subject: Buy Structured Settlements, If You Are A Personal Injury Victim [print this page] Actually, when you buy structure settlements, you will get three main benefits. Maybe the biggest one is the tax benefit, but by buying the structured settlements you will protect your money in the future, because the sums are paid monthly. The third benefit is that when you buy structured settlements you have better chances, together with other estate planning, to get Medicaid.
1. Buy Structured Settlements, Because Of Their Tax Benefits.
The tax benefits are not of course your only reason to buy structured settlements, but it is a real benefit, which the lump sum cannot offer. If you will get structured settlements, you will avoid the federal taxes. Note, that the settlements for the lost wages are subject to the taxaton.
2. You Can Avoid The Waste Of Funds.
Those companies, which sell settlements argue, that they can compensate the plaintiff for the injuries, medical care and the future lost wages. But very often the settlements can protect minors, incompetent or unsophisticated persons The fact is, that not all people are able to manage their assets or to plan the future usage of their money.
For them the settlements are a gift from heaven, because they will get an agreed sum every month, and they cannot take loan against the program. If the personal injury victim is a minor and his or her parents cannot make the financial plans, it is wise to buy settlements to protect the future economic safety.
3. The Future Medical Care.
Many personal injury victims will buy settlements to guarantee the funds for the future medical care. In some cases better benefits can be got from a special needs trust. The idea of the special needs trust is, that a plaintiff can get the settlement benefits without disqualification from the Medicaid. You better consult with the estate planning attorney or disability needs planner.
4. The Plaintiff`s Benefits.
The main thing is of course the plaintiffs financial needs, but the plaintiff makes it wise, if he will go through all things, which come with the settlement decision. The main financial benefit is the tax benefit. But the settlements are also good tools to avoid waste, fraud and mismanagement of the funds. Check also whether the special needs trust would be the best option.
Buy Structured Settlements, If You Are A Personal Injury Victim
By: Juhani Tontti
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