What is a structured settlement?

A structured settlement is a payment plan for an injury or accident victim in California. It is a way for an injured person to receive a lump sum of money from a defendant who is found liable for the injuries, without having to pay taxes on the payment. The settlement is structured so that the money is paid out over a period of time, often in the form of periodic payments. This type of settlement is beneficial for both the victim and the defendant, as it allows the defendant to pay the settlement in installments and limits their financial responsibility. The settlement is also beneficial to the victim as it provides them with a steady income stream over time, allowing them to plan for their future expenses. Structured settlements can also help protect an injured individual from spending all of the lump-sum payment on frivolous items, or from having to pay high taxes on the settlement. Structured settlements in California are usually ordered by a court or legal representative and can be customized to fit the individual needs of the victim.

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