The Settlement Services Group, LLC
TSSG_SS_Planning_Transaction_Schematic_31Mar2012_Exclude_QSF+Transfers
This Schematic excludes, Qualified Settlement Funds and Transfers (factoring) transactions.
A Structured Settlement is a Process NOT a Purchase.
This schematic (diagram) demonstrates the many different contractual, statutory, and transactional inter-relationships (‘circuits’) between the many stakeholders and public policy demands present in many structured settlements and plans. Ignoring these realities exposes stakeholders to unintended risks and possible catastrophic failures of settlement plans, and loss of the "safe harbor" which they desire. It is in the best interests of each party to carefully consider each of these transaction lines to assure that they have adequately accounted for these requirements.
In many ways, this schematic is not unlike the complexities of an integrated electronic circuit. A key to smooth operation of an electronic circuit is to assure that every circuit has a positive and a negative, a beginning and an end – a closed circuit. The electronic engineer is a planner; and the engineer designs the circuits to perform their intended tasks. If there are any incomplete circuits, they are referred to as ‘short circuits’. As many know, ‘short circuits’ will lead to malfunction of the electronic device, and in many instances, short circuits can result in fire, or catastrophic failure.
With structured settlements, and more importantly Settlement Planning, the Settlement Planner, is not unlike the electronic engineer, drawing up the transaction lines to assure that the settlement plan (device) functions smoothly. Similarly, if a transaction involves an incomplete contract, or lacks a perfection of intent and purpose, then these are essentially ‘contractual’ short circuits. With this, there can (and perhaps will), be unintended consequences or catastrophic failure of the settlement intent, which for many stakeholders this means loss of safe harbor.
By applying these simple principles to the convoluted structured settlement and planning environment, stakeholders may more efficiently apply their resources toward their respective goals, and reach and maintain safe harbor.
TSSG_SS_Planning_Transaction_Schematic_31Mar2012_Exclude_QSF+Transfers
This Schematic excludes, Qualified Settlement Funds and Transfers (factoring) transactions.
A Structured Settlement is a Process NOT a Purchase.
This schematic (diagram) demonstrates the many different contractual, statutory, and transactional inter-relationships (‘circuits’) between the many stakeholders and public policy demands present in many structured settlements and plans. Ignoring these realities exposes stakeholders to unintended risks and possible catastrophic failures of settlement plans, and loss of the "safe harbor" which they desire. It is in the best interests of each party to carefully consider each of these transaction lines to assure that they have adequately accounted for these requirements.
In many ways, this schematic is not unlike the complexities of an integrated electronic circuit. A key to smooth operation of an electronic circuit is to assure that every circuit has a positive and a negative, a beginning and an end – a closed circuit. The electronic engineer is a planner; and the engineer designs the circuits to perform their intended tasks. If there are any incomplete circuits, they are referred to as ‘short circuits’. As many know, ‘short circuits’ will lead to malfunction of the electronic device, and in many instances, short circuits can result in fire, or catastrophic failure.
With structured settlements, and more importantly Settlement Planning, the Settlement Planner, is not unlike the electronic engineer, drawing up the transaction lines to assure that the settlement plan (device) functions smoothly. Similarly, if a transaction involves an incomplete contract, or lacks a perfection of intent and purpose, then these are essentially ‘contractual’ short circuits. With this, there can (and perhaps will), be unintended consequences or catastrophic failure of the settlement intent, which for many stakeholders this means loss of safe harbor.
By applying these simple principles to the convoluted structured settlement and planning environment, stakeholders may more efficiently apply their resources toward their respective goals, and reach and maintain safe harbor.