STRUCTURED SETTLEMENT ESTIMATE
Kleinick Law employes an experienced licensed structured settlement broker who can assist you if you are currently receiving compensation for a brain injury case. We represent plaintiffs in and around the New York City (NYC) area including Brookly, Bronx, and Manhattan.
There are many things to consider when it comes to structuring a settlement that is just and equitable for all parties involved in a brain injury case. The negotiation between the defendant and the plaintiff is often carried out by a structured settlement specialist. For the benefit of the plaintiff, a structured settlement specialist must design a periodic payment plan that retains the value of the judgment that was awarded over the span of time that the claimant desires.
The structured settlement process includes the following steps:
- The defendant promises to pay future periodic payments to the plaintiff with the entire amount of the negotiated damages in exchange for a release under a contract
- The plaintiff agrees to release the claim in exchange for the periodic installments promised by the defendant
- The party who is charged with paying the settlement may assign obligation to pay future periodic payments to a third party wherein the plaintiff agrees to look to the assignee for promised future payments
In a properly designed structured settlement, all monetary awards are income tax free under the Internal Revenue Code. Awarded damages, under Section 104 (a) (2), are not considered gross income. Income from damages is not subject to income tax regardless of other sources of income that you might have. A proper decision as to which form of settlement you want to receive can only be made with comprehensive knowledge of tax law and the benefits and drawbacks of a lump sum settlement and structured settlement.
The United States government designed and emphasized structured settlements as a means to help people in situations where a lump sum settlement was not in their best interests. A steady stream of income is helpful for people who were awarded damages due to injury, considering that their short term and long term needs may require different degrees of monetary assistance. As such, it is the responsibility of a structured settlement specialist to structure a settlement in such a manner that it will suit both the victim’s short term needs and long term financial goals and requirements.