Structured Settlements Definition

Tax advantages of structured settlement annuities. Structured settlement annuities became popular beginning after the 1982 passage of the periodic payment settlement act ppsa as congress added to irc.

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Settle Your Claim Structured Settlement Information For

A structured settlement often referred to as a structured settlement annuity is a long term stream of payments to someone a plaintiff who has won or settled a civil lawsuit with a defendant.

Structured settlement annuity example. Take the example above of a. German pharmaceutical company grunenthal manufactured the drug to ease morning sickness for pregnant women but the sedative caused severe life threatening birth defects in thousands of children. Structured settlements were first popularized in canada during the 1960s as a way of managing payouts from settlements involving thalidomide. Structured settlement examples of actual cases and the payouts. Geoff is an injured person who is receiving a tax free personal injury annuity under a structured settlement. Structured settlement info center. Section 104 a2 the following emphasized words whether by suit or agreement and whether as lump sums or as periodic payments. In this case the at fault party puts the money toward an annuity which is a financial product that guarantees regular payments over time from an insurance company. If you have received a structured settlement or annuity from a law suit or by winning the lottery and want some quick cash the best structured settlement companies can help you. These companies will buy your existing structured settlement payment plan and turn it into quick cash through one lump sum payment. Large settlement amounts in civil lawsuits are often paid out in a structured settlement. What is a structured settlement. The annuity has a guarantee period of 10 years from the date of settlement. Geoffs sons michael and robin are specified in the annuity contract as the reversionary beneficiaries. If the amount of money is small enough the wronged party may have the option to receive a lump sum settlement.

Lump sum vs annuity structured settlement payout options info about cash for structured settlement payments. Geoff dies five years from the date of settlement. Structured settlements are legally binding. For larger sums however a structured settlement annuity may be arranged. Since structured settlements can be confusing especially to those not in the structured settlement industry here are some structured settlement examples of awards and agreements from defendants in actual cases for the structured settlement industry in which the structured settlement or factoring company acts as the plaintiff. Its another often smarter way to receive a court award for damages other than a lump sum payment. These civil cases are generally the product of a at fault party causing some type of harm or damage to another person. Sample annuity contracts we suggest you review these samples so you have a good understanding of the legal documents associated with structured settlement annuities as well as how annuity payments are received and from whomif you have questions contact us for more information.