Riverside County Injury Lawyer Kevin Cortright discusses Structured Settlements
When settling an insurance claim either for a personal injury or a workers compensation case, sometimes structured settlements are a useful settlement tool. A structured settlement is the financing procedure to deal with the claim and can assist in getting it settled. A monetary settlement can typically take two forms if you are offered a choice. Either a one-time lump amount payment, or a long-lasting periodic series of deferred organized settlement payments. Which is best for your scenario?
A structured settlement involves a financial or insurance plan which includes a routine stream of payments, that a claimant or plaintiff accepts in order to resolve a workers’ compensation claim claim or personal injury case. They were first made use of in the United States during the 1970s as an option to swelling lump sum payments that can be required when someone has suffered a serious injury.
An organized settlement is a deferred payment approach for financially compensating injury sufferers, and is a voluntary agreement between the injury victim (plaintiff) and the accused or insurance company. The complainant will get the monetary payout throughout a number of years with this deferred payment arrangement. Under a structured settlement, an injury victim does not receive settlement for their injuries in one large lump sum, however rather, they will receive a stream of tax complimentary payments made to achieve future medical expenditures and living requirements. This type of settlement approach is becoming more popular in a wide range of legal cases.
The advantages of an organized structured settlement over a lump-sum payment consist of the security of an assured lasting stream payments with deferred payments that can be exempt from taxes. The federal government encourages the use of structured settlements in workers’ compensation claim cases.
Structured settlements can be ideally suited for cases with:.
• Persons with disabilities.
• Guardianship cases that might include minors.
• Workers compensation cases.
• Wrongful death cases.
• Severe injury case.