The Definition Of A Structured Settlement
Have you been offered a structured settlement? If this is something that has been offered to you, you are going to want to take a closer look at a structured settlement definition.
You will want to make sure that this type of settlement is something that you will be happy with.
What Is A Structured Settlement?
When you receive a structured settlement, you agree to receive a legal settlement in periodic payments instead of receiving a lump sum. These types of settlements are offered for a number of reasons.
In some cases, the defendant offers structured payments. This can make it much easier if the defendant owes the plaintiff a very large sum.
In other situations, the plaintiff requests lump payments. A lot of people make this choice because ongoing payments are the best option for them financially.
Who Gives Out Structured Settlements?
In many cases, structured settlements are given out when a person seeks a civil judgement against someone. Settlements may be given out because an injury, or because someone was poorly treated.
However, these settlements can also be given out by insurance companies. In some cases, insurance companies will ask to resolve a tort claim through structured payments.
Are Structured Settlements A Good Option?
When people are offered structured settlements, they often feel uncomfortable. A lot of people would prefer to receive a large payment. Accepting a structured settlement might seem like a compromise.
The truth is that these arrangements offer a lot of advantages. If you won’t have major expenses that you need to cover, then receiving money regularly can be very nice. When your income is paid periodically, you will be able to pay less in taxes. In addition, it is less likely that you will burn through the cash that you are being awarded.
If you are not sure about what you should do, you may want to ask your lawyer to give you some advice. They will be able to tell you whether or not they recommend taking the settlement.
You Can Sell Structured Settlements
If you decide that you want to accept an annuity settlement, you should know that you don’t have to be locked into this settlement forever. You will have the option of selling your settlement in the future.
Brokers will purchase structured settlements from the people that have been awarded them. While you may not receive as much money as you would otherwise, it is very nice to have this option.
When you accept an annuity allowance, you can always receive a lump some later on. These settlements actually offer a lot of flexibility.
Now that you understand the definition of a structured settlement, it will be easier for you decide whether or not periodic payments are the right choice for you.
If you are entitled to money, you should make sure you receive that money in a way that makes sense to you. No matter what choice you make, you should feel confident about your final decision.