A settlement protection trust, often referred to as a spendthrift trust, helps provide financial flexibility and controlled liquidity to a plaintiff who experiences a major change in his or her financial position following the settlement of a personal injury claim. This alternative funding device to periodic payments can be used alone or in combination with an annuity. It can help provide spendthrift protection, liquidity and flexibility.

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The trust best serves plaintiffs who have future needs that are uncertain, unpredictable, subject to adjustment and/or are event contingent. A settlement protection trust can:

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• Help prohibit the sale of payments to settlement discounters, meaning more protection of the funds.

• Produce more income as interest rates rise.

• Supplement periodic payments during unemployment or other added need.

• Be combined with annuities for a more balanced structure.

• Avoid approval or involvement of the defendant to establish.

• Limit personal discretion to protect the injured party.