A structured settlement is designed by Congress as a tax-free payment. Choosing a structure as a settlement option in a personal injury claim provides tax-free income, financial security, payment flexibility, guaranteed income, and income for life.

“We try to go beyond the monetary resolution…the comfort of knowing that a client who has a very catastrophic loss, when they’re involved in a structured settlement…they are going to be set for the rest of their lives.”

Derek Sells, The Cochran Firm, Advocate for Victims Rights

The Ability to Change People’s Lives

The Benefits of Structured Settlements

Congress designed structured settlements to be tax-free to reduce the risks of receiving a lump sum payment. Many attorneys and courts view a structured settlement as a powerful planning tool to ensure settlement monies are available for long-term needs.

The Benefits to Structuring the Settlement in Personal Physical Injury Cases:

TAX-FREE INCOME—according to 104(a) of the IRS codes, all payments from a structured settlement are completely free from federal and state income taxes.

FINANCIAL SECURITY—structured settlements are funded with annuities from the highest rated life insurance companies.

FLEXIBILITY—the claimant receives payments tailored to his or her future needs.

PEACE OF MIND—a settlement annuity can provide fixed guaranteed income that meets the claimant’s life-long needs.

For more information on structured settlements and their benefits, click here to contact us.

DISCLOSURE STATEMENT: Information contained herein is not intended or written to be used, and cannot be used, as legal advice or for the purpose of avoiding any tax penalties. This website is written to be educational in nature and support the promotion or marketing of the transactions or matters discussed. Please consult with an attorney or independent tax advisor as to how any of this information may apply to your specific circumstance.