What Are The Good Effects Of Structural Settlement For The Liable And Injured Parties?
Posted By Brian Harvings on January 3, 2011
If you have had a personal injury case decided in your favor, you may receive what is termed a structural settlement. This is a settlement for personal injury damages that isn’t a lump sum payment but rather a series of payments over time.
Instead of the lump sum payout that has been the common way to pay damages for many years, a structured settlement takes this award and pays it out in installments over time.
A structured settlement basically divides up your award. Then, the liable party pays out in scheduled periods, a set amount each payment, until the entire amount is paid. It is almost like when you make a car payment on your car, until you have paid off the entire balance, except in a structured settlement there is no interest paid.
Your damages will be paid out over the specified period of time. The total amount will be divided up such that it is paid in full. Generally this is paid monthly, and the full amount paid out over years. The exact time frame depends on the amount of the total settlement and the monthly payment.
Both the injured party and the liable party can benefit from this setup. The injured party often does better when they get their money over time instead of all at once.
Part of the benefit of this is that the injured person will have an income to cover any unforeseen issues that are the result of the injury. This is important. It is possible that the effects of the injury can be lasting.
It isn’t just the injured party that benefits when damages are awarded via structured settlement. The liable party also benefits. The liable party ends up avoiding a huge tax burden. The tax amount is reduced since the settlement is paid over time.
When you have a personal injury case, a structured settlement may be your best option. It helps to know how these work. Such a settlement can ensure you have income over a long period of time, which can really be a major plus.
Aside from legal settlements, the writer also regularly contributes articles regarding affordable individual health insurance and IV dental sedation.
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