Structured Settlements Authority

How to Get Cash for a Structured Settlement

When to Choose a Structured Settlement Annuity

In a settlement for compensation of a personal injury the defendant generally provides the plaintiff a lump sum payment, however, it is also possible for the settlement amount to be provided by the same person as a series of annuity payments. A structured settlement is simply a series of annuity payments or unequal lump sums paid in exchange for the settlement of a claim or dispute.

The payment options in a structured settlement are extremely varied and an individual should focus on their present and future needs, and then customize a series of future payments to meet them. Having a series of regular monthly payments is particularly useful when an injury has occurred that will require the victim to receive ongoing treatment or have a replacement income. Future payments can be scheduled to provide for medical bills as well as cost of living expenses.

Many people choose structured agreements simply because they do not want to have to manage a lump sum payment. They may not feel adequately trained to manage such a large sum wisely or effectively. When structured settlement annuity payments are agreed to, there is the added bonus of knowing you will receive a series of guaranteed payments that will ensure that your needs are met, on a monthly basis.

Structured settlement annuity payments are received as part of a compensation agreement for an injury, are received by the claimant on a tax free basis. Also the interest or any appreciation on the structured annuity will also be received free of taxation.

Legal Aspects of Getting Cash for a Structured Settlement