No! The law does not allow the injured party to take all of the settlement in cash, and then convert it (in it's entirety or a portion thereof) into a structured settlement annuity on a later date.

Even though it may be tempting to first settle your case, take complete control of your entire settlement award, and then decide the best way to invest it; doing so will forbid you, once and for all, from receiving your settlement money in the form of tax-free, structured settlement periodic payments.

Once you have received your settlement money, and signed off on a settlement agreement, you would no longer have access to the tax subsidy that Congress has extended to the recipients of any such settlements. Of course, there is nothing that prevents you from buying investment annuities. However, any money that you would be so investing would no longer be viewed as compensation to you for your injuries. Any revenue (such as the interest on your lump sum cash payout) would be treated like all other taxable forms of income.

It is imperative, therefore, that you notify your attorney early on about your desire to receive some or all of your settlement award in the form of structured settlement. Better yet, ask your attorney to arrange for the services of your own independent, certified structured settlement consultant (usually available at no extra cost to you) in stead of blindly following the "recommendations" of a structured payments broker retained by (and hence only loyal to) the defendant.