Congress passed the Periodic Payment Act of 1982 to help popularize the use of structured settlements as viable methods of receiving financial compensation after an accident. Through this act, all of the payments from structured settlements are tax-free. You do not have to pay any taxes on structured settlements. There are, however, some exceptions where …
There is no one specific accident that necessitates a structured settlement annuity to pay out compensation. People are more likely to use structured settlement annuities to pay out their settlements under certain cases, such as if a minor is involved or if you want to budget your money. Structured settlement annuities tend to be very …
When a minor receives compensation for their injuries and damages, they will typically receive them in the form of a structured settlement. Structured settlements slowly pay out compensation over a fixed period of time. This is in contrast to a lump sum settlement, which gets paid out all at once. There are times when the …
Structured settlements, in theory, help plaintiffs get a steady stream of money over a fixed amount of time after they win compensation. This is usually done either through the ruling of a court or willingly by both parties. Sometimes, the recipients of structured settlements need cash faster than what their structured settlements allow. In this …
Most personal injury cases result in a settlement reached between the injured person and the at-fault party rather than a jury award, since most personal injury claims do not go all the way to court. Unfortunately for the injured person, structured settlements have become increasingly common since the passage of the Periodic Payment Settlement Tax …
In a personal injury case, the injured person can receive compensation in a variety of ways. One situation is called a “lump sum” settlement, and that occurs when the injured person gets the entire monetary amount of their settlement at once. For example, if your settlement is $100,000, a lump-sum arrangement would mean you get …
