Structured Settlements Formation
settlements can be formed in many ways, and their structure is
primarily determined by the financial needs of the victim.
The simplest structured settlements are created with an even
distribution of cash on a given interim for the term of the
agreement. Such a
settlement could include a payment every month for 20 years as an
settlements can also be set up in a way that will match anticipated
costs as they are predetermined.
If a person will initially require a nurse or home care
assistance for a given period of time, a structured settlement can be
set up to include heavier payments of the front side.
If assisted living or nursing home services will be required
but not for several years, the settlement agreement may be weighted to
provide more income later.
structured settlement can also be set up to provide periodic larger payments or an extra
payment when it is know for instance that every 4 years a new
wheelchair or hospital bed will be needed.
Your attorney or structured settlement broker is in the best
position for determining what details and requirements should be
important thing about working out your settlement is to
have a team on your side who determines what you will need and when
you will need it and to be sure to allow adequate room for
inflation. Costs simply
go up and they rarely go down.
Building in enough room for inflation is absolutely critical.
properly developed structural settlement agreement also includes the
time value of money because by design, they do not pay interest.
The interest is calculated in as a part of the payment.
In essence, the structured settlement incorporates a fixed
interest rate that is also completely tax-free as it is part of the
on Structured Settlements