What is a structured settlement work?
How does a structured settlement work?
A structured settlement is where you are paid a lump sum over time as opposed to all at once. For example, you gain a million dollars. If you are paid through a structured settlement, you are guaranteed a certain amount of money each month for life, and as well, it may be beneficial to you when tax time rolls around. The downside is if you die before the money is gone, it is non transferable to anyone else in your family.
A lump sum payment means Uncle Sam has his hands out before you even see your money, but at least it is yours and you can pass whats left on to others when you die.
Your best bet if you are coming into a substantial amount of money is to speak to an attorney first. Many offer a half hour or an hour free service.
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