If you have had a personal injury case decided in your favor, you may receive what is termed a structural settlement. This is a settlement for personal injury damages that isn't a lump sum payment but rather a series of payments over time.
If you are injured and win your case for damages, you may be awarded a structured settlement rather than a lump sum payment. Lump sum payments were quite common in the past but structured settlements are gaining in popularity.
It works like this. When you are injured and you press a lawsuit against the other party, the other party is found liable and you are awarded damages. The settlement damages are then scheduled for a payout over time. It is like you are a creditor, and the liable party has to make payments on what they owe you, although they do not pay interest on this. It simply breaks down the amount owed into regular payments.
The period of time for a structural settlement can vary. Generally payments are monthly, and are paid out over years. Depending on the monthly sum and the total award amount, the payout term will be shorter or longer. If you have a settlement that is very large, it may pay out over decades even.
When you get a structured settlement, it has some benefits for both sides (liable and injured parties). The injured party is assured income over time and for that period at least has a steadier financial outlook.
Part of the benefit of this is that the injured person will have an income to cover any unforeseen issues that are the result of the injury. This is important. It is possible that the effects of the injury can be lasting.
On the other hand, the liable party also benefits. The benefit there is in terms of taxes that are to be paid. The tax burden due on this payout will also be paid in installments this way, instead of being due all at once.
When you have a personal injury case, a structured settlement may be your best option. It helps to know how these work. Such a settlement can ensure you have income over a long period of time, which can really be a major plus.
If you are injured and win your case for damages, you may be awarded a structured settlement rather than a lump sum payment. Lump sum payments were quite common in the past but structured settlements are gaining in popularity.
It works like this. When you are injured and you press a lawsuit against the other party, the other party is found liable and you are awarded damages. The settlement damages are then scheduled for a payout over time. It is like you are a creditor, and the liable party has to make payments on what they owe you, although they do not pay interest on this. It simply breaks down the amount owed into regular payments.
The period of time for a structural settlement can vary. Generally payments are monthly, and are paid out over years. Depending on the monthly sum and the total award amount, the payout term will be shorter or longer. If you have a settlement that is very large, it may pay out over decades even.
When you get a structured settlement, it has some benefits for both sides (liable and injured parties). The injured party is assured income over time and for that period at least has a steadier financial outlook.
Part of the benefit of this is that the injured person will have an income to cover any unforeseen issues that are the result of the injury. This is important. It is possible that the effects of the injury can be lasting.
On the other hand, the liable party also benefits. The benefit there is in terms of taxes that are to be paid. The tax burden due on this payout will also be paid in installments this way, instead of being due all at once.
When you have a personal injury case, a structured settlement may be your best option. It helps to know how these work. Such a settlement can ensure you have income over a long period of time, which can really be a major plus.
About the Author:
Aside from settlements, the writer also frequently shares knowledge regarding buying individual health insurance and dental iv sedation.
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