Annuity

An annuity, in reference to a structured settlement, denotes the period of time over which the settlement is to be paid. The total worth of the settlement must be dispersed within this time frame.

Documents

Several documents must be processed through the appropriate means for a structured settlement to be valid. These include: an annuity application, an annuity policy, a qualified assignment, and a structured settlement agreement.

Taxes

Taxes usually do not have to be paid on structured settlement payments. This is because the insurance company usually deducts these before disbursements are awarded.

Legal Advice

The processing of a structured settlement usually involves a number of complicated steps. It is highly advised that you contact a lawyer to make sure all the documentation gets processed properly and you are not being put at a disadvantage due to the language of the documents.

Minors

Anyone under the age of 18 must have a legal guardian handle the process of setting up a structured settlement. Most minors are not allowed to begin receiving payments until their 18th birthday.

Source:

Structured Settlements

Resource:

Structured Settlements Guide

Creative Capital