Structured Settlement
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Most personal injury cases are settled out-of-court. A structured settlement can be settled out-of-court and also offers many advantages which should be considered when determining which method is best in order to receive compensation. But there are also some disadvantages to a structured settlement, and we will discuss those here as well.
If you have received undue physical or psychological harm and you have substantial proof of this, you should discuss the situation with a personal injury attorney who can also guide you in terms of whether an out-of-court settlement in the form of a structured settlement is the proper route for you to proceed. Lets first start by discussing what a structured settlement is.
What is a structured settlement? A structured settlement is simply where the claimant receives periodic payments as compensation to resolve a personal injury tort claim for a fixed period or for the lifetime of the claimant. Until 1982, to receive compensation from a tort claim, you had no choice except to receive it in the form of one large lump sum. Because of a federal law that was passed back in 1982, you can now receive compensation through a structured settlement.
In a structured settlement, usually an insurance company purchases an annuity, and the plaintiff receives periodic payments from the annuity. A structured settlement may be individualized in order to meet the unique particular needs of the claimant and therefore variability is allowed within the structure. Lets look at some of the advantages to a structured settlement.
Structured Settlement - Advantages
Periodic Payments of a Structured Settlement:
By definition, a structured settlement is where you receive payments over a period of time. One of the main advantages of receiving payments over time instead of receiving one large lump sum is that the money can not be spent in a wasteful manner. A structured settlement can be set up to meet one’s individual financial needs as they arise over time. There is a forced regulation of spending.
Tax Advantages of Structured Settlement:
Another and very important benefit is that the money received from a structured settlement is free from state and federal taxes. And if the structured settlement involves a large amount of money, the savings from not having to pay state and federal taxes can be substantial. If you receive one large lump sum of money as compensation, with no structured settlement, the interest accrued from investments of the money is taxable.
Long Term Investing Not Necessary:
If you know you will be receiving payments over your life time, it will not be necessary to invest for retirement. A stream of payments will always be directed to you. These payments usually come from an annuity that the insurance company has purchased.
Less Litigation and Lower Attorney Fees With a Structured Settlement:
Because a structured settlement can be settled out-of-court this means less time required by the plaintiff and defendant, and the defendant’s expense in terms of court costs and attorney fees is less. This is the main reason why most personal injury cases are settled out-of-court. Attorney fees can go down as much as 8% to 10% for the defendant if a structured settlement is settled out-of-court. An out-of-court negotiated settlement that favors the plaintiff results in the defendant being contractually bound to pay the plaintiff over a period of time. If the defendant attorney believes his/her client has a good chance to win the case, then the defendant may then go to court. If the attorney advises the defendant that his/her chances are not good, then the defendant can reduce the extra expense that he/her must pay in terms of court costs and attorney fees by settling out-of-court via a structured settlement.
Flexibility of Structured Settlement:
Structured settlements can exist in a variety of formats. For example, the money can be disbursed for college education or marriage, and not while the claimant is a minor if so desired. The money can be disbursed during any anticipated time in ones life where expenses are anticipated to be higher. A structured settlement is very flexible.
These are some of the main advantages to receiving compensation in the form of a structured settlement. Because every person’s individual circumstances are unique, you should discuss these advantages with your personal injury attorney. There are some disadvantages to a structured settlement as well. Lets look at some of these.
Structured Settlement - Disadvantages
Investment Restrictions Associated With a Structured Settlement:
If you are good at investing money, you most likely would have a greater return from investing one large lump sum of money. With a structured settlement you would not receive one large lump sum of money. Standard investments can result in a greater return compared to what you receive from an annuity.
Decreased Purchasing Power Associated With a Structured Settlement:
If you want to buy an expensive item such as a home, you can not borrow off of future payments from the structured settlement. It can be difficult to save enough money to purchase an expensive item because the payments from the annuity are periodic.
So as you can see, there are advantages and disadvantages to a structured settlement. Every individual circumstance is different and it really depends on the future needs of the plaintiff. While a structured settlement may work out well for a young plaintiff, given that younger individuals in many cases have not developed a certain degree of financial maturity, a structured settlement may not work out well for a retiree who is already receiving income from previous investments.
