Creating a Long-Term Plan for Financial Security with Your VCF Settlement

Securing an award from the September 11th Victim Compensation Fund (VCF) is often an important step in managing the physical, emotional, and financial hardships of 9/11-related health conditions. Receiving a VCF award, however, doesn't mark the end of the road. Instead, it provides a stepping stone to creating long-term financial stability and security.

Taking that step – from stepping stone to long-term financial stability and security – doesn’t just magically happen, but requires a thoughtful approach and long-term plan. This comprehensive guide will walk you through the essentials of building a robust and enduring financial plan with your VCF settlement.

The Basics of Your VCF Award

Administered by the Department of Justice, the VCF was established with a distinct mission to provide financial compensation to individuals and families grappling with health conditions or dealing with the loss of loved ones as a direct consequence of the September 11th terrorist attacks. The Special Master, appointed by the Department of Justice, is tasked with supervising the claim review process, ensuring that each claimant is allocated a fair and suitable VCF award, tailored to their unique set of circumstances.

The calculation of a VCF award takes into consideration several factors and each award is calculated individually. The final award is calculated using the following formula: 

Non-Economic Loss + Economic Loss - Collateral Offsets 

The non-economic losses account for aspects such as physical and emotional pain and suffering, inconvenience, and a deterioration in the quality or enjoyment of life. Non-economic damages are determined based on the severity of physical harm, according to statutory caps determined by the VCF Act. After a careful and thorough assessment of all aspects of the case, the VCF issues an award letter that outlines the claimant’s award details.  

Economic losses include loss of earnings or other benefits related to employment, past 9/11-related out-of-pocket medical expenses, and other 9/11-related economic losses. In a deceased claim, these same losses may also be awarded plus the cost to replace household services previously provided by the deceased victim, an award for wrongful death (a "deceased” award amount), awards for a surviving spouse as well as any dependents, and expenses associated with a burial or memorial service in the case of a deceased victim. These are calculated individually based on individual circumstances and can vary widely in the proof that is provided. 

Collateral offsets are compensation from other sources that you received or became entitled to receive as a result of your 9/11 injury, such as payments received from pension funds, life insurance, the Social Security Administration (SSA), Workers’ Compensation, PSOB benefits, settlements from 9/11-related lawsuits, and other amounts received for 9/11-related damages or losses. These must all be subtracted from your VCF non-economic and economic loss awards. 

Identifying Your Financial Goals

Managing a VCF award effectively begins with defining your financial goals. These objectives could range from a spectrum of short-term and long-term commitments – paying off debt, purchasing a home, saving for your children's education, or planning for a comfortable retirement. Begin with a detailed list of your goals, and then rank them in order of importance. You may want to identify both long-term and short-term goals for each of your financial goals. When these goals are clearly identified, calculated and articulated, you can align your financial plan with them, building a road map that leads to a sustainable financial future.

Analyze Your Debt

Debt can pose a significant roadblock on your path to achieving long-term financial stability. Analyzing the details of your debt is an important aspect of managing your VCF award and planning for long-term financial security. 

To get a complete overview of your debt situation, start by making a list of your debts, including details such as total amounts due, annual percentage rates, and payment plans. If you're grappling with existing debts, it might be worthwhile to consider allocating a section of your VCF award towards resolving these obligations. This could involve paying off mortgages, credit card bills, student loans, or any other types of outstanding debt. Placing a higher priority on debts with high interest rates can save you a substantial amount of money over time, thus creating a solid foundation for your financial well-being. 

Focus On Saving

Once you have addressed your debts, the next essential step is creating a plan for savings. Consider setting aside a percentage of your VCF award for future needs and unforeseen emergencies. Cultivating a habit of saving can significantly assist you in meeting your financial goals and insulating you from unforeseen expenses. Furthermore, it offers a sense of peace and security, knowing that you and your family have a financial safety net in place.

Work With Trusted Advisors

Financial planning can be a labyrinth of complexities, particularly when dealing with a sizable sum like a VCF award. Collaborating with trusted advisors – such as financial planners, tax consultants, and estate planning professionals – can help you make well-informed decisions. These advisors bring their expertise to the table, offering advice specifically tailored to your individual circumstances and financial objectives. They can guide you through tax considerations related to your VCF award, provide long-term investment strategies, help with estate planning, and much more.

Timeline for Receiving Your VCF Award

The timeline to receive your VCF award is not set in stone – each claim review process is distinct, and several factors can influence how quickly you receive your compensation. The process typically involves submitting your claim, undergoing a review and evaluation by the Special Master, and finally, the issuance of the award letter. Delays may arise due to incomplete documentation or complexities that necessitate a more detailed review. However, the VCF’s current average time to decide a claim – from the time your fully completed claim is submitted until the time that you receive an award letter – is approximately 18 months. You can expect to receive payment of your award within a few weeks after you receive your loss calculation award letter.

Consult a Trusted VCF Attorney

Navigating the complex processes and potential issues that surround VCF claims can be challenging without experienced guidance. Consulting a trusted VCF attorney can significantly enhance your ability to secure the compensation you rightfully deserve. At Hansen & Rosasco, LLP, we possess a deep understanding of the VCF claims process, and we have successfully represented thousands of 9/11 victims, ensuring they secure the maximum VCF award. Our experienced attorneys can expertly guide you through each step, offering informed advice and thoughtful support along the way. We also ensure that your claim is complete, avoiding unnecessary denials or delays. 

Receiving your VCF award is just the beginning of a longer journey towards establishing long-term financial security. By conscientiously following the steps outlined above, you can ensure that your VCF settlement not only addresses immediate needs but also paves the way for a stable financial future. Remember, the financial planning process after receiving a VCF award isn't a sprint — it's a marathon. Our dedicated team is here to support you at every stage, ensuring that each stride brings you closer to achieving your financial goals. Contact us today to learn how we can help.