This category of claimants is often thought of when mentioning structures. Many personal injury claimants are competent adults with little or no expertise in handling large sums of money. Whether they have proven to be a spendthrift or not, most people with no real financial experience are not well suited for cash settlements. Human nature is such that our lifestyles typically adjust to match our finances. We’ve all seen this statement to be true with athletes, beneficiaries, and lottery winners. Many studies have been conducted on the matter. Unfortunately, it's just the way most of us are wired.
Even if a claimant doesn’t become a spendthrift, they still may succumb to unwise investment decisions. The average person learns about investments as they go. Should they lose money in a bad investment, they may learn from that loss and not repeat it with the next investment. Settlement recipients may not have another investment. Their settlement proceeds may be the one and only sizable check they ever receive. Structures help protect that sum.