If by chance you have already been entangled in a lawsuit, either as a defendant or a plaintiff, you may have already come across with the words structured settlement. If in case not, then it is important that you have an understanding of what exactly is it.
A structured settlement is very common in court cases which entail huge amounts of money and particularly when the court of law rules in the favor of the claimant that then translates to financial reparation for the claimant.
If you happen to be the defendant, on the other hand, by way of your attorney or a financial planner you may suggest to the claimant to agree that the claims be paid in regular installments.
Such form of settlement or arrangement will take that both of the involved parties are in agreement and, in majority of cases, annuities need to be procured as a means of ensuring the payment for the entire amount of cash in the future. Structured settlements actually have a number of associated benefits.
Among the more noteworthy benefits that the plaintiff or claimant receives is that of having to avoid getting taxed by considerably minimizing the tax imposed on the annuity. As a matter of fact, there are some cases wherein the plaintiff could wind up not getting taxed on their money at all.
As the claimant, you have a guaranteed cash reserve that you can make use of to cater to you future requirements as compared to getting a large sum of money at an instant and may possibly spend them all in just a year or two. A structured settlement is perfect for you, if it happens that you are the type of individual who is unaware of how to invest or save money.
For the case of the disabled claimant, such type of payment scheme can dearly help in trust account in order to accommodate his/her needs. As for the case of an injured party, structured settlements can render that much sought after financial assistance, more particularly in terms of paying for health facilities as well as services like therapies, medications, and medical equipments.
It is very important to note that prior to entering into structured settlements, you should seek the advice of a reputable lawyer or a seasoned financial consultant, who has particular knowledge of the payment plan, so you are assured that you get the most out of it.