Structured Settlement Payments
When a structured settlement agreement is reached
on the benefits to be included, the defendant will agree to fund a
stream of cash to the victim. The structured settlement
payment obligation is then legally assigned to an independent third
party that has experience in this area.
An example of such a third party would be a life
insurance company. In
this way, the victim is protected from further legal complications
or financial hardship of the defendant.
The
structured settlement is generally set up as some sort of an annuity
that makes payments according to the prescribed and agreed upon
schedule.
In
most cases, the structured settlement payment is made on a monthly
basis, though this is an item of negotiation. Other times, the
structured settlement payment may include periodic increases or
additional payments when there will be additional costs that have
been identified in advance. An example of such might be buying
a car or a wheelchair.
More
on Structured Settlements
