Structured Settlement FAQs

Lump sum payments are typically received within 30–60 days of final settlement documentation and release execution. Structured settlements take slightly longer because the defendant must obtain and fund the annuity — typically 45–90 days after finalization. In cases involving minor beneficiaries or wrongful death distributions requiring court approval, the process can take 90–180 days. Haug Barron Law Group’s support staff monitors all post-settlement timelines and ensures no unnecessary delays in your recovery.

A Medicare Set-Aside (MSA) is a portion of a personal injury settlement set aside in a dedicated account to pay for future injury-related medical expenses that Medicare would otherwise cover. The Centers for Medicare & Medicaid Services (CMS) requires MSA compliance when the claimant is Medicare-eligible. Failure to account for Medicare’s interest can result in denial of future Medicare benefits for injury-related care. Haug Barron Law Group coordinates with certified MSA vendors to obtain CMS approval and protect your long-term Medicare access.

Fair value in a personal injury or wrongful death settlement depends on: (1) the extent and permanency of your injuries, (2) liability clarity, (3) available insurance coverage and defendant’s assets, (4) Georgia verdict data for similar cases in your county, (5) future medical costs and lost wages, and (6) pain, suffering, and loss of consortium damages. At Haug Barron Law Group, we build every case as if it is going to verdict — which is the single most powerful tool for obtaining top-dollar settlements from insurance companies.

Yes. ‘Hybrid’ settlements are common and often the most appropriate resolution in catastrophic injury cases. A typical hybrid might deliver a lump sum to immediately cover outstanding medical bills, attorney’s fees, and costs, plus a structured annuity stream providing monthly income for life with a guaranteed period. Haug Barron Law Group’s attorneys are experienced at negotiating creative hybrid structures that maximize both immediate liquidity and long-term financial security.

When a minor is the injured party or a wrongful death beneficiary, O.C.G.A. § 29-3-1 et seq. (Georgia’s Conservatorship statutes) require court approval of settlements exceeding a threshold amount and may require appointment of a conservator. Structured settlements funded by annuities are often the preferred structure for minor settlements because they provide guaranteed income when the child reaches adulthood. The settlement must be approved by the probate court with jurisdiction over the minor’s estate.

When a defendant settles a case with a structured settlement, they typically ‘assign’ the obligation to make payments to a third-party assignment company, which then purchases an annuity from a life insurance company to fund the payments. This is a qualified assignment under IRC § 130. It releases the original defendant from the payment obligation while ensuring you receive your payments from a financially secure annuity issuer. The assignment company assumes all payment obligations.

Potentially, yes — unless structured carefully. Direct ownership of a structured settlement annuity may constitute a countable resource. However, if the settlement funds are placed into a properly drafted Special Needs Trust (SNT) or used to purchase exempt assets (home, vehicle), Medicaid and SSI eligibility can often be preserved. This requires careful coordination with Georgia’s DFCS, which administers Medicaid through the Georgia Department of Community Health. Our attorneys work with certified SNT planners to protect your benefits.

This depends on how the structured settlement was negotiated. Options include a ‘life only’ structure (payments stop at death), a ‘period certain’ structure (a guaranteed number of payments made to heirs even if you die early), or a ‘life and period certain’ combination. James R. Haug and the team at Haug Barron Law Group always negotiate guaranteed periods on structured payments to protect your family’s interests.

Under O.C.G.A. § 51-4-2, the right to recover wrongful death damages belongs to the surviving spouse and minor children. How the recovery is paid — lump sum or structured — is a matter of negotiation. In cases with minor children, Georgia courts may require that a portion of funds be placed in a trust or conservatorship account. Haug Barron Law Group handles the complex planning involved in multi-beneficiary wrongful death distributions.

Yes, but the process is heavily regulated. Under the Georgia Structured Settlement Protection Act (O.C.G.A. § 51-12-60 et seq.), any transfer of structured settlement payment rights must be approved by a Georgia Superior Court after a finding that the transfer is in the payee’s best interest. Factoring companies typically offer only 50–60 cents on the dollar for future payments. We strongly recommend against selling future payments without expert legal and financial advice.

A lump sum payment delivers the entire settlement amount in a single payment at the time of resolution. A structured settlement delivers the same — or sometimes greater — total value through periodic payments over a defined period, funded by an annuity purchased by the defendant or insurer. Both are generally tax-free under IRC § 104 when arising from a physical injury claim. The right choice depends on your medical needs, financial sophistication, age, and benefit eligibility.