Structured Settlements

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

How are Structured Settlements paid?
Under a structured settlement agreement, the injury victim does not receive compensation for their injury in one lump sum. Instead, the victim will receive a stream of tax-free payments specifically tailored to meet future medical expenses and basic living needs.

Why use a Structured Settlement?
Often two parties cannot agree on all terms in a given law suit so a structured settlement arrangement is made.  A structured settlement is arranged to please both parties by allowing 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. An attorney typically draws up the necessary structured settlement paperwork required.

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

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