Pros and Cons of a Structured Settlement, Essays (university) of Law

Download Pros and Cons of a Structured Settlement and more Essays (university) Law in PDF only on Docsity! Pros and Cons of a Structured Settlement Subject: Law Paper 2 As with almost everything, structured settlements have both advantages and disadvantages. One key advantage is that the tax benefits associated with a properly set-up settlement. An appropriately set-up structured settlement could alright reduce the plaintiff’s tax obligations. In some cases the settlement could avoid taxes altogether. Another advantage is that the structured settlement could also prevent a plaintiff from splurging all their money all directly. during this manner, the structured settlement could be a sort of monetary control. instead of getting the cash all directly and risking spending much of it on unnecessary or unwise transactions, a structured settlement’s periodic payments will help the plaintiff with paying for necessary costs before they spend the cash on other things. However, this advantage could alright be seen as an obstacle to many. Some people want to make big purchases, sort of a car or home, and will prefer an outsized one-time payment to periodic payments. albeit they're doing not have desires for expensive purchases, some people may feel that they could do better if they were able to invest their money themselves. Essentially, for people who may have a difficult time managing an outsized sum of money, structured settlements offer a simple and helpful because of avoid dissipating the cash recklessly. However, for claimants who are able to manage money well on their own, the periodic payments could even be an annoyance.