Legal Question in Personal Injury in Maryland

Re: structured settlement

Because they can reduce their initial payout by purchasing an annuity that will pay the injured party over a number of years. This may or may not be in the interest of the injured party, depending on the facts of the case and who the injured party is. You can contact me for further information.

Re: structured settlement

It is possible that they are attempting to reduce the overall settlement. It could be that the company wants to apply the loss to future periods and thereby manage their reserves, enhance their ability to raise premiums, or some other business purpose. Or it could be the claim is such that there are legal reasons that better protect the injured party and thereby protect the company.

I would need to discuss the facts relating to the claim and the settlement. It is quite possible that the settlement offer is not sufficient and the company is attempting to provide a basis to protect the offer.

Re: structured settlement

To answer this question, I would have to know: (1) is it a minor that is settling?; (2) is the claimant non compos mentis?; (3) is the claimant someone who is apt to spend the money away quickly; (4) is it a little settlement that they are trying to make bigger? (5) is it a large settlement that they are taking some money towards a structure and the rest now?

The money the structure makes is not taxed if you do not have "constructive receipt" of it at the time the structure is purchased ["Constructive receipt" as defined by the IRS]. BUT REMEMBER there are huge penalties for later taking the money out of a structure if you are able to do so.

Perhaps the posed questions have answered your inquiry. If not, you may email me confidentially.

Good luck!