Once the court makes an order against the RAF, or a medical professional or institution, to pay the Claimant, or his or her Beneficiaries, following an accident or medical malpractice, a lump sum payment is normally received. The court may order that the recipient of a payout be paid directly, or for the money to be paid into a Settlement Trust. Even if a court does not order a Settlement Trust to be formed, a Claimant or the Guardian of a Beneficiary may opt for this choice.
There can often be lengthy delays between the issuance of a court order and the actual court-mandated payout. Claimants or their Beneficiaries often wait up to ten months before they receive any financial support or benefit.
In an industry first, Fedgroup Trust Administrators now offers a proprietary Settlement Trust account which ensures that funds are made available to meet the basic everyday needs of claimants or their beneficiaries soon after the court order is issued, even before the lump sum payment is made. This ensures that the social mandate of these settlements can be met and that the process of care can start at a time when it is needed most. The Fedgroup Settlement Trust option also delivers industry-leading, end-to-end administrative services to ensure that trust registration is closely managed and fund management is made as simple as possible. Fedgroup is able to immediately receive funds into the Settlement Trust, as soon as payouts are received by the attorneys. This negates the need to hold funds in an attorney trust or investment account, thereby reducing administrative requirements and the costs associated with multiple transfers. Once the lump sum settlement is received and the trust registered, Fedgroup Trust Administrators simply continue to deliver the industry-leading service that has become synonymous with the brand. This includes the delicate duty of care of Claimants or their Beneficiaries entrusted to us by advocates and attorneys, together with the management and preservation of the funds needed to provide them with ongoing and meaningful financial support.