Most often, the best option for a settlement plan is a "structured settlement." This is an extraordinary financial tool, rendered tax free via statute created by Congress exclusively for injured people. Here is how it works: instead of taking all of the money you receive from a personal injury lawsuit as one lump sum, you choose to put some or all of that money into a structured settlement. Regular payments are then made over a specified period of time to match your future needs and goals.
The financial advantages of a structured settlement are significant:
Guaranteed – Payments from interest-earning annuities are backed by the nation’s top-rated life insurance companies.
Tax Free – You and your dependents receive a 100% lifetime exclusion from income, dividend, and capital gains taxes on the payments from the structured settlement.
Customized – Powerful planning and financial tools help us create a structured settlement that is a perfect fit for you and your unique circumstances.
No Risk, No Fees – Returns are NOT subject to the whims of Wall Street or poor financial management. There are also no management fees.
The Right Solution for You
Structured settlements apply to a wide variety of injury cases regardless of how much money is involved. In fact, many settlement plans designed by Cornerstone are for less than $50,000. You should consider structured settlements for any personal injury, workers’ compensation, or medical malpractice cases involving:
Long-term medical needs
Temporary or permanent disabilities
Minors or the mentally incompetent
Severe injuries that result in brain damage or shortened life expectancy
Surviving spouse and/or dependents
The money is distributed in whatever fashion works best for you: future lump sums on specified dates; over a set period; over a lifetime; monthly, quarterly, semi-annually, annually; in level or increasing payments; or in some combination of these options.
Most people start by guaranteeing critical obligations first, including replacement or supplemental income, tuition payments, mortgage payments, retirement income, and ongoing medical expenses. Then other needs are considered, like a down payment on a new home or car, remodeling projects, attorney fees, major tax bills, vacation planning, etc.