A structured settlement is a specific resolution of a case that pays out the settlement amount as an annuity rather than in a lump sum, which can certain tax implications for the recipient and savings for the payer. Generally, a settlement, including a structured settlement agreement, requires a party to end a lawsuit in exchange for an agreed upon amount of money and/or other nonmonetary conditions.
While structured settlements are often used in personal injury cases, particularly in circumstances involving permanent or catastrophic injury, it is a concept that is not widely discussed or understood. In fact, the Indiana Supreme Court candidly noted that “[a] lay person…may have no understanding of what a structured settlement is or that it is a possibility.” In re Hailey, 792 N.E.2d 851, 859 (Ind. 2003). Before accepting any settlement agreement, it is important for an individual to speak with an experienced personal injury attorney and/or an account to fully discuss and explore all of an individual’s legal options and tax consequences.
Looking for an experienced attorney that understands your rights? Contact the attorneys at Keffer Barnhart LLP today if you have questions or want to discuss your potential case. We stand ready to provide our clients with trusted representation and accurate information regarding the law and its application to their individualized case. Act now and contact us today at 1-800-NOT-GUILTY or (317) 857-0160.