A structured settlement involves a financial or insurance arrangement which includes a periodic stream of payments, that a claimant or plaintiff accepts in order to resolve a personal injury claim or other legal case. They were first utilized in Canada and the United States during the 1970s as an alternative to lump sum payments and are now part of the statutory tort law of several common law countries.
A structured settlement is a deferred payment method for compensating injury victims, and is a voluntary agreement between the injury victim ( plaintiff ) and the defendant. The plaintiff will receive the monetary payout over the course of a number of years through this deferred payment agreement. Under a structured settlement, an injury victim does not receive compensation for their injuries in one lump sum, but rather, they will receive a stream of tax free payments designed to meet future expenses and living needs. This type of compensation method is becoming more popular in a wide variety of legal cases.
The benefits of a structured settlement over a lump-sum payment include the security of a guaranteed long-term income with deferred payments that are exempt from income taxes. The federal government encourages the use of structured settlements in personal injury cases. Structured settlements also attract support from plaintiff attorneys, state attorneys general, legislators, consumer and disability advocates.
Structured settlements can be ideally suited for cases with:
Persons with temporary or permanent disabilities
Guardianship cases that may involve minors
Workers compensation cases
Wrongful death cases
Severe injury
Want to Sell Your Structured Settlement?
Not everyone benefits from a long-term payment situation and some may want or need a lump sum instead. The owner of a structured settlement, such as lottery winners, medical, insurance, accident and lawsuit settlement owners, can often sell their rights to the deferred payment stream, in exchange for a one time lump sum payment from a variety of financial institutions. All situations are different, and as with any legal issue, you should always consult your attorney.
FSBO the Secret Of after Settlement Escrow To Solve ProblemsMost FSBOs (people who are selling their own homes) are aware of the conventional use of escrow. In this article, we look at ways to use escrow to solve problems.
Escrow
Escrow means different things in different parts of the country. In California its part and parcel of the settlement process. In Virginia, while theres no formal escrow before settlement, the settlement agent gathers title information, draws or has a deed drawn, coordinates with the lender, receives various inspection reports and in general conducts an informal escrow in the days before settlement. The difference is that, ..
ABOUT THE AUTHOR
Greg Smith is the publisher of the informational web site on Structured Settlements at http://www.settlements-i.com. Visit his web site for the latest on settlements of all types.
Why Would A Company Want To Buy My Structured Settlement? There are several structured settlement companies and corporates that purchase structured settlements and offer a lump sum in exchange. The simple reason for a company to purchase a structured settlement is that it represents a good investment deal. Structured settlement payments from lottery winnings, royalty payments, and insurance annuities are income-tax free and are secured by federal and state regulations. Companies that purchase structured settlements are thus assured of a steady stream of income over a period of time which allows them to execute their growth plans in an assured manner. ..
Greg SmithStructured Settlement or a One-Time Lump Sum Payment?
