How Are Structured Settlements Structured?
The structured settlement is becoming one of the most common methods for individuals to secure payment from those lawsuits that they have filed and won. If you have been hurt or otherwise victimized and a judge has ruled that you deserve to be compensated for what's happened, or the defendant is willing to work out compensation with you, a structured settlement may be one of the best methods for you to receive those funds. Understanding how they are set up and how they work for you is essential getting the funds that you need, the way that you need them.
Setting Up A Structured Settlement
A structured settlement is set up between you and the defendant, unless there is a court order ruling over it. Most commonly, you will want to set this up so that it benefits you and any needs that you may have. The good news is that these settlements are very flexible, allowing you to find the right method for your specific needs. This is one of the benefits that these settlements have to offer in fact.
The most common method of structured a settlement is also the simplest method for many. The amount that is owed to you is simply divided among equal monthly payments over a period of time which you both agree on. Other intervals can also be set up, depending on what's the best option for the situation. You may get a monthly payment every month for the next 10 years, for example.
But, that's not always the way that they are structured. For many, it becomes important to receive a larger amount of payout at specific times, perhaps at the end of the year to pay down any medical bills prior to the next year. A settlement can be structured so that the payout of extra funds can be sent at predetermined times as well.
For someone that is confined to a wheelchair or will need other equipment every few years, it may be important to have an additional amount sent to them at that point so that the needed purchases can be made specifically for one need. There are many different ways that these settlements can be structured to fit your own needs.
Since structured settlements are a voluntary agreement, you don't have to agree to the terms that are set up by the defendant or their legal team. You can determine a better way for the funds to be sent to you over a specified amount of time. The goal is to find the solution that fits you the best.
Working closely with your attorney is one of the best things that you can do when it comes to understanding how structured settlements work. If you have questions, make sure to ask. In addition, if you have any concerns about the methods that will be used to structure your settlement, get clarification so that you can find yourself in a better position for making decisions regarding your compensation. In this manner, a structured settlement can be an ideal method for being compensated.
Full Disclosure: I am not licensed or trained as an attorney or an annuity agent. Please consult appropriate professional assistance before making any financial or legal decisions.
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