What You need to Know about Structured Settlements added

If you’re involved in a lawsuit as a plaintiff, you’ll have a lot to consider. It’s an emotional and difficult affair. You’ll be presented with many choices along the way and encounter a few surprises. One such choice as the prevailing party in a civil action is in regard to your payment options. When you win a court case, you’ll generally have to choose between a lump sum payout or a structured settlement. Both have advantages and disadvantages but you need to know about structured settlements to make a more informed decision.
What You need to Know about Structured Settlements
Many personal injury cases result in the plaintiff receiving compensation. While the amounts vary, usually there is an option to take a lump sum or to enter into a structured settlement.
Plaintiffs might receive compensatory and/or punitive damage rewards from a court of law. When this happens, the defendant is under court order to pay the plaintiff. So, you can opt to receive a lump sum or go with a structured settlement. But you should know what the latter means.
Here’s what you need to know about structured settlements:
1. A structured settlement provides a steady income stream. The most attractive aspect of choosing a structured settlement is that you receive, regular payments. That provides peace of mind for most people. But, there are instances when it’s not as advantageous.
2. The payments from a structured settlement are mostly tax free. Another benefit to receiving a structured settlement is the payments are mostly tax free. A lump sum payment is considered income by the IRS, and is therefore taxed. However, structured settlements come through a third-party entity and investment, which usually means no taxes.
3. Structured settlement contracts provide flexibility before finalized. A particularly attractive benefit to receiving a structured settlement is the ability to get regular payments of equal amounts. Or, choose to receive periodic lump sum payments over a given schedule.
4. Payments from a structured settlements are fixed, not adjusting for inflation. Regardless of what you choose, the cost of living, known as inflation, increases yearly. Structured settlements do not adjust for inflation. In other words, you won’t receive a COLA (Cost of Living Adjustment).
5. The plaintiff receiving a structured settlement is allowed to sell it for a lump sum. If a structured settlement becomes too difficult to deal with, you can always sell it off for a lump sum.
As you can see, there’s a lot to consider about receiving a structured settlement. So, it’s best to get helpful advice to make the right decision.For help with structured settlements or any type of Commercial Loan in Texas please see http://proactivelendinggroup.com

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