If you are seeking a personal injury attorney you need to find one who thoroughly understands tort law as it stands today. There are three main classes of torts: intentional torts; negligent torts; and strict liability torts. A competent attorney who understands these three areas of tort law can advise you as to the proper direction you can proceed when seeking compensation due to the carelessness, recklessness or intentional misconduct of another individual toward you. Remember that a wrongdoing can be toward you or your personal belongings. The following directory is useful if you are seeking a personal injury attorney. This directory is provided by The National Association of Personal Injury Lawyers (NAPIL).
Personal Injury Attorney Directory if Seeking a Structured Settlement
Structured Settlement - Conclusion
If carelessness, recklessness or intentional misconduct has been placed upon you and you have proof of this, then you should seek some form of compensation. An attorney who is competent and thoroughly understands Tort Law can let you know if you have a viable case and can advise as to the direction you should proceed in order to receive compensation. An out-of-court structured settlement offers many advantages to both the defendant and the plaintiff. But there are also some disadvantages to a structured settlement as well. These advantages and disadvantages should be discussed with your personal injury attorney in order to know if a structured settlement is right for you.
Structured Settlement - Videos
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Wrongful Death Claims: Compensation For The Surviving Family
Can you imagine the anguish and the pain of the family of an individual who was wrongfully killed in a traffic altercation? The pain would be great especially if the victim is the breadwinner of the family.
Sadly, this is the harsh reality that wrongful death claimants would have to accept. This kind of claim is extraordinary in a sense that it is the surviving relatives of the victim In a normal lawsuit, the injured person is the one who files the claim with the help of their attorney.
Damages Irrecoverable in Brain Injury Claims
Brain injury, whether caused by the natural bodily functions or accidents, steals freedom from all it touches.
Incapacitating injury like this will cause you your life. In fact, it is better not to have lived at all than to be succumbed in this kind of injury. Do you know why? It is because after the pain has subsided your life will never be the same again. It is as if you are starting from scratch.
Partial Workers’ Compensation Benefits for Partial Injury
Workers’ compensation is designed to award financial recovery for workers who get injured or harmed from their jobs. This is based on the principle of strict liability; therefore, an employer is obliged to pay for the damages his/her employee has sustained. He/she will be held legally responsible no matter of who was at fault.
Wrongful Death Claim in a Mysterious Death
Different speculations regarding the mysterious death of a New Jersey college student continue to grow as the family of the victim has filed wrongful death lawsuit against the school, the state and the operator of the school’s trash compactor.
The Impact of Worker’s Compensation Claims on Small Businesses
Workers are the most important member of the labor force. Without them, capital would be futile. Thus, it is but proper to give them the proper and maximum benefits for their sustenance and well being.
Alternative Avenue in claiming worker’s compensation benefits
With a few exemptions, every state in the United States requires the employers to have or purchase workers’ compensation insurance.
Workers' Compensation laws are designed to ensure that employees who are injured or become ill or been disabled on the job are provided with monetary benefits, like payment for lost wages and payment of medical bills. This was a move to al least eliminate the need for litigation.
High speed driving, a negligent act
High speed driving is a common thing as many people think.
Many scrupulous drivers have ruled our major thoroughfares driving recklessly having no concern with his surroundings.
Many accidents were caused by venturing into high speed driving.
Why Property Owners are sued of Premise Liability
Premise liability cases arise frequently due to property owners’ negligibility in keeping their premises safe. Most of the premise liability claims of victims are filed on the grounds of negligence or unintentional torts.
Take Your Claims Seriously
As simple as a slip and fall may sound, it should be taken seriously. I agree with an article I read on premise liability, entitled, "Slip Trip and Fall, No Laughing Matter", which says that serious and debilitating injuries can be incurred in a slip or trip and fall accident. It is one of the leading reasons for filing a premise liability claim.
Product Liability Issues on Candy Recalls
For all we know, among all the states in the U.S., California has the one of the strictest policy and implementing procedures when it comes to protecting its citizens against defective and hazardous products. After giving much focus of lead contaminated toys from China, the state government is now directing its attention on Mexican candies after the recent San Antonio lead-tainted candy recall.
“What Really Causes Fatigue-Related Truck Accidents”
I just come across an article, “What Truck Accident Lawyers Should Know about the Trucking Industry” posted December last year, which discusses the reasons behind most truck accidents. In the light of the increasing incidents involving trucks in major highways, this article is worth reading.
