Legal settlements are wonderful because they can take care of an accident victim, but sometimes they can be less wonderful than the recipient wants them to be. Structured settlements are settlements that the payer does not pay using the normal method of payment. For some reason, the judge in the case allows the payer to issue the structured settlements in payments instead of a lump sum. Such payments are usually accommodating for the payer but not accommodating to the person who is supposed to be receiving the payments. The following is some additional information about structured settlements.
Who Gets Structured Settlements?
Accident victims are usually the recipient of structured settlements. They receive such settlements because the offending party’s lawyers asks if that person can pay in installments instead of one lump sum.
Structured settlements can come in many forms. They can come in the form of a once-per-year payment. They can come as monthly payments. They can come in quarterly payments. The specifics of each structured settlement arrangement is handled by the lawyers after the judge decides that the defendant does indeed have to pay the victim.
Benefits of Structured Settlements
Structured settlements do benefit some people as they have some valid positive aspects. One reason that a structured settlement may work for someone is that it provides that person with a solid source of income. Another benefit of structured settlements is that they are tax-free payments. That should provide a recipient with some relief about receiving these monies.
Disadvantages of Structured Settlements
The biggest disadvantage of getting structured settlements is that they they may not provide the recipient with enough money to take care of his or her bills each month. An injured person may not be able to stay above the after a severe accident either. An injured person can’t simply just go back to work just because the bills are overdue, so there is another problem. It is possible for the structured settlement payments to be so far apart that they hinder the recipient of them quite a bit. Another disadvantage of structured settlements is that they may not provide enough coverage for an emergency should one arise. The structured settlement recipient may not be able to take a trip or make a large purchase.
What One Can Do About a Structured Settlement
An accident victim can take some steps to change the way that he or she receives money. This person can sell the structured settlement to a company that buys them. Such companies provide their clients with quick access to the lump sum funds that they truly want. The percentages vary, so it is important for a prospect to conduct a great amount of research before selling a settlement. The firm that the person chooses should be longstanding and have many positive reviews. The process usually involves a consultation and a discussion with the person’s lawyer to verify that the funds are promised.