Structure Settlement

The company is a member of the national association of settlement purchasers.

Structure settlement. A structured settlement is a negotiated financial or insurance arrangement through which a claimant agrees to resolve a personal injury tort claim by receiving part or all of a settlement in the form of periodic payments on an agreed schedule rather than as a lump sum as part of the negotiations a structured settlement may be offered by the defendant or requested by the plaintiff. The defendant pays the negotiated settlement to the plaintiff. Congress passed the periodic payment settlement act in 1982 which streamlined the use of structured settlements in personal injury lawsuits. Your goals for the money should inform your decision.

It s nice to know that in a time of doubt a structured settlement brings some peace to your. Becoming injured can turn your life upside down. A structured settlement may help parties who are far apart in their settlement negotiations to reach an agreement acceptable to both the plaintiff and the defendant. A structured settlement pays out money owed from a legal settlement through periodic payments in the form of a financial product known as an annuity.

Structured settlements offer a variety of benefits not the least of which is the guarantee of future income. Injured people injury settlements can bring forth a whirlwind of emotions. Consider the tax implications and your need for liquidity. A structured settlement is a type of income annuity that is derived and negotiated from the result of a person or company winning a civil case.

Cons certain parts of a settlement whether a lump sum payment or a structured settlement can be taxed including punitive damages some attorney s fees purely emotional damages not stemming from physical injury and more. As a result of the injury your future can become uncertain. The legislation shielded structured settlement payments from federal state and local income taxes. You should think in terms of winning a personal injury lawsuit due to a car crash.

It s important to weigh the pros and cons of accepting a structured settlement as they relate to your unique circumstances. However many legal settlements offer a lump sum payment option which provides a one time sum of money.