Countries that practice structured settlement

Author: mcrally

Structured settlement was first introduced in Canada and later in Australia, England and United States. Although the term structured settlement is same in all the countries, the definition and laws, provisions of laws are quite different in each country. There are different enactments, laws, provisions about structured settlement in each country and no laws of two countries are similar. This identifies the unique identity of structure settlement and also confirms a fact that due to its wide acceptance by people, countries have been implementing its legal procedures.

The success of structured settlement is very wide in all the countries and even in the year 2008, United States has even amended Internal Revenue Code by adding some of the provisions for the benefit of claimants who seek structured settlements. Structured settlement being identified as a financial arrangement between two parties, the settlement is covered entirely within the legal procedure. There are no legal disputes unless a suit is filed, which otherwise will be dealt with the process of court procedures. Periodic payment is a settlement made by the court when both the parties approach court for a suitable decision. Installment is paid by the insurance company to the claimant for a life period of time and this is a permanent source of income for claimant. There is more care and attention in the legal procedures as drafted by Congress in United States and also in other countries. There are different standard rules, regulations and tax benefits in each country. These are designed according to the governance and requirement of each nation. Structured settlement being a very good business, it is important for a claimant to consult a tax adviser or an attorney. In each state there are number of practicing legal professionals who can provide good guidance either through on line or in person. The advantages of structured settlement have enabled the growth of insurance business and also worked to the financial security of claimants. The two most important advantages of structured settlements being tax free benefit and an opportunity to invest apart from being a source for permanent income which is a great convenience to the people.

Therefore countries that practice structured settlement have different laws, tax regulations and legal procedures that are different for each country. This also explains the fact that, the success rate of structured settlements in all the countries is quite good which is why this continues to prevail and is being under practice. There are many legal procedures that appear as complicated for people, but in fact if a lawyer is approached, the settlement becomes much easier.

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