Dissipation Risk with Large Lump Sum Payments
Despite best intentions, lump sum payments are dissipated within a short time after the money is received by the claimant. It is believed that 90 percent of cash settlements are gone within five years. Tragically, when the money is intended to replace lost income for a disability or to care for a seriously injured or ill individual for a lifetime, that person may be left without the means of self-support or to receive appropriate care.
