When asking yourself if a structured settlement can benefit you, it is best to know both sides of such an agreement. What is a structured settlement in its most basic form? What are the benefits, and the downsides? How does your specific situation relate?
At its most basic definition, a structured settlement is an agreement that is outlined in a way that fits both parties according to the particular situation. The situation involves personal injury cases or even catastrophic injury cases. The two parties involved are the defendant and the plaintiff. In a case, it is the plaintiff who was wronged in some form, and thus the defendant pays the plaintiff in a structured settlement. The structured settlement can be paid in many forms, the most common ways being cash paid in full, or a payment plan that can be agreed to last anywhere between years to the entirety of the plaintiff’s life. The payment plan is called a structured settlement annuity, and the money usually goes toward related medical expenses or the expense of basic living needs.
A structured settlement involves a contact, which at times can become confusing and complex. Speaking with your attorney can help diffuse the complexity. The agreements of the structured settlement can be made privately or with the utilization of a court order. The agreement can be very flexible, meeting both of the parties’ needs. An annuity is known for its affordable price and flexibility, and is thus the preferred method of payment. The payment’s amount and schedule can be determined by the victim’s cost of expense, and can be measured with an attorney or a structured settlement consultant.
Structured settlements are preferred in the different situations of many cases, including:
Examples of structured settlement cases include those who have been wrongfully victimized. One such hypothetical example exists if a young girl and her friends were playing outside and got attacked by an unprovoked dog. The owner of the dog is the defendant and the girl is the plaintiff. A case like this would involve money for medical expenses up until an agreed date.
When deciding whether or not you want to opt for a structured settlement in your case, it is best to understand both the benefits and the drawbacks. The benefits of a structured settlement include:
Sometimes, a structured settlement may not be the best option for your situation. This decision is all yours. Some drawbacks of structured settlements include:
When getting a structured settlement, the first step is to speak with a professional manager of structured settlements or a personal injury attorney. Speaking with an individual who deals with structured settlements often can answer any questions or clarify any aspect. An agreement must be reached between the two parties of the plaintiff and the defendant, and the proper procedures must be taken, according to the third party involved.
There are many ways to settle a case, and a structured settlement is only a single option. Talk with your attorney or a structured settlement expert to help decide if a structured settlement is the best route to take for your specific situation. For some, a lump-sum payment would be a better option. It all depends on the particular situation and your status as a plaintiff or a defendant.
No matter which route you choose, know that the choice is yours. With this knowledge, if you feel that the structured settlement would benefit you in your individual situation, then do what you feel is right. Understanding how a structured settlement works beyond the brief mentioning of them in commercials helps construct your future. No matter which side of the structured settlement you are on, know that there are resources out there to guide you and help you through the situation. For any and all questions about structured settlements and how they can benefit you, you can always contact a personal injury attorney.