When you win or settle a personal injury case, there are different ways you can receive your award. You have the choice to either receive the money in one lump-sum payment, or you can choose to receive the money in payments over time.
A structured settlement is a great option for you if you wish to receive the payments from your personal injury case award over a period of time. The series of payments is referred to as a structured settlement.
Read on to learn more about structured settlements.
Details of Structured Settlements
There are many elements to consider when deciding how to receive your award, including the following:
- Your tax liability
- How you plan to spend the money
- Whether you need help managing a large amount of money
If you choose to receive your award in a structured settlement, you’ll obtain periodic payments over a set number of years. For instance, if you win $600,000, you may receive payments of $60,000 every August for ten years.
With a structured settlement, you have the following options for receiving your payments:
- Substantial initial payment. Let’s say you’ve been out of work for a while and your bills are starting to add up. You’re able to set up your structured settlement to administer a hefty first payment so you can pay for your bills, pay off your mortgage, or buy big-ticket items you need, such as a car. The lesser succeeding payments can then provide an alternative for lost income.
- Supplementary payments for exceptional costs. You can designate your settlement to provide your annual income with added amounts designed to pay for exceptional costs, such as college tuition.
- Higher payments over time. You may set up your settlement to increase your payments over the years. In this model, your payments will start somewhat low and get higher as time passes.
- Lower payments over time. You may set up your settlement to decrease your payments over the years. In this model, your payments will start higher and reduce over time.
- Postponed payments. You may choose to postpone your settlement payments until you reach retirement.
We Can Help
If you wish to start a structured settlement, our team at Legacy Enhancement Trust is here to help. We have helped many others achieve their financial goals, and we can help you, too. Don’t hesitate to contact our firm with your case right away.