Instead of a single lump sum, a structured settlement pays out over time through an annuity, providing guaranteed periodic income. This can be especially useful for catastrophic injuries requiring lifelong care or for minors.
What a Structured Settlement Is
Structured payments can carry tax advantages, since personal-injury settlement proceeds are generally not taxable.
Weighing the Trade-Offs
A lump sum offers flexibility and immediate access; a structure offers security and protection against spending it too quickly. Many settlements blend the two — a lump sum for immediate needs plus a structure for long-term security.
For minors and incapacitated persons, courts often require protective arrangements.
Choosing What Fits
A free review can help you understand whether a structured settlement makes sense for your situation.
Have questions about your own situation? Get a free, confidential case review. You pay no fee unless you win. Call 973-566-5599.
This article is for general informational purposes only and is not legal advice. For guidance on your specific situation, consult a licensed Texas attorney.