top structuredsettlement
Q: What are Top Structured Settlements?
A: If you have been involved with a lawsuit involving personal injury settlements, your attorney may suggest that you consider structured settlements. This is when your case involves settling for a large amount of money, and often the other sides attorney will offer a plan for you to receive the settlement amount over a proposed period of time, rather than all at once in a lump sum. The payouts can range from an annual payment over a period of 10 years, for instance, to perhaps a payment twice a year. The party who is settling with your regarding your personal injury settlements will purchase an annuity which guarantees the full payment over time.
Q: Would I Benefit From Structured Settlements?
A: Avoiding a large tax impact can be one of the main benefits of accepting lawsuit payments through structured settlements. When properly organized, your tax obligations in regard to the amount you have received from the personal injury lawsuit settlement may be reduced, or in some cases may even be tax free. Someone who has been severely injured and will have years of on-going medical care and special needs may benefit from this type of settlement. In a situation of a wrongful death case where there are young children, structured settlements may be utilized to pay for the cost of college in the future.
Q: What are the Drawbacks of Structured Settlements?
A: You may not borrow against the future payments of your personal injury settlements. For instance, let's say you'd like to purchase a home. If you receive an annual payout this may help for your income qualifications on the house, but you cannot access the annuity to put a down payment on the property. The amount of return on the annuity may be less than the amount you may be able to receive if you were managing the full settlement yourself.
Q:Is it True I Can Sell My Structured Settlements?
A: Yes, this can many times be done. There may be laws or restrictions which will come into play. Certain insurance companies which are handling the lawsuit payments may have restrictions on a sale to a third party. This can be an arena where unscrupulous business are shopping for a good deal, and offer you a low amount, but for a quick payout. Annuity buy outs are not always the best answer, and often may need to be approved by the court. At the very least, seek the advice of your personal injury attorney before entering into an agreement to sell through annuity buy outs.
Structured settlements are financial awards made against one party for the benefit of another party, where the receiving party is awarded compensation at the expense of the other party, usually in settlement of for instance a workplace, personal injury or wrongful death compensation claim. Rather than receiving all the compensation award in full upon settlement, they provide for the award to be paid via a series of payments at agreed periodic intervals. The perceived benefit is that this reduces the likelihood of the award being spent unwisely shortly after the compensation is received. They are considered particularly appropriate for recipients who may be lack maturity at the time of the award or otherwise be considered vulnerable.
A structured settlement loan is an arrangement whereby the beneficiary takes a loan using the structured settlement payments as collateral for the loan. In the first instance and even if the settlement provides for an immediate payment, the first payment may not be received until several months after the date of the settlement, and if the beneficiary needs funds quickly they can chose to obtain funds faster via a loan, and then pay back the loan upon receipt of the future payment. In addition to this form of 'bridging loan', there may be instances where after a period of time after the award the beneficiary has a change of circumstances or priorities, and needs to access monies to fund certain life events such as home purchase or an educational course, or perhaps just to pay off debt. In these circumstances the beneficiary could choose to take out a lump sum loan as a means to release funds, and then arrange for the loan to be paid back from the future periodical payments. A loan should differentiated from selling the right to the payments outright. This is an option also available to beneficiaries of structured settlements, however, there is a subtle difference,
Before taking a loan, a beneficiary is best advised to consider whether this course of action is genuinely in their best interest. It is advisable for the beneficiary to be candid with themselves and ask whether the financial situation they are seeking to alleviate has been created by poor money management skills. If this is the case the receipt of a large lump sum of readily spendable money could actually make the situation worse, as it may just support a cycle of poor decision making, without forcing the beneficiary to address the underlying issues. In any event it is advisable to obtain professional financial advice before proceeding.
Top Tips For Getting A Lump Sum For A Cash Structured Settlement
A one time payment for a cash structured settlement is a great option to obtain your money if this is awarded by the courts following an injury. The injury may be of a personal nature or one suffered at your workplace. Such awards are also made due to a product liability claim or wrongful death.
