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Banks may also hold large sums for several days to ensure the deposit is lawful. In most cases, compensation from settlements is received within six weeks after negotiations complete.

Generally, when you settle a claim, it is truly over.The auto accident settlement amounts will not generally categorize what amount was specifically for pain and suffering, medical bills, or wages. Everyone that is owed money from the case will be paid from those proceeds.

Put simply, a structured settlement is not a loan or a bank account, and the only way to receive money from your settlement is to stick to your payment schedule or sell part or all of your payments to a reputable company for a lump sum of cash.

If you receive a structured settlement instead of the $300,000 cash, you'll get payments over a term of years or your lifetime (however you choose), and each payment is fully tax free. Thus, a structure converts your after-tax earnings into a tax free return.

Structured Settlements are an innovative method of compensating injury victims.Under a structured settlement, an injured victim doesn't receive compensation for his or her injuries in one lump sum. They will receive a stream of tax-free payments tailored to meet future medical expenses and basic living needs.

How Is a Settlement Paid Out?A structured settlement can be paid out as a single lump sum or through a series of payments. Structured settlement contracts specify start and end dates, payment frequency, distribution amounts and death benefits.

When the defendant and the plaintiff in a lawsuit agree to settle a claim with a structured settlement, the parties negotiate a cash amount payable by the defendant in exchange for the plaintiff dropping the lawsuit. The money is distributed as a series of periodic payments, typically funded through an annuity.