Structured Settlements Definition

Structured settlements come in many more shapes and sizes than the typical annuities people purchase for retirement income. Learn more about structured settlements by talking to a lawyer.

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Congress passed the periodic payment settlement act in 1982 which streamlined the use of structured settlements in personal injury lawsuits.

Structured settlements uk. However under the 1996 damages act structured payments are granted full protection under the policy holders compensation scheme now the financial services compensation scheme. Most cases are paid as a lump sum. Structured settlements have become increasingly common in the uk since the first one in 1989. Current and future relevance of structured settlements. Structured settlements are often paid through annuities that are held and administered by insurance companies. Periodical payments aim to help the claimant manage a large settlement amount over many years and offer comfort to someone in knowing that a continuous annual income will be received every year for the remainder of their life. In many circumstances a settlement may be a faster cheaper and less stressful alternative to trial. Opens in a new window. Hear directly from the industrys leading voice the national structured settlements trade association. Learn more about trending now. Structured settlements are regulated on a national state and sometimes even local level. But it is important to note that the uk does provide the same tax protection for structured settlements as the united states does. Life contingent payments last only as long as the person who was awarded the settlement is alive. The legislation shielded structured settlement payments from federal state and local income taxes. A structured settlement is a negotiated financial or insurance arrangement through which a claimant agrees to resolve a personal injury tort claim by receiving part or all of a settlement in the form of periodic payments on an agreed schedule rather than as a lump sumas part of the negotiations a structured settlement may be offered by the defendant or requested by the plaintiff.

The payments may be scheduled for any length of time usually as long as the claimants life and may consist of instalment payments andor future lump sums. Sales support sales support the driving marketplace growth program provides brokers with information tools and resources they can share with their clients and industry contacts. The united kingdom uk and canada. 2 structured settlements a structured settlement is the payment of money for a personal injury claim where at least part of the settlement calls for future payment. As part of the settlement negotiation process a qualified structured settlement broker can design an annuity contract to meet the present and future needs of the recipient and their family. Contact an experienced personal injury attorney to discuss the facts of your case and help you decide whether a structured settlement would be in your best interest. In the uk structured settlements are only used as payment for the largest financial awards. Whether a structured settlement can be inherited depends on whether the annuity contract specifies life contingent payments or guaranteed payments.