By Stewart Wrighter

Structured settlements are cash that is awarded to one party by the courts that will not be paid all at one time. The most common use of a structured settlement is to compensate an injury victim in a legal claim. The plaintiff and defendant agree to pay compensation over a certain period of time. This arrangement can be used with, or it to replace an immediate cash settlement all at once. It is often paid to major Life Insurance companies, who then pay the money to you in the form of an annuity.

This type of compensation has many benefits to the victim. First, these types of payments are exempt from Federal, state, and local taxation. It is like getting free money. It can be tailored to meet both current and future needs. For instance, it can be used immediately to meet past due bills and obligations, or to meet living expenses while recovering from the injury. However, it can also be set aside to provide for future needs, such as college tuition, retirement, or future surgeries. These payments are flexible and can be used to provide needed security in the future.


It is perfect for those who are no longer working, either because they are retired or who cannot work as a result of the injury. It is important to understand that you need a professional who is working for you, rather than the defendant if you are offered a structured settlement. Remember that the defendant’s attorney is loyal to the defendant and you need to consult a planner who is loyal to you and knows all of the possible solutions available to you in your particular situation. Obtaining the services of someone who is loyal to your interests is one of the most important steps that you need to take before accepting an agreement.

The first thing that you should do is to contact someone who specializes in this type of compensation before you undertake such an important decision. The professionals can help you get the best annuity rate and know the companies that will offer the best arrangement for you. These payments can be complicated and there are many options when it comes to the products offered by life insurance companies.

Structured settlements can be sold with the permission of the court at a later time if the needs of the recipient change. In most cases, if the need arises, then the recipient can file a motion to change the agreement. The court will also take into consideration the background of the buyer when a buyout is requested. A structured settlement is one of the most flexible ways to receive funds that are owed to you as result of a court decision. There are many things to consider and everyone’s situation is different. It is best to arrange a consultation with a professional to discuss your options for your future needs and help you avoid taxes. It is one of the most flexible options for receiving cash that is owed to you from an accident or injury and one of the best ways to secure your future.

About the Author: Stewart Wrighter recently researched a landmarkstructured settlement case for an article. He learned that structured settlements are the best alternative in some cases.


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