What do I need to know?

First, understand that smart settlement design is not an “all or none” proposition.  There are two ways to receive settlement funds, each of which offers advantages and disadvantages.  You need to learn what the differences are so you can design a settlement plan that best fits your needs.

As far as structures go, people generally fall into two camps: those who are motivated by the tax benefit and those who are motivated by the security.  Certainly, many like both.

Before you make any design decisions, you need to understand both of these key features: how big is the tax break and how secure the payments are.