Structured Settlements Have Benefits and Costs

Structured settlements are sometimes awarded in a variety of court settlement processes rather than a lump sum award. These settlements provide a number of benefits to the recipients including tax reductions or exemptions, allowing the recipient to keep more settlement money to meet their needs.
Structured payment schedules have an advantage in helping people manage their award money. This is a great benefit for recipients who do not have money management skills or who might e taken advantage of by family or friends and having structured payments can provide the recipient a lifetime of financial stability.
Settlement payments are except from a number of court orders or decrees including divorce and credit payments. Further, settlement payments can be added to social security benefits as they become available. Security is also found in these regulations that ensure that life events will not touch your payments.
For recipients with severe disabilities, settlement money can be put in a special needs trust fund. Doing so allows medical expenses not covered by Medicaid or government allowances to be paid without any other issues.
Injured recipients can really benefit from a structured settlement as the payments can help to fund medical equipment or customized vehicles or home features. These purchases might otherwise be impossible or be severely limited by a person's financial state. The structured settlement can provide for long term, comfortable living.
Structured settlements however, are not for everyone. Some people have found that selling some or all of their structured settlement provides a better option. Trading your settlement payments for a lump sum can help you get out of debt or allow you to invest.
There are options that allow you to see all or some of your payments from a settlement for a lump sum. This money can then be used to buy a home, car, or pay for education costs that may have otherwise been impossible.
Having your settlement in a lump sum may also help you avoid inflation as your money will be worth more now than in coming years when inflation has raised the cost of living. There are a number of companies that can help you sell your settlements without paying taxes on your award.