There’s no “one size fits all” for personal injury settlement recipients. Claimants come from all walks of life. Depending on the circumstances, structures may have merit in cases involving minors, incompetent adults, financially sophisticated claimants seeking tax-exempt payments, as well as, claimants with little previous experience in managing money. It’s critical to understand who the claimant really is before mediation. Structured settlement annuities are extremely valuable tools if used properly.
In addition to the above examples, structures may be suitable in several other situations. For example, structures should always play a key role in funding Medicare set aside accounts in workers compensation settlements. For older claimants facing longevity risk (the risk of outliving one’s income), a structure may be designed to provide guaranteed payments for life. As well, structures are increasingly popular as a deferred compensation technique for plaintiff attorneys.
In conclusion, every personal injury case should be looked at closely to determine the suitability of a structured settlement. The claimant, plaintiff attorney, and defendant may benefit from a well planned strategy. Structured settlements have proven to be suitable for many types of settlements for over 35 years.