If your personal injury case settles or you get money from a judgment, instead of getting the settlement funds in one lump sum, you can put the money into an annuity called a structured settlement. A structured settlement works just like an investment, except the payments are typically guaranteed and tax free. This can be a very good alternative to getting the money in a lump sum.
Structured settlements are also great because the terms are highly flexible. For example, if your minor son or daughter is injured in a personal injury accident and gets a monetary settlement from the liable party, the money can go into a structured settlement that can pay out when your son or daughter turns 18, 21, or 25. Even better, the amount of interest such a structured settlement can generate means the actual amount of money your son or daughter gets is much higher than the settlement amount.
Another example of a good structured settlement is one that is arranged to supplement your income on a monthly or yearly basis. Instead of getting a lump sum up front, you can structure the settlement so you are paid a certain amount over a 10- or even 20-year period. Or you can set it up to get half the settlement money now, then half in a structure.
If you have an injury or accident case and would like to talk to an experienced Kansas City Personal Injury Lawyer about structured settlement options, please don’t hesitate to contact me. Consultations are free and I would be glad to talk to you.
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