Structured settlements are one of the safest and most stable investments in the market. The rate of return is fixed when the annuity is purchased, providing the claimant with a reliable investment, regardless of how the market is doing. Structured agreements are an excellent way to ensure long-term financial stability. But there are bad apples in every industry.
Accident Victims and Their Lawyers Need to Protect Themselves. Second, structured settlement saves you money on your taxes. While the money you receive in a personal injury settlement is generally not taxable, you do have to pay taxes on the interest and dividends you receive on the settlement money after you invest it. That can be a big tax payment every year.
With a structured settlement, you have much less money in the bank and, therefore, a much lower tax liability. A vital and most favored benefit of the structured agreement is the security and peace of mind of knowing that the money will be there when needed. This and other benefits of a structured settlement are not always apparent to the recipients of the settlement or their financial advisors. Inevitably, the settlement process is extremely stressful for injury victims.
ROBINYOUNG & COMPANY understands much of this stress and difficulty and is dedicated to achieving the best accelerated financial solution for each and every customer. Learn more by contacting ROBINYOUNG & COMPANY. A currently purchased structured settlement locks the beneficiary into a lifetime investment at these lower rates. If you find that your expenses increase while you wait for your first structured settlement payment or initial lump sum, you may want to consider pre-settlement financing options to help you.
Many civil cases, particularly accident and personal injury lawsuits, never go to trial because the parties reach a settlement agreement earlier in the litigation process. Before accepting any settlement agreement, you should always discuss all available options with a tax lawyer, personal injury lawyer, or certified public accountant (CPA) to thoroughly discuss the tax consequences of a verdict or settlement. In 2002, Congress passed the Structured Settlement Protection Act to prevent unscrupulous organizations from buying, at deep discounts, the right to future structured payments for people with disabilities. The best reason to support structured settlements is to have income payments that last for the life of the beneficiary.
Your lawyer is likely to have helpful opinions and will negotiate the terms of the agreement on your behalf. If they suddenly face unexpected expenses, some families may be tempted to “reverse the annuity process to get the rest of the agreement as a lump sum. When a plaintiff receives a lump sum settlement, they may spend it too quickly, depriving them of the long-term financial security that future payments could provide. When you settle a portion of your personal injury claim with a structured settlement, you have funded known expenses such as rent and ongoing medical bills with reliable annuity payments.
John Darer is another respected structured settlement consultant who writes the industry's leading Structured Settlement Watchdog blog. Make sure that settlement money that funds a structured annuity is sent directly to the life insurance company. American General Life Company insurers are market leaders in drafting structured settlement annuities and have been in business for more than a quarter of a century. .