One key advantage is the tax benefits associated with a properly set-up settlement. An appropriately set-up structured settlement could very well reduce the plaintiff’s tax obligations. In some cases the settlement could avoid taxes altogether.

Another advantage is that the structured settlement could also prevent a plaintiff from splurging all their money all at once. In this way, the structured settlement could be a sort of financial control. Instead of getting the money all at once and risking spending much of it on unnecessary or unwise transactions, a structured settlement’s periodic payments will help the plaintiff with paying for necessary costs before they spend the money on other things.