When are Structured Settlements Appropiate 1-800-JUSTICE®

This video explains the concept of structured annuities in the context of personal injury cases involving parties under disability. It clarifies that a party under disability refers to minors or individuals with mental or cognitive incapacity, rather than those receiving disability benefits. The assessment of an individual's capacity is conducted by a designated capacity assessor, who evaluates various levels of capacity, particularly concerning property. Judges play a crucial role in determining capacity, especially regarding financial settlements from lawsuits or claims. If a party lacks capacity, any settlement must be approved by a judge to be legally binding. For more information, contact “Preszler Injury Lawyers” at “1-800-JUSTICE”.

Structured annuities are often reserved for individuals who settle their cases, but they frequently involve parties under disability. This term is used under the rules of civil procedure to define who qualifies as a party under disability. It does not refer to someone who is receiving Ontario Disability or Canada Pension Plan disability benefits. Instead, it is a defined term that indicates an incapable person or a party under disability is either a minor, defined as someone under the age of 18, or a person who has a mental incapacity or cognitive incapacity.

How is a person determined to be incapable? Under the Substitute Decisions Act, a capacity assessor, referred to as a designated capacity assessor, will perform an assessment to determine whether or not an individual has capacity. There are different levels of capacity: capacity to grant a power of attorney, capacity with respect to personal care—which involves the ability to make decisions about daily living activities—and capacity concerning property.

Judges are particularly interested in the determination of capacity with respect to property, as this pertains to the financial settlement that arises from a lawsuit, an accident benefit claim, or a long-term disability claim. It is within this context that judges will intervene. It is also incumbent upon the lawyer to ensure that a person has capacity. If an individual does not have capacity, the only way a case can be settled in Ontario is if a judge approves it. If a judge does not approve a case involving a party under disability, or a person who is mentally incapable or a minor, it is not considered a legal settlement, and that settlement can be set aside.