A structured settlement is an agreement that allows a plaintiff to convert a lump sum payment into a stream of many smaller payments (annuity payments). It is extremely important for an attorney to consider the tax treatment of his client’s structured settlement because otherwise it could result in malpractice liability. Indeed, many practitioners strongly believe that this liability cannot be drafted away in an engagement letter.
What are structured settlements? was last modified: April 16th, 2019 by Tax