Structured settlements (part 2)

January 24, 2011 @ 12:21 PM -- by

These are some of the reasons against structured settlements. Having been a Corpus Christipersonal injury attorney for a number of years, I have seen that the pros of structured settlements far outweigh the cons. Here they are:

Sometimes you just want all the money right away to blow on cars and possessions and to help long-lost family members. This is not a good idea, as you may run out of money soon.

You feel that you have the training, discipline and expertise to control your own money. Perhaps you have a trusted financial planner that will help you.  This happens, just on rare occasions that I have seen.

You or a loved one has continuing medical bills which have to be paid.

When the injured plaintiff retains too much control over the money, the Internal Revenue Service might determine that the tax benefit has to be forfeited. This does not happen very often.

The person receiving the proceeds may fear that unknown bad changes in the economy might make the annuity payments too small for their needs. Usually, of course, these changes are factored into the annuity.

On rare occasions, an annuity may be placed with brokers who are not sufficiently protected from bankruptcy.

In general, insurance companies try not to disclose how much they will pay when buying an annuity covering the settlement. A structured settlement will usually cost the insurance company a lot less than a lump-sum settlement. Of course, you can get a lump-sum settlement, then have your lawyer get you in touch with someone who can structure some of the money.

Contact Corpus Christi personal injury lawyerScott Nelson if you or a loved one has been injured and needs assistance.