Bentzen Funding Solutions

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.

      

SNT Co of interest

I am frequently asked who I know that can do SNT's and QSF's that won't complete with them in the structured settlement arena.  Well, I recently stumbled across this company that specializes in the design and implementation of special needs trusts.  Here is what they have to say:

The Trust Company of Sterne Agee is a privately owned, Alabama trust company that provides extensive support in the area of special needs trusts and fiduciary investment management for injured parties and their families.  Special needs trusts often work in tandem with structured settlements and allow clients to maximize public assistance programs, such as supplemental security income (SSI) and Medicaid.  Most special needs trusts are established by court order for settlement or judgment proceeds received on behalf of a disabled party.

Unlike other participants and banks that mention their willingness to administer special needs trusts, we specialize in the design and implementation of these programs, which promote independence and financial stability for life.  As a resource for plaintiff attorneys and settlement professionals, we have developed a network of qualified attorneys that dedicate their practice to special needs trust planning throughout the United States.

Special needs trusts must be administered pursuant to strict guidelines and standards, which often change and cannot be adequately maintained by family members.  The Trust Company continuously monitors the changes in related laws to ensure each case is administered properly.  This unique market niche has not been well serviced.  We have developed a strong reputation as a niche resource for these issues throughout the Southeast, and gladly provide a finder’s fee payment to anyone that brings me into a case that can be closed.  For more information, please contact Brent Thomas at 205-414-3356, or via email at bthomas@sterneagee.com.

New program by Millennium for plaintiffs

Millennium Settlements has introduced "The IFS Home Purchase Program For Injury Victims".  Their hand-out says "IFS (IFS is the parent company of Millennium Settlements, Inc.) would like to help you  return to a more enjoyable lifestyle with our Home Purchase Mortgage Program".  The exclusive program is offered to injury victims who have accepted a structured settlement annuity. This mortgage is apparently though Evolve Bank & Trust and will provide:

- Guaranteed Mortgage Program up to $500,000

- Competitive Market Rates

- No Credit Score Requirements

- Credit Counseling Available

- Finance Your Closing Costs

- Available in All 50 States

 

Hockey, "eh"

I typically don’t accept minor cases because they usually involve a family member trying to get at the child’s money; however, I believe this case is different.  The boy is a budding hockey prodigy who wants to attend a comprehensive hockey program in Penticton, British Columbia, where they billet, attend school, train and compete at a high level. I have seen from both sides of the fence that you cannot always anticipate a claimant’s future needs.  The boy’s structure was set up to be a college fund, but it doesn't meet his needs at the moment.  This school is a once-in-a-lifetime opportunity and who says that this program won’t get him into the NHL or help him obtain a hockey scholarship to a top-tier university.  Here is the mother’s statement to the Court.

 

“I intend to use the proceeds I receive from BFS under the Purchase
Agreement to help my son Joseph continue his education. Joseph, my son
and the annuitant for these payments, has been accepted to Okanagan
Hockey Academy, a very competitive and prestigious school in Canada.
Unfortunately the costs of tuition, traveling and other expenses are
tremendous. I am currently employed but my current salary would not be
enough to pay for Joseph’s school. Therefore, we intend to use the net
proceeds so that Joseph can attend the academy. The court should note
that Joseph receives these payments as a result of the wrongful death of
his father and not through any personal injury of his own. Joseph and I
have thought about this transaction carefully and are grateful that we
have the opportunity to transfer Joseph’s future structured settlement
payments in exchange for a lump sum of money today so that he may take
advantage of this once in a lifetime opportunity and achieve his
dream. I have determined that the sale of the Transferred Payments to
BFS is fair and reasonable, will improve the quality of Joseph’s life
and is in his best interests. The transfer will not subject Joseph to
economic hardship now or in the future.”

Mass Mutual leaving the biz.

Mass Mutual announced today that as of January 26, 2007, they will no longer provide quotes for structured settlement cases.  They will accept lock-ins through that date for cases to be funded not later than May 31, 2007.

Apparently, over the last year, they did a strategic review of all its businesses and concluded that structured settlements is a niche business which is not consistent with the company's strategic focus on growing the career agency system and sales of participating, whole life insurance.

I believe I'm not alone when I say that they will be missed.

Happy Holidays!

To all of you who read my blog and to all of my loyal clients (many of you who are now dear friends), I offer wishes for a very happy holiday season!  Here's also wishing you all a very healthy, happy and prosperous New Year!!

and....as always, It's Ben Fun!

Cheers!!

   

Structured Settlement Forum - a forum for what exactly?

This morning I received an e-mail from a Tamas Venczli wanting to create a "partnership" between our two sites.  This e-mail also went to John Darer, Hartford Life, Creative Capital and Bridge Settlements.  His site is "structured settlement forum" and at first glance appears to be an informative site for individuals seeking information relating to both structured settlements as well as selling structured settlements.  So I searched a little further and here is what I discovered:

In the section called "How a structured settlement annuity works" it claims that in order to ensure that the payments remain tax-free, the structure of payments should not be altered once it has been agreed upon by both parties.  This makes it sound like the annuitant has some kind of control over the payments.  One of the issues I spend most of my time explaining to annuitants wanting to cash out their structure is WHY they can't just get the "cash now".  I go into great detail of how in order for the payments to be tax-free in their hands they cannot own the annuity or it would be considered constructive receipt and thereby rendered taxable in the eyes of the IRS.  I tell them about three little words in their settlement agreement that state very clearly that they do not have ownership rights to the payments but are simply the beneficiary of the payments as set out in that agreement.  Believe me when I say that this explanation is no small task for many to understand.  So, of course the payments should not be altered!  They CANNOT be altered unless they follow IRC sec 5891 and obtain court approval to do so.

