When two parties agree to resolve a lawsuit with a structured settlement, they negotiate a cash amount payable by the defendant in exchange for the plaintiff to withdraw the lawsuit. This money is then distributed as a series of periodic payments, usually financed through an annuity. This process is complicated and results in a simpler and easier solution for the person who wins the case.
Structured settlements
are a form of annuity that distributes money based on a civil suit agreement. These payments are intended to provide a long-term revenue stream to meet the claimant's financial needs and may sometimes offer several payment options.The settlement is spread out into a series of periodic payments over an agreed period of time rather than a one-time payment in most cases. When you settle a portion of your personal injury claim with a structured settlement, you have funded known expenses such as rent and ongoing medical bills with reliable annuity payments.
Structured agreements
are tailored to meet the needs of the injured person or survivor. However, if the state takes the community property route, the state can divide the agreement regardless of whether it was received before or during the marriage. Congress has made structured settlement profits tax-free and these annuity contracts are protected by your state's guarantee association, in which life insurance companies must reserve a reserve with the SGA in case of company insolvency.Courts use structured settlements in many different types of cases to replace or supplement income that was lost through someone else's fault. If a court proceeding determines that the plaintiff is owed money, it may be considered a structured settlement rather than a lump sum. If you choose to receive payment for your lawsuit through a structured settlement, you can decide if you start receiving funds immediately or at a later date. If you agree to take your compensation as a structured settlement, rather than receiving a large amount from the plaintiff, you will receive periodic payments over a fixed number of years. We also offer financing agreement agreements to facilitate the resolution of agreements that are not based on physical injury or physical illness. If you need a copy of your settlement agreement, you will need to contact one of the parties involved in the settlement, your lawyer or the agent.
