What is a Settlement Preservation Trust?
First Capital Surety & Trust Company’s unique Settlement Preservation Trust (SPT) is an irrevocable grantor trust designed to protect your settlement proceeds from wasteful dissipation while helping to make funds available to you in the amounts and at the times you need them most.
The SPT is not designed to replace the annuity funded settlement plan. It is designed to provide you with payment flexibility and controlled liquidity -- these trust features are powerful supplements to any settlement plan.
- The SPT's most important feature is its ability to adapt and to accommodate any change in your future financial needs.
How does a Settlement Preservation Trust adapt to change?
- Most personal injury claimants will experience unexpected changes in their financial condition sometime following their settlement. "Financial flexibility" and "controlled liquidity" are both essential to you when change does occur.
- The SPT is the trust of choice and is the trust best suited when financial flexibility and controlled liquidity are needed. Each SPT is customized to meet your needs.
Who will benefit most from the Settlement Preservation Trust?
The SPT best serves those individuals whose financial profile may be:
Uncertain
Unpredictable
Subject to change
Event contingent
- Variable
How does a SPT work?
There are five ways money can be distributed from a SPT. The decision about which way or combination of ways that is best for you is based on your unique financial condition and needs.
The following illustrates the different ways distributions can be made to you from the Settlement Preservation Trust:
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What are the features, benefits & advantages of a Settlement Preservation Trust?
First Capital's SPT provides unique benefits and advantages in addition to flexibility, liquidity and spendthrift protection. They are:
Cost savings - Our annual trustee fee is lower than the trustee fee charged by most bank trust companies.
Protection - Periodic payments from the SPT cannot be encumbered or sold to a factoring company.
Periodic Payments - Professionally managed investment portfolios are designed to support the SPT.
Individuality - You can direct a change from tax-exempt investments to taxable investments (or vice versa) to accommodate your tax profile.*
Temporary Needs Met - Periodic payments may be adjusted during periods of unemployment or other financial reversals.
Added Feature - Annuity funded payments can be paid into an SPT.
Document Preparation - First Capital develops and reviews all trust-related documents for you.
- Securities Insured - Securities are held in custodial accounts, which are insured.
*Persons authorized to make the change should not do so without input from a qualified financial advisor.
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