by 
The Curious Bag
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Structured settlement is a way to pay money form a settled lawsuit. Instead of getting one payment of the full settlement, you get smaller payments spaced out over several years.
Features
After a lawsuit is settled, the money is placed in an annuity that will pay out over a certain number of years. You can choose the amount and time of the payments. The money earns interest in the annuity.
Income
Structured settlements are usually received from cases in which the plaintiff has been severely injured and may be disabled. The settlement thus serves as the missed income for that household.
Function
Structured settlements are also a way to avoid paying the full amount of taxes on the money. The smaller amounts are taxed, if at all, as the money is received from the annuity. It is also a way to ensure funds for future medical expenses.
Ending It
Structured settlements can be sold to receive the balance of the settlement owed to you. You will not get the full amount of your settlement in this arrangement, however. Before doing so, contact the National Structured Settlement Association for information.
Considerations
Selling the annuity attached to your structured settlement may not be legal according to the terms of the original settlement.
Source:
Expert Law: The Structured Settlement
Internal Revenue Service: Excise Tax--Structured Settlement Factoring
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