Propoli Financial   Analyzing Structured Settlements, Lotteries and Annuities

There are occasions when a plaintiff settles his case for a large amount of money that is to be paid to him over time rather than all at once. A settlement paid in this manner is called a structured settlement. It can be paid in a variety of ways, including annual installments for several years or in periodic lump sums. This type of payment is popular with defendants for two reasons. First, there are tax advantages in paying a settlement this way. Second, by purchasing an annuity to pay the settlement, the defendant can sharply lower the amount it costs him to settle the claim.

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