP education requirement continues to meet the highest professional standards.

·         Classes capped at 30 people.

·         Any structured settlement broker can take the courses as well as other people who have a keen interest in furthering their settlement planning education.

Joe has worked tirelessly putting together the materials for this exciting new designation.  He feels that this will be the premier designation in the area of settlement planning within 10 years.  The comprehensive marketing planned by the SSP alone will make the RSP a “mark of distinction”.  The first class is filling up fast and starting soon!  Register today!

         

Download registered_settlement_planner_brochure_2.doc

Application.

      

Hand holding

Unlike so many, I have never hyped factoring as the panacea for mountains of quick cash, however, I’ve never I apologized for it either.  To me, it is what it is; a legitimate financial tool for annuitants and estates to gain liquidity from a structured settlement.  I know better than anyone in this business that you can’t plan for all contingencies when finalizing a structured settlement.  Ensuring that the annuitant gets treated fairly is another story. 

A colleague argues that annuitants are not “incompetent boobs”, so in essence, they don’t need their hands held to enter into a factoring transaction.  He has a valid argument, however, these annuitants still need to make an informed decision without being pressured, which is where I believe the problem lies.  Annuitants may not be “boobs”, but so many are truly desperate and easily taken advantage of by the less-than-upstanding members of this industry.  Detractors will say this validates the need for the rules in the first place.  The argument just goes back-and-forth.  The current system of court approvals is flawed, inconsistent, very slow, labor intensive and expensive, however, I can see no feasible alternative at the moment. 

Amateurs

John Darer’s recent articles featuring StructuredSettlement-Quotes.com is so outrageous that it’s almost comical.  The factoring business is full of these independent note brokers who will say and do almost anything to get an annuitant to sell his structure.  The pitches run the gamut from buying a vacation for a new girlfriend to helping your cousin start a new restaurant. How can they be giving annuitants proper advice when so many have neither scruples nor a clue what they’re doing? 

   

Factoring isn’t for everyone as the TV advertisers would like annuitants to believe, however, the business does have a legitimate purpose.  That is, assisting those who have explored other options and carefully decided that an accelerated, albeit discounted, lump sum is in their best interest to pay bills, settle an estate, prevent foreclosure, send a child to college, etc.  That’s why I so strongly advocate that structured settlement professionals get involved, even if they are vehemently opposed to factoring.  The relationship you develop with a reputable factoring company can save your past clients a significant amount of money.  If you don’t direct them to someone trustworthy, these annuitants will eventually find their way to the companies that advertise on TV.  We all know that somebody has to pay for those expensive ads and call centers full of eager commissioned sales staff.  Sadly, in this case, it’s the annuitants who end up paying handsomely.