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What are Structured Settlements?


Structured settlements are scheduled payments made to a plaintiff who wins a judgment or settles a lawsuit entirely in court.

How a Structured Settlements Works

When the plaintiff and defendant in a lawsuit agree to resolve a claim with a structured settlement, the parties agree to a cash amount given by the defendant in exchange for the plaintiff shelving the lawsuit. The funds are dispersed as a cycle of payments over time, usually furnished through an annuity instead of a lump sum.

Structured Settlement Negotiations

The procedure for settling a civil case through a structured settlement entails the defendant, the plaintiff, a life insurance company, and a consultant knowledgeable in these cases. The defendant is the person who caused the harm, the plaintiff is the individual who has been wronged, and the consultant is the experienced assignee.

Structured Settlement Case Types

Structured settlements may be offered in any type of legal case in which a defendant gives a monetary award to a plaintiff. Some of the various case types where a structured settlement could be applicable are:

  • Wrongful death
  • Vaccine injury
  • Workers’ compensation
  • Discrimination
  • Medical malpractice
  • Large-scale group molestation/sexual abuse
  • Personal injury

A knowledgeable attorney could offer insight into whether a structured settlement might be an available way to settle a claim.

Structured Settlements Payout Options

Structured settlements may be arranged in various ways contingent on the arrangement with the defendant and the plaintiff’s payment requests. Typical arrangements for structured settlements could include:

Huge first payments: If accident victims have amassed significant expenses, like extensive hospital bills, they could set up a structured settlement with a big lump sum payment up front and then lesser recurring payments later.

Delayed payments: In certain cases, plaintiffs request to postpone receiving the settlement money until later in life. This allows payments to begin at a specified time.

Extra payments: Sometimes, a structured settlement will provide a specific amount of money on a fixed schedule but will grant extra payments to be made to take care of extra expenses.

Increasing payments: Some structured settlements will begin with small payments and then increase over time.

Decreasing payments: Some structured settlements will do the opposite, beginning at a large amount and then decreasing as needs lessen over time.

The right type of structured settlement will be contingent on the extent of the damages, the way the money will be used, and the monetary award.

The Timeline for a Structured Settlement

The timeline for a structured settlement hinges on the original agreement with the defendant and the assignee. These settlements are typically, but not always, confirmed to last for life. Occasionally, a death benefit is given to a surviving loved one. Other structured settlements last for a certain amount of time, like 10 years.

Our Services

When you choose a Denver car accident lawyer, you are choosing a partner to help facilitate some of the most vital parts of the structure settlement procedure. At Lampert & Walsh, we offer that partnership through our dedication to providing dependable, excellent service in a profession where personal integrity is everything. If you need legal representation, contact us for a free initial consultation.

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