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What are the upsides of a structured settlement?

When you or a loved one has been injured, the immediate thought is getting the injured person back to good health. This is entirely normal, but after the person’s health has stabilized enough to worry about other facets of life, financial responsibilities often start to set in and people wonder about how to pay the bills. When another party is believed to be responsible, it may be worthwhile to seek damages for their involvement in causing or contributing to a person’s injury.

When it comes to medical injury, there are literally endless ways in which a person can be injured by a negligent physician, hospital or related-third party. Sometimes it can be a medical device or tool that malfunctions, causing injuries. These instances aren’t always immediately clear as to who is responsible, as sometimes multiple parties are responsible. Seeking damages against the negligent parties can be the best way to recover financial compensation.

“Structured settlements” are usually tax free, meaning that the tax burden would be removed from the injured person’s concerns. These settlements can arrange for a number of settlement payments over a set amount of time, like 30 years. Also, a structured settlement may help parties who are far apart in their settlement negotiations to reach an agreement acceptable to both the plaintiff and the defendant. While this may seem like a far-fetched conclusion, oftentimes the parties are able to negotiate an arrangement that is acceptable to everyone.

Since verdicts can take longer to achieve and take more effort and resources, this also makes structured settlements an attractive option. However, to qualify for even one of these outcomes, the injured person, or someone on the injured person’s behalf, would need to file a claim alleging negligence. Lump sum settlements differ in that they are paid in one, or in a small number, of installments. Structured settlements are more of a long-term option for Allegheny County residents who have been injured due to medical malpractice.

Source: injury.findlaw.com, “Structured Settlements: Pros and Cons,” Accessed September 18, 2017