Free Case Evaluation
Fill out the form below to schedule a free evaluation.
Settlement Tax Facts You Need to Know
Your life was turned upside down due to personal injury or medical malpractice but you didn’t give up. You took matters into your own hands, filed a lawsuit, stuck it out and were victorious – you secured a great personal injury settlement. Way to go!
Now wouldn’t it be a shame, after your amazing journey, to short change your hard-earned settlement money?
If you are like most people you want your personal injury settlement money to not only last but to grow, right?
If there was a special tax exception only available to personal injury and medical malpractice victims wouldn’t you want to take advantage of it? Then you will want to learn about structured settlements – also called structured annuities.
When you obtain a personal injury or medical malpractice settlement you have two options. Your first option is to take your settlement as a lump sum (i.e. a check for the full amount of their settlement). Your second option is to invest some or all of your settlement in a structured annuity that will pay out chunks of money over time at a guaranteed interest rate.
When you opt for the annuity, you enter into a contract with a life insurance company. You give the insurance company a lump sum payment up front. In return, the insurance company provides you regular money distributions at a guaranteed interest rate over a period of time in the future.