What is a Structured Settlement?

A Structured Settlement is an alternative to a lump sum cash award in the resolution of a personal physical injury or workers' compensation claim. 

Structured Settlements are encouraged by Congress as a way to compensate individuals involved in a personal physical injury by allowing the periodic payments to be received TAX FREE.

IRS Code Section 104(a)(2)

Gross income does not include - the amount of any damages received (whether by suit or agreement and whether as lump sums or as periodic payments) on account of personal physical injuries or physical sickness;

Types of Structured Settlements

• Personal Physical Injury
• Medical Malpractice
• Workers' Compensation
• Wrongful Death
• Car Accident
• Dog Bite
• Traumatic Brain Injury

Advantages of Structured Settlements

Spendthrift Protection                        No Investment Risk

Wage Replacement                               No Fluctuations in Value

Retirement Assistance                        No Investment Expertise

Provide for Future Medical Bills     No Ongoing Management

Guaranteed Benefits                      Fees or Expenses

Income Tax Free

Why Use a Structured Settlement?

It has been estimated that 90% of all personal injury settlements are dissipated within five years of the settlement.

Information is not to be used as Legal or Tax Advice. Please consult your tax advisor to see if a Structured Settlement is right for your situation.