For injured parties, structured settlements provide a tax-free income stream without fear of money mismanagement or market fluctuations. Typically, upfront cash for attorney fees, medical expenses and related liens are included in the package. If it qualifies under section 104(a)(2) of the internal revenue code of 1986 as amended, payments are tax free. In the event of the injured party’s death, a guaranteed (also tax-free) portion of the settlement may be made to the estate or a named beneficiary such as a spouse or child. To qualify for the income tax benefits of a structured settlement, the recipient cannot accelerate, defer, increase or decrease the payments. The payments also must be fixed and set at the time the settlement is created. The money used must come from the defendant or its insurer in an amount no greater than the original liability.