When someone is injured due to a company’s negligence, the physical, emotional, and financial toll can be overwhelming. At Turner-Monahan, PLLC, we walk with our clients through the entire litigation process—not just to win their case but to ensure they are positioned for financial success long after their claim has been resolved. One powerful tool that helps injured individuals build a secure financial future is a structured settlement.
What Is a Structured Settlement?
Generally, a structured settlement is a financial arrangement in which an injured individual receives compensation through a series of periodic payments rather than a single lump sum. These payments are typically funded through an annuity purchased by the defendant or their insurance company and are designed to meet the individual’s medium or long-term needs. Numerous types of annuities exist to address the needs of different individuals—from structures designed to provide funds during the period that an individual expects to attend college to structures that will provide regularly monthly payments for the remainder of an injured individual’s life.
Unlike a single lump-sum payment that can be quickly depleted—especially when unexpected medical bills or other difficulties come into play—structured settlements provide a steady, tax-free income stream that can last for years or even a lifetime.
Benefits of Structured Settlements
1. Long-Term Financial Security
The most significant advantage of a structured settlement is the stability it offers. Payments can be scheduled to align with the plaintiff’s future expenses, such as medical care, rehabilitation, housing, or even education.
2. Tax Advantages
Structured settlements can be used to reduce or eliminate income taxes on future periodic payments stemming from personal physical injury claims. However, because the rules and regulations relating to the taxation of structured settlement payments can be complex, it is important to work with an injury attorney that is experienced in working with structure brokers and other financial professionals to maximize the long-term benefits of an injury settlement.
3. Customization and Flexibility
Structured settlements can be tailored to each plaintiff’s unique needs. Payment plans can include monthly income, annual bonuses, lump sums at predetermined intervals, or a combination of these.
4. Protection from Poor Spending Decisions
It’s not uncommon for large lump-sum recoveries to be spent more quickly than an injured individual initially anticipates. A structured settlement reduces this risk by delivering funds gradually, either in bulk at certain later dates or through a series of ongoing payments.
Who Should Consider a Structured Settlement?
While structured settlements are beneficial in many personal injury cases, they are particularly valuable for:
- Individuals with permanent disabilities or long-term medical care needs;
- Minors—to achieve a better return on their settlement until they reach age 18 compared to the very limited returns available to them when their settlement funds are held by the court until they become an adult;
- Families facing future education or other long-term care costs;
- Injured individuals who want regular payments over an extended period of time; and
- Individuals who may not be comfortable managing significant financial assets.
Working with Trusted Advisors
At Turner-Monahan, PLLC, we work closely with financial professionals, structured settlement brokers, medical professionals, and life-care planners to help our clients understand their options and make informed decisions to assist in securing their financial future.
Final Thoughts
For some injured individuals, securing a legal victory is just one step in the journey toward healing and recovery. By selecting the proper structured settlement for their needs, an injured individual can gain peace of mind knowing their financial future is protected. If you or a loved one has been hurt because of someone else’s negligence, the experienced personal injury attorneys of Turner-Monahan, PLLC can assist you in not only seeking compensation but in turning that compensation into lasting financial security. Because there are strict time limits within which a claim for personal injuries must be made, schedule a free, no-obligation consultation with attorneys Tyler Monahan or Matthew McLain to discuss your case and explore your options. Let us help you achieve the justice and compensation you deserve.
Disclaimer
The commentary and opinions are for informational and educational purposes only and not to provide legal or tax advice. You should contact an attorney in your state to obtain legal advice concerning any particular issue or problem. You can become a client and enter the attorney-client privilege only after hiring Turner-Monahan, PLLC, by signing a written agreement.
