Structured Life Settlements 101

The term structured life settlement is usuallysome cases are even exempt from taxes
applied to a personal injury settlement of somealtogether. Although they are called life
type whereby an agreement has been reached tosettlements, some of them can be structured to
pay the settlement over an extended period ofextend for a certain time period regardless of the
time rather than in a lump sum payment. The idealife span of the person receiving the settlement.
of life time settlements has grown more popularThe remaining payments would be made to a
over the last few decades as research haspersons beneficiaries or his estate in case of his
shown that a very high percentage of peopledeath. It is always advisable to have an attorney
who receive large lump sum windfalls either aswith experience in life settlements review the
injury settlements or lottery winnings tend todetails to insure that the total payments are not
have very little or any cash left after five years.considerable under the original reward amount. An
Another advantage of structured life settlementsattorney can also advise on the tax liabilities of
is that they usually are given tax breaks, and inany decision.