Medical malpractice settlement question

[Anonymous]

I am about to get a settlement for a medical malpractice lawsuit (close to $1 mil). Single parent with twins (19). I will be discussing in more detail with a Financial Planner but wanted to go prepared with my own research. I understand the amount will not be taxed. Should I receive the money in just my name or split across all three of us (or just the kids)? Pros and cons of that? Is that even possible (I'm the plaintiff)? My current NW is about $5M and I want to make sure eventual inheritance taxes are minimized for the kids.

[Anonymous]

I hope you’re ok OP. Tell no one about the money. Read Bogle heads and treat this as Ian inheritance unless you need the money for care or therapies.
That money is yours. Personally, I would contribute the max to Roth, 401 k etc. Are the twins in college? You could out some in 529s for them. And contribute to their Roth’s if they have earned income, You don’t need a planner.

[Anonymous]

Not sure what your age is but just invest this money on all your name and later on in your life decide on the estate and inheritance tax planning.

[Anonymous]

Federal estate taxes in 2020 are triggered when an individual’s estate is over $11.58MM, so you have nothing to worry about at this time.
Put the money into your own account. As suggested above it would be a nice thing to contribute to your twins Roth IRA’s to the legal maximum.
If you’re so inclined, you could gift them up to $15000/year tax free (the Roth donation you make probably counts against this $15k).
You can also gift them additional monies that would count against your lifetime exemption.
I think this is a good start. You then have time to consult with a pro on what else you can do.
Good luck to you.

[Anonymous]

+1 on tell no one.

[Anonymous]

Don't have much advice on your question, but can you share your medical malpractice attorney's name/firm? Looking for recommendations of attorneys with a good track record against large hospitals. TIA.

[Anonymous]

Talk to your financial advisor. You might want to receive it into the kids names, maybe in trust, because that’s the only way to avoid estate taxes. The exemption NOW is $11 million, but you never know if/when that could change and taxes on a state level vary by state as well. But, once it’s in your kids’ names they could blow it all on v-buck or cute purses if they want, so that might be where you want a trust.

[Anonymous]

For medical attorneys - don't go for standard 35% fees. That's for suckers.

I had a case in the past and negotiated structured fee with the attorney. He was a super lawyer too but still agreed. I went fro 15% for a certain amount, say $500K and then 20% from $500-750K, and so on. Was able to negotiated his fees fro 17.5% and saved about $175K.

After listening your case, lawyer would understand if he wants to do it for reduce fees or not. I interviewed atleast 7 lawyers and chose him

[Anonymous]

Anonymous wrote:For medical attorneys - don't go for standard 35% fees. That's for suckers.

I had a case in the past and negotiated structured fee with the attorney. He was a super lawyer too but still agreed. I went fro 15% for a certain amount, say $500K and then 20% from $500-750K, and so on. Was able to negotiated his fees fro 17.5% and saved about $175K.

After listening your case, lawyer would understand if he wants to do it for reduce fees or not. I interviewed atleast 7 lawyers and chose him

lol.

[Anonymous]

Med mal is very expensive and high risk for plaintiff’s lawyers- you must have had a slam dunk case (you also incentivized you lawyer to settle fast rather than rack up discovery expenses)

[Anonymous]

Anonymous wrote:

Anonymous wrote:For medical attorneys - don't go for standard 35% fees. That's for suckers.

I had a case in the past and negotiated structured fee with the attorney. He was a super lawyer too but still agreed. I went fro 15% for a certain amount, say $500K and then 20% from $500-750K, and so on. Was able to negotiated his fees fro 17.5% and saved about $175K.

After listening your case, lawyer would understand if he wants to do it for reduce fees or not. I interviewed atleast 7 lawyers and chose him

lol.

Usually the lawyers who will fall for this need the money desperately and may not hold out to get the top settlement. Usually insurers will settle cases that are good but the insurance defense lawyers need to make sure they bill a certain amount to the case to extract the most fees they can before they will entertain settlement. Even though after all the depositions etc the basic facts of the liability really haven’t changed. Basically you need to hold out the the plaintiff lawyer needs to be able to finance the case far enough until the defense lawyers will recommend settlement.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For medical attorneys - don't go for standard 35% fees. That's for suckers.

I had a case in the past and negotiated structured fee with the attorney. He was a super lawyer too but still agreed. I went fro 15% for a certain amount, say $500K and then 20% from $500-750K, and so on. Was able to negotiated his fees fro 17.5% and saved about $175K.

After listening your case, lawyer would understand if he wants to do it for reduce fees or not. I interviewed atleast 7 lawyers and chose him

lol.

Usually the lawyers who will fall for this need the money desperately and may not hold out to get the top settlement. Usually insurers will settle cases that are good but the insurance defense lawyers need to make sure they bill a certain amount to the case to extract the most fees they can before they will entertain settlement. Even though after all the depositions etc the basic facts of the liability really haven’t changed. Basically you need to hold out the the plaintiff lawyer needs to be able to finance the case far enough until the defense lawyers will recommend settlement.

Do the lawyers normally recommend the amount to ask for? I know the lost wages component is pretty straightforward and based on an expert estimate. Will your lawyer typically recommend what to ask for in terms of "loss of companionship", etc. or are we left to figure that out and advice our lawyer on what it should be?

[Anonymous]

Absolutely do not give money to 19 year olds! If you want to use the money to pay for something for them e.g. college then do that but don't give them money in their own name.

[Anonymous]

PP here. Ofcourse, expenses are always additional additional and it is upto you to see how far you want to take it with any additional info. Not sure if I agree with comments that lawyers would reduce the fee if they are desperate. Out of 7, I was able to get fees reduced from 3 of them. One of my cases against the hospital went as far as 3 meditations and second against the medical device company for a summary judgement after all the depositions etc were done. Ofcourse, we were able to negotiate a higher settlement from the other side after summary judgement came in our favor.

Lawyers do negotiate their fees all the time. It is myth(mostly spread by lawyers) that they don't.

Research what your case is worth and use a tons of examples from lexis nexis to get an idea on your settlement.

[Anonymous]

Anonymous wrote:PP here. Ofcourse, expenses are always additional additional and it is upto you to see how far you want to take it with any additional info. Not sure if I agree with comments that lawyers would reduce the fee if they are desperate. Out of 7, I was able to get fees reduced from 3 of them. One of my cases against the hospital went as far as 3 meditations and second against the medical device company for a summary judgement after all the depositions etc were done. Ofcourse, we were able to negotiate a higher settlement from the other side after summary judgement came in our favor.

Lawyers do negotiate their fees all the time. It is myth(mostly spread by lawyers) that they don't.

Research what your case is worth and use a tons of examples from lexis nexis to get an idea on your settlement.

Some good attorneys will drop their contingency fee a couple percent. I've never seen a good one drop their rates like you claim. It's nice that you 'interviewed' them, but the good ones don't have to discount their rates like you claim you did.

Now, I'm sure you'll spout on about how that's not true, etc. Let me tell you, the difference between a good attorney and a crap one is miles wide, and you don't know unless you've read their briefs, etc.