Understanding Structured Settlements
A structured settlement is a financial arrangement where you receive periodic payments over time, typically resulting from a legal settlement. These payments are:
- ✅ Tax-free under federal law
- ✅ Court-approved and secure
- ✅ Customized to your needs
- ✅ Protected from market volatility
How Structured Settlements Work
When you receive a structured settlement, your settlement amount is converted into a series of guaranteed payments. These payments can be scheduled:
- Monthly payments for regular income
- Annual payments for long-term security
- Lump sum payments at specific dates
- Combinations of different payment schedules
The payments are typically funded through an annuity, which is a financial product that guarantees your payments over time.
Benefits of Structured Settlements
Key Advantages:
- Tax-free payments under federal law
- Guaranteed income stream
- Protection from market volatility
- Customizable payment schedules
- Court-approved security
Common Questions About Structured Settlements
Yes, you can sell your structured settlement. The process is legal and requires court approval to ensure it's in your best interest. Learn more about selling your settlement.