Well, are you one of those who would prefer to give or take regular cash rather than a huge inflow or an outflow of funds? Then, structured settlements are the best option for you in case you are tied in one of those legal tussles around. A structured settlement is when the defendant agrees to give the plaintiff a regular amount of money paid in installments rather than a huge lump sum. These settlements are usually done in the presence of a certified financial planner and the plaintiff’s attorney.
Enjoy the convenience that comes along with structured settlements
The settlement gives you enhanced convenience which does not come with the legal cases. You can pay the amount in annual installments or even periodic lump sums once in 2 to 3 years. Also, the structured settlement reduces the risk for both the parties. This is perfect for the defendants who have the fear of financial liability. Also, you can save a lot on the legal expenses which would become redundant with structured settlements. Also, if you are on the receiving end of the structured settlement and are injured, these regular money in fixed intervals can come handy if you want to purchase any specific medical equipment or any other modified vehicles.
Get steady cash for a number of years if you are a plaintiff
Apart from the steady cash, you might be startled to know that these payments earn returns which are approximately double of the rates of Government or municipal bonds. Also, a significant benefit of such arrangement is tax avoidance. You can tax advantage both at the state as well as federal level. An important point to note here is that returns that are earned from the lump sum are subject to tax at both state and federal level.
Get enough time to arrange the money
If you are a defendant, then there is a huge advantage of not arranging the lump sum of money at one go. Even if you don’t have money, you still get a lot of time to arrange it. You can purchase annuities which guarantee regular payment which can be disbursed to the plaintiff.
Less risk of being duped by a conman
Now avoid the risk of getting duped by opportunistic or greedy people. Many senior people are usually the target of the meanest people in case they have huge amount of cash with them. Regular and small installments would keep them at bay as they would not be attracted to the huge amount of money that comes along with huge lump sum. A beneficiary also benefits from the structured settlements in a way that all the money doesn’t gets dissipated faster as might be the case of lump sum money. You can easily cater to your future needs with the regular money coming along with structured settlements. It is nice to receive and give a regular supply of money over a period of time and thus is highly beneficial for both the receiver and the giver.