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Informative Articles

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Structured Settlement: Deciding If This Is The Way To Go

Often, a structured settlement is one that offers the payment of funds owed in an agreed upon way. It works to allow individuals to receive payments of the money that is owed to them in such cases as a lottery winning or a personal injury lawsuit.

A structured settlement also allows for the company making payments to pay in payments rather than in a large, lump sum. To decide if a structured settlement is the right choice for you, consider these factors.

* In many cases, a structured settlement is one that will allow you to receive monthly payments as opposed to one large lump sum. It is often the case that a lump sum will be worth less than the payments could be over time. It is often the most beneficial in dollar amounts.

* Secondly, it has more tax advantages to it than that of a lump sum payment. It is often structured to include a lesser amount of money going to taxes.

* It is a good choice in circumstances where the individual is on disability, is incapable of work or has become incompetent. In these cases, it

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allows for monthly payments to allow care throughout the life time.

* In cases where a wrongful death has happened, it is necessary for the spouse and/or children to receive monthly payments to allow for compensation for wages.

* It is also a benefit in such cases where the money will be needed to make payments. For example, in the payments needed for mortgages and car loans.

A structured settlement allows for individuals to receive payments instead of receiving a lump sum. While a lump sum may allow for more right away, a structured settlement allows for continuous help throughout the course of the repayment terms.

Determine which is the right situation for you is something that you and your attorney will need to discuss further. Ask him what a structured settlement can do for you.
About the Author

Ken Austin is the webmaster at Structured Settlement Tips and Financial Resource Guide