Structured Settlements Definition
settlements are structured cash payments through an
annuity system that is established to compensate injury victims
for their losses. Structured
settlements are the other alternative payment system to a lump sum
cash settlement and are set up to provide payments to you over time.
settlements received special legislative treatment by the U.S.
Congress in 1982, as a way to make large settlements more agreeable
to parties and provide certain protection to victims.
As a result,
many people now choose a structured settlement agreement over a lump
sum distribution, and courts often award them in civil actions where
there will be long-term costs of living and the necessity for
obtaining cash payments at some point in the future.
a structured settlement, the victim will receive compensation over
an extended period of time (often a lifetime) instead of a large
single payment. The
structured settlement is a way of protecting the victim from
economic loss and hardship, while also making the payout more
palatable to the defendant.
on Structured Settlements