Understanding Structured Settlements

A Comprehensive Guide for Plaintiffs and Attorneys

Structured settlements are more than an alternative to a lump sum — they are a strategic financial and legal tool designed to provide long-term security, stability, and clarity after a personal injury settlement. By converting all or a portion of a settlement into a customized stream of future payments, structured settlements can align with a claimant’s medical needs, lifestyle, and financial goals while also satisfying court expectations in cases requiring approval.

For plaintiffs, structured settlements offer predictable income, protection from impulsive spending, and potential tax advantages in physical injury cases. For attorneys, they can strengthen case value, support mediation strategy, and help demonstrate thoughtful stewardship of client outcomes — particularly in catastrophic injury and minor matters.

A well-designed structured settlement is not a one-size-fits-all product; it is a carefully engineered plan that balances immediate needs with long-term security, risk management, and legal compliance. This guide explores how structured settlements work, when they are most beneficial, and how they can be integrated into case strategy from negotiation through final resolution.