Suffering from a serious accidental injury can be a life-altering experience. Victims are often no longer able to work and provide for their family. That’s why the federal government amended the tax code in 1982 to allow injured individuals (or beneficiaries in wrongful death cases) to receive their settlement funds in guaranteed, tax-free payments through structured settlements.
Since their inception, structured settlements have become a sound financial strategy for millions of individuals and their families. They are able to live their lives without fear that market downturns or other economic conditions will erode this important source of income.
The National Structured Settlements Trade Association (NSSTA) has published an easy-to- understand brochure that talks about structured settlement safety, how structures stack up against investments such as bonds and compares their tax-free status to taxable investment income. It’s an excellent explanation of structured settlements and could be helpful to clients considering a structure as a settlement option.
Visit this link to view the brochure. For any questions about structures, please give us a call.