What Is A Structured Settlement Payment

Also the payments from factored settlements are tax free.

What is a structured settlement payment.

Structured settlement payment rights can be bought in the secondary and tertiary settlement market. If you re on the winning side of a lawsuit there are different ways to receive the money you re awarded. Factored settlement payments are the result of obligations to payout sporadic payments under settlement terms. A child recipient may receive regular payments while they are a minor and then one large lump sum to pay for their college tuition when they graduate from high school.

It s another often smarter way to receive a court award for damages other than a lump sum payment. A structured settlement is a stream of payments to a person who won or settled a lawsuit. Whether you should opt for a lump sum payment or a structured settlement will depend on many factors including your tax liability how you plan to spend the money and whether you need assistance in managing a large sum of money. Structured settlement brokers a special type of insurance agent consult as a case approaches settlement.

The rates are affordable and combined with the need time continuum. A structured settlement is a settlement derived and negotiated from the result of a person or company winning a civil case. This series of payments is called a structured settlement. These resolutions differ from lump sum settlements because of the way the money is paid over time.

One option is a structured settlement which includes periodic payments over time. The defendant funds the settlement. A structured settlement typically includes a lump sum of cash upfront one time to cover immediate expenses followed by guaranteed periodic payments tax free customized to meet the needs of the settlement winner. For more about brokers see national structured settlements trade association.

A structured settlement is a negotiated financial or insurance arrangement through which a claimant agrees to resolve a personal injury tort claim by receiving part or all of a settlement in the form of periodic payments on an agreed schedule rather than as a lump sum.