100% dissabled cash out

[1171]

present value per my link above =$436,775.95
for maximum value you should have all your PD commuted.

[MrPain]

1171,what is the number or the link you checked above, and what does all my permanent disability commuted mean?

[1171]

Commutation:
court ordered conversion of future PD&LP payments to a lumpsum
http://www.leginfo.ca.gov/cgi-bin/displa...=5100-5106
the calculation is done by the court system. it''s a bit complex but the rules and tables for figuring it are here
http://www.dir.ca.gov/t8/10169.html


the commuted amount is not negotiated; it is a strict mathmatical computation based on an undisputed awarded PD finding. responsibility for future medical remains with the carrier. the carrier can file an objection to a request for commutation.


for figuring C&R buyout value:
http://www.comptools.com/present_value.htm
when handling large sums, you'll never get full future value in upfront cash; just like you'll never get a free loan without having to pay interest.

P.S. doing a C&R (lumpsum negotiated buyout of all benefits) allows an atty fee based on the entire settlement including medical. a commutation only allows extra atty fee just for the disability amount.
that's why attys push for total buyouts and rarely support open medical awards or commuted disability payments even though those might be "best" for the client.

[MrPain]

1171,Thank You for helping me,How do I figure out the interest rate to calculate the buyout value, I live in california.

[1171]

you have a complex, high cost case and I threw a lot at you all at once.
good job rolling with it.
this stuff only applies to california cases; each state is different.

use whatever interest rate you want. you always negotiate the bottom line take home amount-- not the details.
but now that you know a commutation is available at 3% you can decide how much you are willing to give up to do the C&R.
a more knowedgable claimant is a better negotiator.
be well.

[MrPain]

HI,1171 Thank you for your help, I did some calculations
and I came out with this number,I have a life expectancy of 37 years, and I am reciving
$490 weekly a little less because my lawyer takes his cut from $490. So my calculations $490 X 1,931 weeks= $946,253 in weekly pay outs if I live to be 75 years old. Present value @ 3% = $571,378 Right now they are offering me $400,000
Now I will counter there offer with $570,000 and they are still going to save money with the PD weekly payments and my medical when they switch over to a new medical plan with some of my money set aside,It's only fair that I ask for $570.000 right?
my lawyers cut will be about $55K I am not going to give my lawyer any details, I will only discuss my final take home money right 1171 ?
Thanks
MrPain

[1171]

Your lawyer should be negotiating and you should give him your thinking/details.
If you've already gotten some large advances those would reduce the pay out.
You will also be due COLAs and you should be talking to your lawyer about including them in the calculation.
Rather then countering with a bigger number you could ask them to calculate a commutation for a comparison figure --- that'll make them very uncomfortable.
Your figure is close-except for the cola.
I suspect they are using a 5% discount figure. Your paying an atty a lot of $$ he should be explaning his goal & strategy.
Hope this helps.

[MrPain]

1171,I have not recived any advances at all,so you are saying that i should ask them to calculate a commutation for a comparison figures,that would be the same calculation that i did @ 3% right, to compare with there numbers, The problem is my lawyer never tells me the details, but he is a good lawyer he is very Intimidating. what does colas mean?I have an appointment today with my lawyer
but i havent been able to get out of bed much this winter,I will call him and let him know what I think and what I want,what does colas mean?

[1171]

You should be sharing information with your atty and he should be letting you in on his negotiating strategy.
Rather then countering with a lower number I'd ask them to give you the commutation figure for comparison purposes. That will make them very uncomfortable.
I think you might be entitled to a COLA so the 490 will increase periodically. Discuss with your atty what figure is reasonable and can get done--they're getting big $$ to do this.