A structured settlement in Fort Worth works in a simple way. Many lawsuits result in some form of compensation to an aggrieved party to right a wrong. The person or company responsible for the wrong may agree to pay the compensation on his own or after losing a lawsuit. WePayMore Funding may arrange structured settlement annuities for parties in a suit.
How does a structured settlement work?
A structured settlement is an arranged payment for sums of money received as compensation for a lawsuit. The money is usually paid periodically through an annuity. However, some legal settlements may be made as lump-sum payments.
The main difference between lump-sum payment and structured payment is the tax implications of each. Compensation from personal injury lawsuits, for example, are usually tax-free. However, once the compensated party receives the money, he has to pay taxes and dividends on the lump sum.
Cases that provide structured settlement
Individuals may receive a structured settlement from personal injury cases, medical malpractice, wrongful death, and workers' compensation.
In a personal injury case, an individual who has been harmed seeks compensation from a person believed to cause them harm. Funds obtained from a structured settlement may help to pay the wronged person's medical expenses and other costs.
Many people are aware of workers' compensation insurance that covers medical expenses and wage loss for workers who have been injured at the workplace. On the other hand, wrong parties can also get a structured settlement for medical malpractice. Patients who have been harmed by medical professionals can sue them for medical malpractice.
A structured settlement may also be offered to families whose loved ones became victims of wrongful death. The payment for wrongful death is usually tax-free and is provided to cover lost income after the death of a loved one.
How are you awarded a structured settlement?
Structured settlement cases usually involve the plaintiff (wronged party), the defendant (the one who caused the harm), a qualified assignee, and a life insurance firm. The process for awarding structured settlement starts when the plaintiff sues the defendant and seeks compensation for damage caused.
In some cases, the defendant may award money to the plaintiff to prevent the case from going to trial. However, if the case goes to trial, the judge may decide whether the plaintiff deserves compensation. If the judge decides to reward the plaintiff, a structured settlement can be arranged to allow the defendant to pay for damages.
The qualified assignee works with the defendant and plaintiff to determine the terms of the compensation, including the size of payments and how long the payments should continue, among other terms.
Once the defendant and plaintiff agree on the terms of the structured payment, the qualified assignee sets up an annuity on behalf of the plaintiff. The assignee buys the annuity from a life insurance company.
The annuity is required to accommodate the terms of the settlement. The terms of the annuity cannot be changed once they have been set up.
WePayMore Funding has helped many people in Fort Worth, TX, to set up their structured settlements. Call us to learn more about our structured settlement process.Structured Settlement Fort Worth