Settlement Offer Letter to Client with Net Estimate and Decision Signature Block
Drafts the letter that puts a settlement offer in front of the client for decision: the offer and its terms, a net-to-client estimate with the arithmetic shown, the risks of accepting and of rejecting as you describe them, and a signature block recording the choice.
The Prompt
Variables (8)
| Variable | Description | Example |
|---|---|---|
| {{client_name}} | Client Name | Maria Gonzalez |
| {{offer_amount}} | Offer Amount (USD) | 68000 |
| {{response_deadline}} | Response Deadline Set by the Other Side | 2026-10-23 |
| {{offer_terms}} | Offer Terms and Conditions | Adjuster's email of 10/01/2026: $68,000 for a full release of the insured and the insurer, claimant responsible for all liens, payment within 30 days of the signed release. |
| {{fee_cost_lien_figures}} | Fee, Cost and Lien Figures | Fee: one-third of gross per fee agreement. Costs to date: $2,318.40 (final). Summit Health Plan lien: $9,480.00 claimed, reduction requested, estimated $6,300 to $9,480. Valley Orthopedics balance: $2,150.00 (final). |
| {{risks_accepting}} | Attorney's Assessment: Risks of Accepting | Claim ends permanently, including for future treatment. Surgeon has said a second procedure is possible; its cost would not be recoverable. Lien amount not yet final. |
| {{risks_rejecting}} | Attorney's Assessment: Risks of Rejecting | Offer may be withdrawn. Suit would be needed; added costs for experts and depositions come out of any recovery. Defense will argue the eight-week treatment gap. A jury could award less, or nothing. |
| {{next_steps}} | Next Steps if Accepted and if Rejected | If accepted: release signed, payment expected within about 30 days, liens resolved, then disbursement. If rejected: counteroffer if you authorize one, otherwise we prepare to file suit. |
Expected Output
Part 1, attorney-only notes (unclear offer terms, net-to-client arithmetic with any figure that does not reconcile, conflicts between sources, unsupported statements declined, declined requests, Missing information including a thin risk list); Part 2, a clean neutral client letter with headed sections (the offer, what you would receive with the calculation, if you accept, if you reject, what happens next, your decision) ending with the decision and signature block; and a closing Verification list.
Usage Notes
Use each time an offer must be put to the client for decision. Supply the offer exactly as received, your fee, cost and lien figures marked final or estimated, and your own assessment of the risks on each side in comparable detail. Part 1 is for the file; only Part 2 is meant for the client, and any line reading "TO BE COMPLETED BY ATTORNEY" must be filled in before it goes out. Failure mode to watch for: one side of the risk comparison written more forcefully than the other, an estimated lien presented as a fixed net amount, or a deadline rule asserted by the adjuster passed to the client as law; read the two risk sections side by side, keep the net figure as a range until the liens are final, and verify any authority the other side cites. Read the document part line by line before it leaves the office: in testing, a small model sometimes left an internal remark, a comparison with the file or an unresolved point inside the document despite the instructions. Not legal advice. The attorney remains responsible for verifying every fact, figure and authority before use.
Double-check before use
- Read the client letter for any comparison between your figures and the recomputed ones, and for parenthetical remarks. In testing, these were not always removed.
These are the places where this prompt was seen to slip when tested on sample cases with a small AI model.
Originally featured in: AI for Personal Injury Lawyers: Prompts for Demand Letters, Medical Summaries & Depositions
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* These prompts are drafting and analysis aids for licensed attorneys. They are not legal advice and do not replace professional judgment. AI output can contain errors, including invented citations and incorrect deadlines: verify every fact, figure, authority and deadline against primary sources before relying on it. Rules vary by jurisdiction, and you remain responsible for the final work product.