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A structured settlement is a financial or insurance arrangement whereby a claimant agrees to resolve a personal injury tort claim by receiving periodic payments on an agreed schedule rather than as a lump sum. purchaser of a structured settlement is an individual or company who buys a pre-existing structured settlement. Such settlements might include payouts for lottery winnings or annuities. For example, a court ordered structured settlement pays $5,000 a year for twenty years.
Thus, the courts have generally held that payments made pursuant to a structured settlement for a personal injury claim, as an annuity, are included in income. Harbison v. Harbison, 699 So.2d 876 (Ala. Ct. App. 1997) ($1,000 per month for ten years for personal injury settlement is income); Fabiano v. Fabiano, 10 Conn.