Structured Settlements come with a lot of benefits. When you are in a Structured Settlement, you don’t have to pay taxes. This settlement is so appropriate and nicely set up, it can reduce the plaintiff’s tax obligations and is free of taxes.
Structured Settlement
A Structured Settlement is one of the convenient way to preserve the plaintiff’s settlement funds, so that he can make the payments easily in future. In many cases, the plaintiff is able to limit his use of money. Many people are not good in managing their money. For such people, a large settlement will immediately get wasted and disappear.
Structured Settlement is beneficial for the minors as they can provide the payments through their lifetime – personal costs during their adolescence, additional disbursements for college and other academic expenses, and other disbursements during adulthood.
Structured Settlements are very beneficial for those people who get injured and need long term special treatments and services. With the help of this lump sum amount, he gets the financial capability to purchase medicines, medical equipments, and take care of other necessary expenses.
structured-settlement
As you can see there are many advantages of structured settlements, it has some disadvantages as well. Some people feel that they have very limited money left after doing the structured settlement. They may want to buy a new car, get a loan to buy a home, or pay for other expensive items and services, but it sounds to be impossible with the structured settlements. When they are in this agreement, they are not allowed to borrow money from the lenders. So for some people, accepting a lump sum settlement sounds to be a better deal as they will invest it and plan for their future.
Helpful Resources:
http://en.wikipedia.org/wiki/Structured_settlement
http://www.irs.gov/businesses/small/article/0,,id=185990,00.html
This entry was posted on Monday, August 6th, 2012 at 3:04 pm and is filed under Structured Settlement. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.