A structured settlement is an innovative solution to receiving benefits over a designated time frame available specifically for personal injury victims, wrongful death, and Workers’ Compensation claims. The injured victim has the option to receive all or a portion of compensation from their settlement in a series of guaranteed tax-free payments custom designed to meet their future needs. They have the flexibility to receive any combination of a lump sum for immediate needs and designated payments for long-term necessities.
A long-term structured settlement has several advantages: providing security, guaranteed long-term income, and precious tax advantages. The federal tax code provides that 100% of structured settlement payments are exempt from federal taxes.