ANNUITY STRUCTURED SETTLEMENT
Hello all
Today we'll talk about
What is a Structured Settlement
A structured
settlement is a type of annuity that pays out an award from personal
injury cases, lottery winnings,
workers' compensation claim or any form of legal settlement in a lump sum with
certain tax advantages. Structured settlement owners receive periodic tax-free
payments over time in accordance with the terms
History of
Structured Settlements
For many years,
plaintiffs who won compensatory damages from a defendant received large
lump-sum settlements. While the payouts helped recipients pay for medical
expenses and other costs related to the legal settlement, many lacked the
financial know-how required to skillfully manage large awards.
The Periodic Payment
Settlement Act, passed by Congress in 1982, encouraged the use of structured
settlements in physical injury cases, and provided legal incentives for their
use by amending the federal tax code. It also stated that payments be offered
in installments over time, and the entirety of every structured settlement
payment would be exempt from federal, state and local income taxes.
ANNUITY STRUCTURED SETTLEMENT
Why Do People
Receive Structured Settlements
Legal settlements from
personal injury cases, wrongful death cases and workers' compensation claims
are among the most common reasons people receive structured settlements.
Personal Injury
A plaintiff wins a large
jury award or settles a claim for a large sum, and the amount is structured
into monthly or annual payments over time. Those payments help recipient pay
for medical expenses or other costs.
Wrongful Death
A common way to
compensate the family of someone whose death was the subject of a wrongful
death claim.
Workers' Compensation
Structured settlements
are used to pay workers who get injured on the job while they recover from
their injuries.
ANNUITY STRUCTURED SETTLEMENT
And here we come to the conclusion
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