When presented with an appropriately designed structured settlement, they and their financial/tax advisors quite often opt for the structure.
Many claims managers and plaintiff attorneys overlook this claimant. That’s unfortunate. The tax-free, guaranteed, payments from a structure are often very well received by the financial savvy claimant. For financial and emotional reasons, many of these claimants consider their personal injury settlement proceeds to be money that should be protected. Quite often, this thought process leads them to municipal bonds or similarly conservative investments. When presented with an appropriately designed structure, they and their financial/tax advisors quite often opt for the structure. Unlike a bond, structures can be medically underwritten to obtain more favorable returns should the claimant be injured or have any unrelated health issues. Also, unlike many bonds, structures are not callable and can be designed for longer payouts. If they are the surviving spouse of a primary income earner, structures become even more attractive for income replacement utilizing a cost-of-living adjustment. As an additional benefit, money placed into a structured settlement may be protected under most States’ laws from creditors.
Financially sophisticated adults are often involved in aviation, medical malpractice and sometimes trucking/auto cases. However, accidents have no prejudice and may include these type claimants in any cases.