Some Things Bear Repeating!

February 8, 2016

Our loyal blog followers may recognize the article below, from our March of 2014 post.

The question still arises, so we thought it might be time for a repeat of the discussion on escrow funding. 

In conventional personal injury settlements, we’re all familiar with the norm – the Release must be signed first (or Court Approval obtained) and only then will the money flow.

With structured settlements, it’s the exact opposite.  The structure funding needs to be forwarded to the structure broker so that the rates can be locked in, and only then can the appropriate settlement documents be finalized.

While this might cause concern for those not completely familiar with the structured settlement process, it really is necessary so that all the pertinent details to satisfy the requirements of Canada Revenue Agency can be identified and included in the body of the settlement documents.

Even though the structure is funded, no payments are made to the plaintiff and no contract is issued until the Release is signed or the settlement is approved by the Court.  If the settlement is ultimately not completed, the structure funding will be returned, without penalty or interest.

Click here for a more detailed article on escrow funding.