| If you are a personal injury victim, here are three good | | | | minors as well. Sometimes, the parents of minor |
| reasons why you purchase structured settlements | | | | personal injury plaintiffs are unsophisticated and could |
| instead of getting a lump sum settlement. | | | | waste the funds instead of saving them for the child's |
| Specifically, when you buy structured annuities, you | | | | benefit. Instead, a guardian who decides to purchase |
| avail yourself to considerable tax advantages; protect | | | | structured annuities, can set up such annuities so that |
| yourself from having funds dissipated; and, if you are | | | | the child receives periodic lump sum payments for |
| disabled, the periodic payments, combined with other | | | | college expenses, the purchase of a house and |
| estate planning options, can increase your likelihood of | | | | possibly a business. |
| Medicaid eligibility. | | | | Purchase Settlement Annuities To Pay For Future |
| Take a look at this article to determine whether or not | | | | Medical Care |
| you should purchase structured settlement payments | | | | Most personal injury plaintiffs look to buy structured |
| instead of a lump sum settlement. | | | | settlements to provide for future medical care. |
| Purchase Settlement Annuities For Their Tax | | | | Structured settlement calculators can be used to |
| Advantages | | | | predict cash needs to prepare for future medical |
| Many companies that sell these types of annuities tout | | | | needs. |
| the advantages of tax avoidance. | | | | Notwithstanding the benefits of periodic payments, in |
| While you should not base your decision to buy | | | | some cases, severely injured payment would obtain |
| structured settlements solely on tax consequences, it | | | | better benefits from a special needs trust. This is |
| is certainly a consideration. Specifically, personal injury | | | | because of the possibility that the plaintiff could be |
| payments are exempt from federal income tax under | | | | eligible for Medicaid because of the severity of his or |
| federal law. However, settlements for lost wages are | | | | her injuries. |
| subject to taxation. When you settle your claim, you | | | | A special needs trust can be structured so that the |
| may avail yourself of other tax advantages under the | | | | plaintiff can receive the benefits of a settlement |
| Federal Structured Settlement Protection Act. | | | | without being disqualified from receiving Medicaid. |
| With appropriate tax planning, such a settlement may | | | | Consult with an estate planning attorney or disability |
| provide favorable tax treatment, and may in some | | | | needs planner for more information on this particular |
| cases be tax exempt. | | | | situation. |
| Buy Annuities To Prevent Waste Of Funds | | | | Substantial Benefits To Plaintiffs When They Buy |
| Companies that sell annuities correctly advise that they | | | | Structured Annuities |
| are intended to compensate the plaintiff for injuries and | | | | As a plaintiff, now that you know a bit more about the |
| provide for future lost wages and medical care. But, | | | | benefits obtained when you purchase settlement |
| oftentimes, structuring a settlement can protect minors, | | | | payments, you can decide what is right for you. |
| incompetent persons and financially unsophisticated | | | | Specifically, you need to consider the potential tax |
| plaintiffs. | | | | advantages when you buy structured settlements. |
| Unsophisticated Plaintiffs. Face it, some people just | | | | Many companies that sell structured annuities will |
| aren't good at handling their finances. In my experience, | | | | advise that their annuities will protect the plaintiffs |
| all sorts of "shady" friends and relatives come "out of | | | | against waste, fraud and mismanagement. |
| the woodwork" encouraging the plaintiff to "share the | | | | Companies can use structured settlement calculators |
| wealth." Within a sort period of time, the plaintiff is | | | | and actuaries to develop a plan to meet the needs of |
| penniless. Encouraging the plaintiff to purchase an | | | | a minor child. Finally, although the benefits of buying |
| annuity settlement keeps the money from being | | | | settlement annuities are plentiful, there are times where |
| squandered; and, more importantly, gives the plaintiff an | | | | a special needs trust might be a better alternative to a |
| "excuse" to refuse unscrupulous friends and relatives' | | | | plan to purchase structured settlement payments. |
| requests for money. | | | | In the end, you need to consult with your attorney, tax |
| Incompetents And Minor Children. The legal | | | | advisor and financial planners to determine whether |
| representatives or guardians of minors should consider | | | | the decision to purchase structured settlements is one |
| buying annuities in lieu of cash. Many of the same | | | | that you should consider. |
| benefits to unsophisticated plaintiffs also apply to | | | | |