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Simple English definitions for legal terms
trader's settlement
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A quick definition of trader's settlement:
A trader's settlement is a way of giving property or money to someone in a different way than they would normally receive it. It was often used to keep property in the family or to divide money among heirs. It could also be a way to end a disagreement or lawsuit. Sometimes, the settlement is paid out over time or in periodic payments. In some cases, a person who is very sick may sell their life insurance policy to someone else for a lump sum of money. This is called a viatical settlement.
A more thorough explanation:
A trader's settlement is a type of property settlement in which the land is put into a trust for sale. The proceeds from the sale can either be paid out to beneficiaries over time or divided among the settlor's heirs. This is different from a strict settlement, which aimed to keep the estate within the family by creating successive interests in tail and shielding remainders from destruction by the interposition of a trust.
For example, if a trader wants to sell their land and divide the proceeds among their children, they can create a trader's settlement. The land will be put into a trust, and when it is sold, the money will be distributed according to the terms of the settlement.
Another example of a settlement is a structured settlement, which is common in personal injury and product liability cases. In a structured settlement, the defendant agrees to pay periodic sums to the plaintiff for a specified time. This can be advantageous over a lump-sum cash payment, as it allows for deferred payments or arranged settlements that may serve particular purposes that a cash settlement could not reach.
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