“A Trucking Accident Story’s End”
The news article, “Montana Trucking Company Reaches $1 Million Settlement with Injured Motorist”, posted in October 2007 is the end of the story for an injured motorist’s quest for justice. The trucking company made a settlement with Lucy-Jones Parker and her 10-year daughter who figured in a truck accident last year.
New Bicycle Laws, Enacted
A recently signed law may become the key in decreasing, if not totally preventing bicycle accident occurrences in California. Last September 26, 2007, Governor Arnold Schwarzenegger has formally signed Assembly Bill 478 to require the bicycle fanatics to use lights on sidewalks, pathways and any other bicycle routes.
Increased penalties for drunk drivers
In a press release last week by the National Highway Traffic Safety Administration, their top official Nicole Nason called on the law courts and prosecutors to allow their officers to increase their use of ignition interlocks. This plan is to castigate further those individuals who have been repeatedly caught under excessive influence of liquor while driving. The whole story may be found at http://communitydispatch.com/National_Highway_Traffic_Safety_Administration_50/DUI.shtml .
Theories in Making Product Liability Claims
Product liability is among the growing cases being filed and litigated in courts especially in California. The growing need of consumers for newer varied products fuel the manufacturers drive to produce more innovative products in less time.
Slip Trip and Fall, No Laughing Matter
Premise liability accounts for thousands of personal injury cases in the country. It chooses no time and place. Premise liability can happen to you while you are at work, having lunch out, visiting a friend’s house or doing recreation.
Dangers: Apparent and Hidden
Premise liability happens anytime at any place. It is a result of the negligent maintenance of the owner or manager of the property. Sometimes they could also be the result of engineering and building code violations. These violations are also known as hidden defects.
Your Right to be secured in Another’s Property
Many people go visit the homes of their friends on a daily basis. If you are invited by your friend to his or her house, that friend has a responsibility to make his or her property generally safe and free from dangerous and hazardous condition.
Your Right to be secured in Another’s Property
Many people go visit the homes of their friends on a daily basis. If you are invited by your friend to his or her house, that friend has a responsibility to make his or her property generally safe and free from dangerous and hazardous condition.
Value for Your Money
We live in a complex world where we cannot almost do anything without the use of products which makes our lives easier. As we move forward, we find faster and better ways of doing things with less effort. From instant meals to faster cars and easier means of communicating with others.
Slip, Trip and fall in all its forms Is Actionable
Slip and Fall accidents are quite common accident. More often, it is the negligence of the owner of the place that is the cause of the slip and fall accident. A slip and fall accident generally speaking is a slip due to a wet surface or substance on the floor causing the person to fall and resulting in injuries. A trip and fall, similarly, is a trip over cracks, holes or any uneven surface in violation of building code or negligence in maintenance of the premise causing the person to trip and fall resulting in injuries.
Rolling Tumbling Down
It is fun to roll around if you are in an amusement park riding inside one of the amusement rides. The rides are designed to tumble and there are safety harness or other precautions present during the rolling and tumbling of the rides. In essence, those rides are meant to roll and tumble and turn to the joy of the thrill seekers.
Speed Demon, Not a Turn On
Car accidents happen every day regardless of time, place or weather conditions. In California, where car enthusiasts are everywhere, car accidents are even higher. There are a lot of people who are not content with the muscles under the hood of their cars.
Pedestrian Accident Lawyers
It is said that over 100,000 pedestrians are injured each year in the United States alone. Almost half of those involved in the accident are killed.
Pedestrians are exposed to hazards everyday. They have no protection against vehicles. Even if a pedestrian is hit by a slow moving vehicle, chances are, the injuries are not that minor.
Factors That Contribute to Drowning Incidents
Drowning incidents also account for some of the fatalities in children and adults alike. Especially during summer or hot season, people tend to frequent pools and other recreation water areas.
Rules to Remember in Operating Your Bicycles
Do you know that you should ride as close as practicable to the right curb or edge of the road when you are driving your bicycle and traveling slower than the normal speed of traffic moving in the same direction?
However, there are exceptions to this rule and these exceptions are as follows:
Dog Handler’s Reflections
Are you planning to have a pet dog? Do you know how to properly handle and take good care of them? Although plenty of us are very much aware of the fact that dogs are one of the greatest pets, yet some do not even know how dangerous a misbehaving dog is. However, a number of pet lovers still opt to take care of at least a breed of dog in their own homes without being mindful of the legal liability they may face in case their dogs have bitten a person. Before deciding of owning a dog, maybe you should reflect of the following.
