FedGroup today announced the launch of an innovative solution that will fundamentally ease the burden of claimants awaiting payments from a road accident or medical malpractice settlement claims.
The FedGroup Settlement Trust will bridge the financial support gap between the issuing of a court order and when a claimant or their beneficiaries receive the lump sum payout in trust. Until now the industry has tried to facilitate these payments using existing trust structures, which is one of the major factors affecting the flow of funds. However, FedGroup’s unique offering has been designed from the ground up to meet these specific needs.
FedGroup’s proprietary Settlement Trust account structure 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 or the Settlement Trust registered.
“There can often be lengthy delays between the issuance of a court order and the actual court-mandated payout, with Claimants or their Beneficiaries often waiting up to ten months before they receive any financial support or benefit,” explains Grant Field, CEO at FedGroup.
“This can materially impact the quality of life of claimants or their beneficiaries as it denies them access to these vital financial resources which may be needed for continued medical treatment or to improve the quality of life for those who have been left with diminished capacity or permanent impairments,” continues Field. Funds may also be needed immediately to cover loss of income or provide on-going financial support to dependents should a primary breadwinner be injured or killed.
“For over 25 years, caring for beneficiaries has been the rock that the FedGroup business has been built on, which is why we have sought additional ways to support and care for the vulnerable and potentially destitute following the often devastating effects of road accidents or medical malpractice and negligence,” states Field. FedGroup’s proprietary Settlement Trust account therefore seeks to meet the social mandate of court-ordered settlements by ensuring that the care of beneficiaries can start at a time when it is needed most.
In addition to providing instant financial relief to beneficiaries, FedGroup is also able to assist attorneys and advocates in managing the process of Settlement Trust registration, and ensures that the on-going process of trust administration and fund management are made as simple as possible.
“Our end-to-end administrative services ensure that a settlement trust is accessible within 48 hours of the funds being released – a record in the industry,” says Field. “This ensures that we can further reduce the administrative burden on attorneys and advocates because funds can immediately be paid into the Settlement Trust once received by the attorneys. This negates the need to hold funds in an attorney trust or investment account which reduces the costs associated with multiple transfers. It also allows attorneys to move on and help new clients rather than spending additional unnecessary time on administration.”
In addition, FedGroup’s centralised management, enabled through a bespoke IT system designed and built to manage this specific need, ensures that the company becomes the central point of contact for all stakeholders during every stage of the process, with automated regular updates that keep attorneys and beneficiaries or guardians informed of progress.
Once the lump sum payout is received and the Settlement Trust registered, FedGroup will continue to provide administrative services as part of this seamless offering. “This includes maintaining the delicate duty of care of claimants or their beneficiaries entrusted to us by advocates and attorneys, and the management and preservation of the funds needed to provide them with meaningful financial support,” concludes Field.
As with all FedGroup offerings, simplicity and transparency are core elements of the Settlement Trust. For a full list of administrative fees, please visit www.fedgroup.co.