What are structured settlements and how to get them?

What are Structured Settlements?

When law suits are settled, damages may be awarded in a lump sum, or a series of payments. A settlement which is awarded in a series of payments over time is called a structured settlement. Structured settlements are generally created by using a third party intermediary to provide the financing.

How to Purchase Structured Settlements?

State and federal law may restrict the sale of structured settlements, and there are many legal complications that can arise.

Since you’ll be exchanging cash for the right to receive future payments, you’ll want to make sure that you are protected.

1. Work with an established broker.

2. Look for a structured settlement financing company who is a member of the National Structured Settlements Trade Association who also places settlements with private investors.

3. Get multiple quotes to ensure you get the best deal.

4. Retain an attorney to review the agreement to ensure your interests are protected.

Compete Detailed Instruction And Tips About Purchase Structured Settlements Links can be found on the side bars and at the bottom of this page.

Benefits of a Structured Settlements

One significant advantage of a structured settlement is tax avoidance. With appropriate set-up, a structured settlement may significantly reduce the plaintiff’s tax obligations as a result of the settlement, and may in some cases be tax-free.

A structured settlement can protect a plaintiff from having settlement funds dissipated, when they are necessary to pay for future care or needs. Sometimes a structured settlement can help protect a plaintiff from himself – some people simply aren’t good with money, or can’t say no to relatives who want to “share the wealth”, and even a large settlement can be rapidly exhausted.

Minors may benefit from a structured settlement as well, such as a settlement which provides for certain costs during their youth, an additional disbursement to pay for college or other educational expenses, and then one or more disbursements in adulthood.

An injured person who has long-term special needs may benefit from having periodic lump sums with which to purchase medical equipment or modified vehicles. In some situations, it will be better for a severely disabled plaintiff to set up a special needs trust, rather than entering into a lump sum or structured settlement.

Any plaintiff who is receiving, or expects to receive, Medicaid or other public assistance, or the guardian or conservator entering into a settlement on behalf of a disabled ward, should consult with a disabilities financial planner about their situation before choosing any particular settlement option or structure.