Capital Protection
Capital Protection
Capital Protection For You
The structured settlement makes it possible to have guaranteed income that never runs out. If you design your structure to provide lifetime payments, tax-free payments will be paid for as long as you are alive, regardless of how long that is. The payments are unaffected by downturns in "the markets".
With a lump-sum settlement, if the money you need is more than the income your investment creates, you will have to cover the shortfall some other way. Low or negative returns and unplanned withdrawals can exhaust your funds - yet your needs continue.
Capital Protection For Minors
If the settlement is for a child under the age of majority (a "Minor"), funds are usually placed on deposit with the Court. All of the money is then turned over to the child upon attaining the age of majority - to spend as he sees fit. If you fear your 18 or 19-year-old may lack the financial maturity to handle such a lump sum, structuring is an effective solution. A structured settlement can provide some money at the age of majority and spread the rest over a chosen period of time. This can provide tax-free money for education or to supplement lower earnings during early years in the workforce.
