Misconception #8: “A structure will jeopardize my government benefits.”

FALSE! Subject to state laws and especially when combined with Special Needs Trusts, structures are typically considered policies—not assets—when calculating AFDC, SSI, Medicaid and other needs-based, governmental public assistance. Structures preserve and enhance these benefits. Lump sums, typically considered assets, can end your current or future eligibility for such benefits.   

In all cases, the IRS has determined that structured settlements always provide tax-free, lifetime income. Again, this is unlike lump sums, where interest and income from the growth of your investments are subject to taxation. The smart option is to use a structure to maximize your benefits, security and scheduled income to meet your specific plans…while you keep the hounds at bay.