Beyond Structured Settlements
Commentary about structured settlements and special needs settlement planning.
Spencer v. Hartford - 10
United States District Judge Janet C. Hall has approved a $72.5 million preliminary settlement of the Spencer v. Hartford structured settlement class action lawsuit impacting thousands of persons who received Hartford structured settlements from January 1, 1997 to June 7,...
Spencer v. Hartford - 9
If you are a defendant or liability insurer or re-insurer or structured settlement annuity provider re-thinking your structured settlement business practices following the Spencer v. Hartford class action lawsuit and Hartford's publicly announced proposed settlement, you should read a recent...
Spencer v. Hartford - 8
If YOU are a defendant (or insure or represent defendants), how do YOU save money using structured settlements - post Spencer v. Hartford? What are your structured settlement risks - if you don't fully disclose your structured settlement business practices?...
Spencer v. Hartford - 7
What are the critical questions for defendants (and your insurers and your re-insurers and your attorneys) resulting from the proposed settlement of the Spencer v. Hartford class action lawsuit - assuming YOU, as a defendant, participate in funding structured settlements?...
Spencer v. Hartford - 6
Why and when should defendants, and/or their insurance companies and/or their reinsurance companies, ever agree to fund a structured settlement using either a "buy and hold" strategy or an "IRC section 130 qualified assignment" - as opposed to paying cash...
SSP and NSSTA 2010 Annual Meetings - 9
The Society of Settlement Planners (SSP) and the National Structured Settlement Trade Association (NSSTA) should be congratulated - especially immediate past-Presidents Joseph Tombs and Daniel Durbin - for excellent 2010 annual meetings. S2KM's complete coverage of the SSP and NSSTA...
SSP and NSSTA 2010 Annual Meetings - 8
NSSTA scheduled something totally unexpected and outrageous for its 2010 Annual Meeting. NSSTA invited Dan Clark to discuss NSSTA, the structured settlement industry and ethics. When has NSSTA and/or the structured settlement industry ever engaged a better or more timely...
SSP and NSSTA 2010 Annual Meetings - 7
Tax laws and tax policy are critically important for structured settlements. Based upon interviews he conducted with structured settlement industry leaders, Jeremy Babener states in his recently published article about "Structured Settlements and Single-Claimant Qualified Settlement Funds": "It seems roundly...
SSP and NSSTA 2010 Annual Meetings - 6
This S2KM blog post is the first of two S2KM blog posts about the SSP and NSSTA 2010 tax panels and is also part of S2KM's blog series about the SSP and NSSTA 2010 annual meetings. The SSP and NSSTA...
SSP and NSSTA 2010 Annual Meetings - 5
One of the highlights of the NSSTA 2010 Annual Meeting was witnessing NSSTA's lobbying strategy and the resulting association contacts between NSSTA members and members of Congress and their staffs. NSSTA, and the structured settlement industry, have benefited historically from...
Journal of Tort Law
Copyright (c) 2010 Berkeley Electronic Press All rights reserved.
Three Models of Constitutional Torts
A Watershed Moment: Reversals of Tort Theory in the Nineteenth Century
Operationalizing Deterrence: Claims Management (In Hospitals, a Large Retailer, and Jails and Prisons)
Benefits of Comparative Tort Reasoning: Lost in Translation
Defending Torts: What Should We Know?
Qualitative and Quantitative Research on Tort Law Topics: A Comment on Helland & Klick and Kritzer
The Tradeoffs between Regulation and Litigation: Evidence from Insurance Class Actions
Comparative Law - A Must in the European Union: Demonstrated by Tort Law as an Example
Toward A Unified Theory of Torts
Personal Inviolability and "Private Law"
Tort Law in a Liberal State
The Uses of Accident Law's Past
Contingency, Immanence, and Inevitability in the Law of Accidents
Why the FDA Must Preempt Tort Litigation: A Critique of Chevron Deference and a Response to Richard Nagareda
FDA Preemption: When Tort Law Meets the Administrative State
Liability Externalities and the Law: A Comment on Cooter and Porat
Liability Externalities and Mandatory Choices: Should Doctors Pay Less?
Foreword
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