Misconceptions About Structured Settlements
When settling a lawsuit, such as a personal injury, wrongful death, or other similar lawsuit, many plaintiffs can opt to get their settlement money in payments over time through a structured settlement instead of in a lump sum. There are many misconceptions around structured settlements, as not everyone is familiar with this financial option. The payment arrangements of structured settlements are able to be tailored to the plaintiff’s specific financial and personal needs. Structured settlements are a favorable option for many plaintiffs but are not considered as often as they should be, due to misinformation around how they work. Check out these major misconceptions about structured settlements.
Myth: only minors and disabled adults stand to benefit from structured settlements
While structured settlements are beneficial to minors and disabled adults, others can also benefit from them. Most plaintiffs, even those with well-established financial portfolios, have not managed money in the amount of their settlement before. Structured settlements help plaintiffs manage their settlement monies and ensure the funds last.
Myth: structured settlements cannot be customized
Many plaintiffs and attorneys are resistant to the idea of structured settlements because they are concerned the specific settlement plan won’t aptly address the plaintiff’s needs in the present. Structured settlements can be completely customized to fit the plaintiff’s financial needs in the present and adjust for predicted needs in the future. Working with a settlement planner is a great option for those unfamiliar with how structured settlements work. A settlement planner will take a plaintiff’s entire financial and personal situation into account before creating a plan to best serve their needs.
Myth: structured settlements should only be considered for large settlement amounts
Plaintiffs with large settlement amounts, $500,000 or more, benefit greatly from structured settlements, but plaintiffs with smaller settlement amounts should not write off this financial option. Even with settlements under $500,000, plaintiffs can benefit from structured settlements, as they help the plaintiff manage settlement monies and ensure that the money lasts to cover expenses over a longer period of time.
Structured settlements can be an advantageous option for many plaintiffs, and even attorneys with no experience helping their clients set them up can guide them in the right direction with the help of an experienced settlement planner. Milestone can help attorneys and their clients navigate the misconceptions and come up with a plan that best fits each plaintiff. Contact Milestone today for help with settlement planning services, qualified settlement fund services, and more.