Attorneys in Buffalo will occasionally be involved in personal injury cases that are resolved through a structured settlement. Simply put, a structured settlement is an agreement between the plaintiff and the defendant that the injured party will receive compensation through periodic payments instead of in one lump sum. A structured settlement most commonly occurs in cases that are settled for very large amounts of money.
There are several things for the plaintiff to consider when determining whether to enter into a structured settlement versus a lump sum payment. These include the tax implications of each type of payment and how good the plaintiff is at handling finances. Because structured settlement payments may cease upon the plaintiff’s death, life expectancy may also be a consideration.
Whether a structured settlement is to the plaintiff’s benefit hinges on the individual factors of each case. When determining whether to accept such a settlement, it is important to consult with an attorney who is not only experienced in this area, but one who will also take the time to develop an understanding of his or her client’s specific circumstances.
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