| Are you a victim of malpractice or personal injury? If | | | | other large ticket items, if they are not allowed to |
| you win a large case, you may have the option of | | | | borrow against future payments. In addition, you |
| getting a structured settlement. In a structured | | | | may do better financially with a lump sum payment. |
| settlement, instead of getting paid in one lump sum, | | | | Other types of investments may give better rates |
| payments are made to you over time. Structured | | | | of long-term return. In addition, one should be wary |
| settlements are often set up by purchasing several | | | | of excessive commissions for annuities. |
| annuities to guarantee payments over a long period. | | | | |
| But why would anyone want to get paid over time | | | | When considering a structured settlement, plaintiffs |
| instead of all at once? | | | | need to be careful of any potential self-dealing. |
| | | | | There have been cases where lawyers pocket a |
| The main advantage of a structured settlement is | | | | large commission on an annuity that they set up for |
| tax avoidance. If set up properly, plaintiffs can have | | | | their clients. Lawyers have also been known to |
| significantly less of a tax burden. In some cases, | | | | recommend a financial planner to set up an annuity |
| structured settlements may even be tax-free. By | | | | while collecting a referral fee at the same time. |
| guaranteeing an income over a period of time, | | | | |
| structured settlements can also protect plaintiffs | | | | Plaintiffs also need to consider their life expectancy. |
| from themselves. Many people do not know how | | | | Unfortunately, victims of malpractice or personal |
| to manage their finances or cannot say no to family | | | | injury can have a shortened life expectancy. Since |
| or friends. Structured settlements essentially | | | | many annuities cease payment upon death, it may |
| provide an "allowance" that would make it difficult for | | | | make sense to insist that a minimum number of |
| plaintiffs to splurge. | | | | payments are made or that the remaining payments |
| | | | | be paid into the plaintiff's estate. |
| Many, however, feel that structured settlements | | | | |
| may limit their options. For example, plaintiffs | | | | For more information on structured settlements, visit |
| sometimes have difficulty purchasing a home, or | | | | ProTaxFinancial. |