A Settlement Preservation Trust is a tool that can be used to protect plaintiffs’ cash settlements and awards from dissipation when a structure is not possible.
Settlement Preservation Trusts are irrevocable trusts and typically contain spend-thrift provisions. This helps insure stability and protection against the plaintiffs’ general creditors so that future needs are not disregarded due to careless financial management.
With locked-in payment schedules, Settlement Preservation Trusts can be customized for any situation. The ability to customize is a very valuable feature because it means that the specific needs of each plaintiff can be managed more effectively. Payment schedules can be created and Court approved just as with a Structured Settlement.
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