Structured Settlements

Structured Settlements

What is a Structured Settlement?
Structured settlements are a method of compensating injury victims. A structured settlement is a voluntary agreement reached between two parties, typically a plaintiff and a defendant, under which the injured person is compensated for damages in the form of a stream of periodic cash payments purchased for the plaintiff on behalf of the defendant. Structured Settlements are a completely voluntary agreement between the injury victim and the defendant.

How are Structured Settlements paid?
Under a structured settlement agreement, an injury victim doesn't receive compensation for their injury in one lump sum. The victim receives a stream of tax-free payments tailored to meet future medical expenses and basic living needs.

Why use a Structured Settlement?
Often two parties can not agree on all the terms in a law suit, so a structured settlement arrangement allows one party to get their price, while the other gets their terms.

Who sets up a Structured Settlement?
A structured settlement may be agreed to privately, in mediation, in a pre-trial settlement or it may be required by a court order. Often an attorney draws up the necessary structured settlement paperwork.

How can I cash my Structured Settlement for a lump sum payment?
You can find brokers or companies to purchase and buy Structured Settlements.

Are there tax advantages to a Structured Settlement?
Structured settlements may also offer a tax advantage that becomes part of the benefit in using a fixed annuity as part of a structured settlement. The fixed annuity payments are income tax-free to the claimant and the liability can be removed from the defendant's books, in many cases.

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