Many civil cases, particularly accident and personal injury
lawsuits, never make it to trial because the parties reach a settlement
agreement earlier in the litigation process. Generally, a settlement requires
the plaintiff (person brining the lawsuit) to discontinue any further legal
action in exchange for receiving a money payment from the defendant or the
defendant’s insurance company. Structured annuity settlement payments are
usually lump-sum (all at once) or structured (regular payments over a period of
time).
A structured annuity settlement is an arrangement that
provides the plaintiff with regular payments over the course of several years
or for the rest of the plaintiff's life. They are especially helpful when the
plaintiff suffers a serious and permanent injury known as a catastrophic
injury. With a structured settlement, a defendant's insurer typically funds an
annuity policy for the plaintiff. An annuity produces a continuous stream of
income over the term of the structured settlement. Annuity contracts can be
quite complex to cover a variety of expected expenses. (Structured annuity settlement)
Before accepting any settlement structured annuity agreement
you should always discuss all available options with a tax attorney, personal
injury attorney or certified public accountant (CPA) to fully explore tax
consequences of a verdict or settlement. Below are some pros and cons of
structured settlements for you to consider. (Structured annuity settlement)
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