| Since you haven’t had a reply to your post as yet, I’ll give it a stab. First, I want to address the $100,000 in medical bills that she will have to repay. More than likely the insurance company that has paid her claims, or the providers of service that are still waiting to get paid, have placed liens against your step-moms settlement. Having said that, her attorney is obligated to satisfy those liens. Nevertheless, the attorney should attempt to negotiate a reduction in the amount of money she will have to pay back. A 25% to 33% reduction may be easily negotiated. This may in fact net your step-mom an additional $25k to $33k.
As for the $100,000 that will be put in an annuity, this is referred to as a structured settlement. In all likelihood Coca-Cola will purchase an annuity through an insurance company. That insurance company will guarantee that you step-mom receives $1,000 a month (or whatever dollar amount) for 20 years, life, or some other time period. Many personal injury attorneys don’t like structured settlements. This is mainly because Coca-Cola is free to shop around and buy the annuity from whomever they wish unless your step-mom objects. Additionally, it may in fact not cost them $100,000 to buy what they are attempting to sell to your step-mom as a $100,000 annuity. You see, the defense is going to try and save money in any way they can. If she and her attorney are not careful, then a structured settlement may be one way of them doing this.
Structured settlements are not uncommon, but they are usually only used for an individual that will have a permanent disabling injury that will prevent them from earning an equitable living, they will have large future medical expenses, or there is a fear that the injured party or their family will not be competent to spend or invest a large cash settlement on their own.
Whether or not she should accept a structured settlement as part of her settlement depends upon many factors of which only she and her attorney are fully aware. | 
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