Setting up a trust to provide compensation during a plaintiff's life time is called what?

Setting up a trust to provide compensation during a plaintiff's life time is called what?

• A. Structured Award
• B. Settlement
• C. Arbitration
• D. Lump-sum Payment

Answer: (A)

A structured settlement is a payout arrangement where damages are paid in installments over time, typically funded through a trust or annuity, with payments designed to last for the plaintiff’s lifetime or for a defined period. This matches the scenario because the setup uses a trust to guarantee ongoing compensation for life, providing a steady stream of funds to cover medical costs and living expenses. It’s different from a general settlement, which is just an agreement to resolve the case (not necessarily in installments); from arbitration, which is a dispute resolution process; and from a lump-sum payment, which is a single upfront amount with no guaranteed ongoing payments.

A structured settlement is a payout arrangement where damages are paid in installments over time, typically funded through a trust or annuity, with payments designed to last for the plaintiff’s lifetime or for a defined period. This matches the scenario because the setup uses a trust to guarantee ongoing compensation for life, providing a steady stream of funds to cover medical costs and living expenses. It’s different from a general settlement, which is just an agreement to resolve the case (not necessarily in installments); from arbitration, which is a dispute resolution process; and from a lump-sum payment, which is a single upfront amount with no guaranteed ongoing payments.