What is a structured settlement?

A structured settlement is a type of financial agreement where one party, usually an individual or company, agrees to pay a settlement amount to another party over a period of time. This type of agreement is often seen in courts in the state of Tennessee when an individual has been injured in an accident or when a company has to pay out damages. In Tennessee, a structured settlement must be carefully crafted and approved by the court. The settlement agreement must specify both the total amount of money to be paid and a schedule for payments. The payments can be as often as the court deems reasonable and the plaintiff may choose to receive the settlement in either a lump sum or installments. Structured settlements are often advantageous to plaintiffs because they do not have to pay taxes on the full settlement amount and they receive payments over a period of time. This also offers security in that the settlement amount is no longer exposed to the whims of the market, and is certain to be paid out in full. Structured settlements are also potentially beneficial to defendants, as they can spread out their payments over time and avoid paying out the full settlement in one lump sum. Overall, structured settlements are a useful form of compensation for both parties in accident law cases. They offer financial security and assurance while taking into account the unique needs of both the plaintiff and the defendant.

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