SIFA has launched a new guide to help IFAs work with personal injury lawyers and to address the issues surrounding large payments in serious cases.
With advisers now able to take part in the process where personal injury claims are awarded, it is essential they comprehend the key legal issues, according to SIFA ( Solicitors Independent Financial Advice).
Working with Personal Injury Lawyers is available for free to members of the organisation and provides an introduction to the system.
Claims for millions of pounds are now routinely awarded, which means it is important for advisers to understand how different payment strategies will affect any investment plans, according to SIFA managing director Ian Muirhead.
For example, through periodical payments, the claimant would not have immediate access to all the capital awarded, although they would be given a steady stream of income.
Any claimants looking at settling out of court may also need to know what sort of cash flow a defendant's offer will provide over the long term.
The guide has been written by Dave Robinson, director of Albert Goodman Chartered Financial Planners and a SIFA member.
He writes: "Many clients will not have any experience of managing large amounts of money and will be very worried about having to do so.
"An award of damages can only provide financial compensation but if it is structured and managed carefully it can at least relieve the recipient of the stress of financial worries."
The issue of state benefits is detailed in the guide, while it also explores personal injury trusts and explains some of the landmark cases in the area.
The personal injury handbook complements SIFA's existing publications: Trustinvest Pensions & Divorce, Financial Solutions for Estate Planning, the SOLLA Later Life Handbook and Marketing to Solicitors."
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