Do I have options for how I receive my payments?
FAQ: Do I have options in how I receive my payments?
Most structured settlements will provide monthly income for the rest of your life, or for a certain period of time. An annual cost of living adjustment can be included. Your payments can begin immediately, or the start date can be deferred until a time in the future, when you can best use the funds. They can include a provision for your spouse to continue receiving tax-free payments if you die before he or she does. A portion of your settlement can be taken as COLLEGE FUNDS for your children, or RETIREMENT INCOME for yourself. You may also include some large future lump sums paid in five, ten, fifteen, or more years in the future.
The main thing to remember is that all of your payments will come to you tax free, but must be part of the final settlement documentation that you will eventually sign concluding your lawsuit. You have a unique opportunity to have your payments designed in a way that meets your financial goals and needs, but this opportunity will cease once your case is fully settled. It is a good idea to work with your attorney and the structured settlement consultant to design a settlement that is best for you and your family and complies with Internal Revenue guidelines.