Structured settlements - information for injured people

What is a structured settlement?

A structured settlement is the result of an agreement between the parties to a personal injury case. A personal injury case may arise from medical negligence, sporting accidents, motor vehicle accidents, and public liability or product liability. The parties to the case will generally be you or your legal personal representative (for example a trustee or person with your general power of attorney), the defendant (who is the person or organisation you are seeking compensation from), and in most cases the defendant's insurer.

A structured settlement will enable you to take all or part of your personal injury compensation in the form of tax exempt or tax-free periodic payments, rather than a single immediate lump sum payment. Once a structured settlement has been arranged you can't change it or cash it out for a lump sum. The components of a structured settlement are outlined in this fact sheet.