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Benefits of Structured Settlements & Payments
Structured settlements have many benefits as they provide a steady source of cash that is completely free of tax liability, both Federally and at the State level. This is different than lump sum settlements where investment proceeds made with them such as interest are subject to both Federal and State taxes. Another benefit to structured settlements, especially for seniors and their adult children, is that there is added security in receiving smaller amounts of cash over time. Many seniors are the target of greedy people and a large pot of available cash can make them an even more attractive target to such people, and subject them to permanent loss of assets if they are grossly mismanaged by a trustee. A third benefit to structured settlements is that the recipient doesn't need to worry about investment strategies or not adequately planning for the future. Those who do not receive structured settlements must concern themselves with making sure that they do not spend too much from an account that looks like it should last forever, and subject the entire award to financial risk. A fourth benefit to structured settlements is that they are often arrived at without the risk and time loss of going to court. For many reasons, defendants who believe they could have liability, will make an offer of a structured settlement to minimize their costs. |