What Is a Structured Settlement Payment?
Formally recognized by the federal government since 1983, structured settlement payments are specified in voluntary settlement agreements between and injury victims and defendant(s). A settlement payment or annuity comes as the result of a contract between a victim and a defendant whereby the injured victim receives a stream of tax-free settlement payments as an annuity tailored to meet their future needs instead of receiving one lump sum. Once a structured settlement payment agreement is reached, the plaintiff cannot make changes.
Structured settlements payments are used more frequently these days because they offer substantial benefits to all parties involved in the structured settlement agreement. Victims receive tax-free payments and defendants get an end to litigation as the result of reaching a structured settlement agreement.
Structured settlement payments are an innovative solution in that the amount of the settlement payments and the timetable for settlement payments is completely up to the negotiating parties. The personal injury victim gains the ability to custom tailor their structured settlements payments to meet their individual needs over an entire lifetime.
Structured Settlement Authority
Posted: June 18th, 2007 under Money, Structured Settlements.
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