Pros and Cons of a Structured Settlement
Like all else, structured settlements have both advantages and disadvantages. A key advantage is the tax benefits associated with a properly established settlement. A properly structured settlement could very well reduce the applicant's tax obligations. In some cases, the settlement could avoid taxes.Another advantage is that the structured settlement could also prevent an applicant from spending all their money at a time. In this way, the structured settlement could be a kind of financial control. Instead of getting the money all at once and risking spending much of it on unnecessary or reckless transactions, periodic payments for a structured settlement will help the applicant pay the costs.
Needed before they spend money on other things.
However, this advantage could very well be considered a disadvantage to many. Some people want to make big purchases, such as a car or a house, and may prefer a large lump sum once for periodic payments. Even if they do not have desires for expensive purchases, some people may just feel that they would do better if they could invest their money themselves.Essentially, for those who may have trouble managing a large sum of money, structured institutions offer a simple and useful way To avoid dispelling the cash recklessly. However, for applicants who are able to manage money well on their own, periodic payments can be a nuisance.
Source by Jason Hahn
