Information For structured settlement

Hello all Today we'll talk about

Information

For structured settlement

1. What Is A Structured Settlement?

Structured settlements are an innovative method of compensating injury victims. Encouraged by the U.S.Congress since 1982, a structured
settlement is a voluntary agreement between the injury victim and the defendant or insurer.

Under a structured settlement, an injury victim doesn't receive compensation for his or her injuries in one lump sum. Rather, in addition to a lump sum immediately upon settlement to cover current obligations or fees, he or she will receive a stream of future tax-free payments tailored to meet medical expenses and basic living needs.

A structured settlement may be agreed to privately (for example, in a pre-trial settlement) or it may be required by a court order, which often happens in judgments involving minors.

annuity structured settlement

2. Why Were Structured Settlements Created?

Historically, damages paid because of an injury lawsuit came in the form of a single lump sum. This kind of payment, especially in catastrophic injury cases, often placed the injury victim (or family) in a difficult financial position: With the victim focused on adapting to a new lifestyle, there often was not the time or expertise to manage large sums of money.

This kind of scenario sets up the probability of dissipation. A person who dissipating funds intended to cover a lifetime of medical care runs the risk of losing medical care and independence. They also risk winding up on public assistance at a significant cost to the taxpayer.

In 1982, a bipartisan coalition of legislators in Congress came together to pass legislation that amended the federal tax code. Their action, The Periodic Payment Settlement Act of 1982 (Public Law 97-473), formally recognized and encouraged the use of structured settlements in physical injury cases.

3. I'm involved in a personal injury lawsuit currently. Why should I consider Structured Settlement?

The payments from a structured settlement can:

• be arranged to be invested on your behalf and distributed tax-free
• Meet long-term rehabilitation or permanent care facility expenses;
• Provide for the future costs of college funds, retirement, down payment on a home, or mortgage payment; and
• Relieve the burden of managing the money to meet your needs
• Provide long-term financial security at NO COST!