What is a Structured Settlement?

There are two excellent structured settlement companies in Ontario: Henderson Structured Settlements and McKellar Structure settlements.

Henderson Structured Settlements defines structured settlements as “in essence, guaranteed tax-free annuities or pensions.”  There is a lot more information on their web site.

McKellar Structured Settlements defines structured settlements as money paid “over a period of time that you choose, instead of all at once. In fact, it is an annuity with almost unlimited possibilities as to its form.” Visit their web site for more information.

I strongly recommend my clients take advantage of structured settlements because they have many advantages over lump sum payments.

The money is tax free.
It is virtually judgment proof.
You have great flexibility in the type of annuity.
The money is protected.

The disadvantage is that it cannot be changed or cashed in once it is in place.