What is a Structured Settlement?

Your only exposure to the term “structured settlement” may be late night TV ads hawking immediate access to your money. “It’s your money,” they’ll exhort. “Cash in your structured settlement and use your money now!” If you are (or were) a successful plaintiff in a lawsuit, your contact with structures may be more personal. You may have received one, be evaluating one now, or have considered one but opted for cash.

But what should you know? Even if you already have one, you may not know how they operate and why they’re set up in the arcane fashion they are. Like so much else in the world, structured settlements are mostly about taxes.