Our new Structured Settlement Forum friend then goes on to state that there are laws that govern the "closing" of a structured settlement.  Closing?  You mean cashing out?  Factoring?  Structured settlement transfer?  He also states that a disclosure statement is made available to a customer (customer?  you mean annuitant?) 3 - 14 days before the transfer agreement.  Wrong again.  It's actually 0 - 10 days.  Also in this section he states that the funding company commences payment to an individual (he's now an individual and not a customer?) after acknowledging the assignment and receiving a court order.  In actual fact, it's not the funding company that has to acknowledge the court order but the life insurance company (who IS this guy??).  All of this factoring information on a section called "How a structured settlement annuity works".  Fascinating.  But wait!  We're only just starting!  At the end of this section it says Ready to cash out of your structured settlement?  Get the most cash now for your structured settlement or annuity payments with the Structured Settlement Alliance.  Is that the same Structured Settlement Alliance that John Darer, on his blog, says is the alter-ego for J.G. Wentworth? 

He also has a section called "Why a structured settlement payment is a popular choice".  Here he states very often individuals who come into money by acquiring a lump sum are unable to invest it wisely and often spend it wastefully (for once, very true), this is not possible with a structured settlement where small amounts are made available periodically and therefore a person's spending is regulated......these small amounts do not excite the interest of unscrupulous elements (unless, of course, you're J.G. Wentworth).   This section also ends with Ready to cash out of your structured settlement?  Get the most cash now (there's that word again) for your structured settlement or annuity payments with the Structured Settlement Alliance.  But WAIT....it gets even better....

OK, so we knew it was coming.....now there is a section called "The skinny on getting cash for a structured settlement payment".  In this section he says It is not uncommon for a recipient of a structured settlement to come across an investment opportunity that promises better returns than a structured settlement.  At such times, individuals consider cash for their structure to build their own portfolio of investments.  Wow.  Didn't he just say in an earlier section that people who come into money are unable to invest it wisely and often spend wastefully?  And, you guessed it....this section also ends with Ready to cash out your structured settlement?  Get the most cash now for your structured settlement or annuity payments with the Structured Settlement Alliance.

From time to time, I admit that I considered John Darer to be a bit of a Don Quixote when it comes to the shenanigans of the factoring companies on the internet.  But, I get it.  These guys attempt to make their sites appear oh so educational, or hide behind the term "structured settlement", and its variations, but in actual fact it's just another scheme to try to get your unsophisticated annuitant to buy into them.

 

 

Elauria gives thanks

This, in Mrs. Elauria's own words:

I intend to use the proceeds I receive from BFS under the Purchase Agreement to pay for my husband’s treatment at the Brookhaven Hospital’s Neurological Rehabilitation Institute. My husband, Manuel Elauria, suffers from brain damage and is the beneficiary of The Manuel D. Elauria, Jr. Litigation Special Needs Trust.  The total expected cost for six months of treatment at the above-mentioned Hospital is $84,650.00.  Additionally we are now living in Oklahoma for his treatment and will use the remainder of the money to transport him safely back to our home as soon as we have the doctor’s approval.

Ms. Alvarado gives thanks

This, in Ms. Alvarado's own words, as reason for cashing out a portion of her structure:

1. I intend to use the proceeds I receive to get my own apartment and to purchase a reliable pre-owner vehicle. I was in an abusive marriage for six years, in which my husband prevented me from working and from going to school. Fearing for my wellbeing and that of my children, I recently left the relationship after he assaulted me. I am now taking the necessary steps to get my life in order. I intend to use part of the funds from this transaction to move into my own apartment, so that I can recover my children. I am currently living with relatives, sleeping on a couch in a cramped two bedroom duplex and although I appreciate their help I need to be able to provide better for my children. They are currently staying with my cousin for their protection against my husband and until I can get my own place and work to support them. I am enrolled in classes to get my GED and I am now searching for employment. In addition, I am in need of a reliable pre-owned vehicle to enable me to get back and forth to school and to facilitate my search for employment. This transaction will allow me to get a place where my children and I can be together and having a vehicle I will be able to secure employment and begin to rebuild my life and will also help me provide a more stable and safe environment for my children. I have determined that the sale will improve the quality of my life and is in my best interests, taking into account the welfare and support of my dependents.  The transfer will not subject me or my dependents to economic hardship now or in the future. 

Zimmerman gives thanks

Judie Zimmerman has an incapacitated son and is using the proceeds to open up the hallways in her new home for him as well as purchase transportation that can accommodate his wheelchair.  This, in Ms. Zimmerman's own words:

I intend to use the proceeds I receive make some necessary home improvements and purchase reliable transportation, both to accommodate my incapacitated son, January Zimmerman.  My husband and I recently purchased a new home and would like to make some adjustments to the hallway area for January’s wheelchair.  In addition, we would like to purchase a van with a lift so that we can transport January to and from his doctors’ appointments.