Legal Definitions - trader's settlement

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.