Considering Structured Settlements

You will be given money for compensation if you won a lawsuit against any individual or business. In this case, you can choose from two options as to how you want to receive this monetary compensation. You will have the option to get the money for compensation in one large sum. The other option is to go with structured settlements.

Structured settlements will provide the other party to pay you over the span of several years. These payments can even last for the rest of the plaintiff's life. If you suffered catastrophic injury cases, this form of settlement would be the most advantageous for you. To help you decide whether you should go for a structured settlement or not, here are a couple of its advantages and disadvantages.

To kick things up, here are the benefits. Tax benefits are given to the plaintiffs who choose to go with structured settlements. As long as the plaintiff has no control over the funds, they will remain tax-free. In the long run, you will benefit more from structured settlements since you can't spend the full amount of the monetary compensation in just a few months or years. If the other party caused you disability, this form of settlement would be much better for you.

You can also rest assured that the funds that you will receive through structured settlements will be managed by professionals. Since you will be fully in charge of the funds in lump-sum agreements, it would be likely for you to spend them all in just one go. The annuity that you will receive as a plaintiff can be changed according to your needs in the future. The plaintiff's annuity is also covered by insurance laws in many states today.

As for the disadvantages, there are only a few to mention. If given too much control over the annuities, the IRS might decide to forfeit your tax benefits as a plaintiff. It is also possible for economic reasons to affect the amount of money that you will receive in annuity payments. In rare cases, annuities are handled by brokers who cannot provide you with complete protection for insolvency.

The money that you will receive in lump-sum agreements are usually higher compared to that of structured payments. People who are thinking about long term issues and concerns are better off going to sell a structured settlement rather than lump-sum payments. Whether going with structured settlements is the right option or not depends on your situation. When making the final decision, make it a point to consider all aspects especially possible long term concerns. Do not make any final decisions on your settlement before you consider all aspects of your current situation and long term concerns.

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