Structured Settlements  

If you agree to take your award as a structured settlement, instead of receiving one large amount from the plaintiff, you will receive periodic payments over the course of a fixed number of years. For example, if you win $500,000, your structured settlement might require the defendant to pay you $50,000 every June for ten years.

You can design a structured settlement so that it provides money when you need it most. Here are a few options.

Large initial payment. Say you’ve been unemployed for some time and your bills are mounting. You can design the structured settlement to provide a large initial payment so that you can pay overdue bills, pay off a mortgage, or purchase needed items like a new car. The smaller subsequent payments could then act as a substitute for lost income.

Additional amounts for extraordinary expenses. Some settlements are designed to provide a yearly income, with additional amounts allowed to pay extraordinary expenses like college tuition.

Payments increase over time.
Structured settlements can also be designed to step up payments over the years—starting relatively low and ending higher.

Payments decrease over time. Structured settlements can also start high and decrease over time. This might be of benefit if you expect your income to increase over time.

Delayed payments. Some plaintiffs even choose to delay payment of their awards until they reach retirement.

Types of Structured Settlements

Market-Based Structured Settlements

Sage Settlement Consulting is committed to providing plaintiff attorneys and their clients with innovative financial solutions. To that end, we work with reputable partners to provide market-based structured settlements as an alternative to or in combination with life insurance-based structured settlement programs.

Why Choose a Market-Based Structured Settlement?

Many claimants and attorneys find that market-based structured settlements provide the opportunity to receive tax-free income or tax-deferred income while enjoying market-driven growth potential.

Within a market-based structured settlement, there is considerable flexibility of design to allow for individualized planning with no contribution limit. Market-based structured settlements can work in conjunction with structured settlement annuities to create a truly balanced settlement solution.

Market-Based Structured Settlements for Claimants

Market-based structured settlements for claimants operate much like structured settlement annuities, yet with a market-based investment portfolio serving as the financial vehicle, rather than an annuity.

Claimants who elect to place their personal injury settlement proceeds in a market-based structured settlement will enjoy the same income tax-free treatment associated with structured settlement annuities.

Claimants who utilize market-based structured settlements for non-personal injury settlement funds will have the opportunity to defer taxes on their payments until the years in which the payments are received. Investments can be managed by a reputable financial institution or by the claimant’s financial advisor.
Market-Based Structured Settlements for Attorneys

Market-based structured settlements allow attorneys to invest their contingency fees in a portfolio with tax-deferred, market-related returns. As is the case with market-based structured settlements for claimants, the funds can be managed by a financial institution or by the attorney’s own financial advisor. Payments will be received on a pre-determined periodic payment schedule, with tax obligation being spread out over the course of the payments.