Structured settlement vs. lump sum

Set Text Size SmallSet Text Size MediumSet Text Size LargeSet Text Size X-Large
Updated: 4/13/2007 3:36 pm
If you're awarded damages in a lawsuit, you may be offered the choice of receiving the money in the form of a structured settlement or as a lump sum. There are advantages and disadvantages to both forms of payment, so it can be difficult to decide which one is best. Structured settlements generally consist of an up-front payment to settle medical bills and other immediate expenses. This is followed by more structured payments either over a specified number of years or for the duration of your lifetime. The advantages of a structured settlement include the security of having compensation for your long-term needs as well as the inclusion of cost-of-living adjustments. Structured settlements can also be designed to provide larger sums of money periodically, for example to cover a child's college tuition or to meet special needs when you reach retirement age. Another advantage of a structured settlement is that the payments are generally not taxed, unlike any income you may earn from investing a lump-sum payment. Disadvantages of a structured settlement include the fact that the payments may cease at a specified time, or on your death. If you're offered the choice of a structured settlement or a lump-sum payment, your attorney can assist you in weighing the pros and cons of each alternative.

Featured Segments/Shows

All content © Copyright 2015 Intermountain West Communications, LLC. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.
You may also view our Sitemap

Inergize Digital This site is hosted and managed by Inergize Digital.
Mobile advertising for this site is available on Local Ad Buy.