This kind of award requires far more thought when that injury will impact your future income, but isn’t available in all countries or states who may insist upon paying by instalments. It is altogether up to you whether you select a lump sum cash payment or settlement by instalments.
The advantages of a lump sum for a cash structured settlement range from the chance to pay back financial obligations, or for any medical equipment or treatment you might need following that injury. Additionally, you will be in a situation to invest the money yourself which will provide you with more control over your future. The drawbacks may be you don’t cope with the money prudently, that could leave you with absolutely nothing to fall back on in the future. When the award is especially large, it is sometimes hard to budget properly and you’ll need to take some advice about this.
You will need to meet with a specialist financial advisor when you have the full facts of your award. Be careful though, just like many other areas of finance, do your homework to ensure the company is trusted and trustworthy with a decent track record and plenty of testimonials.
Never choose the first company you speak to, especially if the salesman seems to be pushing you in a particular direction. A one time cash structured settlement may seem attractive, but there could be better choices for you. Approach several companies, pay attention to what they’ve got to say and take notes. Even better, get all the facts in writing and consider what you want and what’s best for you instead of the salesman!
The company will need to look at your present payment stream and your financial goals. They should then produce a cost effective plan for turning your future payments into a lump sum cash structured settlement if it is right for you. Otherwise, they ought to only buy the quantity of future payments that’ll be essential to meet your goals.
When you have decided that you indeed want a cash structured settlement in a lump sum payment, think carefully about the various company offers you have received and done the research, then you ought to be on target to protecting your future financial needs. bestlumpsumstructuredsettlement
How do I sell my Structured Payments?
You may need to buy or repair a home, start or invest in a business, fund a college education, pay off a debt, divorce or invest. These some valid reasons why you’d like to have lump sum in your hands rather than your periodical payments. The process of selling an annuity or structured settlement is not difficult, but it involves you taking the step to sell, deciding how much to sell and going before a judge to approve your request prior to accessing your cash. All this process includes five steps:
Make the decision to sell | you can start the sale of your settlement process if you have valid reasons for it and the sale of your payments will not have any effects on your future financial needs. Shop around to find the discount rate and service on your sale | it is important that you work with a funding company that is reputable and has your best interests in mind, uses its own money to fund (is not merely a broker), is experienced in completing the court ordered transfer process, and has A+ rating on the Better Business Bureau and very few complaints, if any. Choose the company you like best and start the sales process | you must begin the paperwork process. After you submit the proper paperwork (your annuity policy, settlement agreement or benefit's' letter' so the transfer company can verify your payments, application, ID), all materials are reviewed to ensure they are complete and accurate. Have your sale's approved by a judge | once the relevant documents are returned and they are fully signed, a local attorney files them with court and after that the court will schedule a hearing. This is the beginning of the waiting period. In the court you will be required to justify why the money is needed and you should be in a position to show that you are not putting your and your family’s financial future in jeopardy. Unless there are any problems with your request of transfer, the judges mostly approve the transfer at this stage.Get your money | Once approved, the judge will sign the order approving your transaction and the order is sent over to the insurance company to wire funds. How long does it take to sell my Structured Payments?
After youve signed the contract, on average it takes about 45 days to receive your money. However, keep in mind that every structured settlement purchase transaction is different due to each state's las 'regulating such purchase transactions. In addition, you may qualify for an immediate cash advance to help you through a particularly tough time.
What discount rate is normal when selling Structured Settlements?
If you are considering selling your annuity, you need to be sure that the offers you are getting are reasonable and fair as you’ll have to get the lump sum reduced by a factor of the projected interest earnings, known as the discount rate. The exact discount rate that you will need to give in order to sell your structured settlement will depend upon the total amount of your settlement payments, the number of payments you have remaining, the date those payments are due to arrive, the number of payments you wish to sell etc. The longer people have to wait to receive their payments, the greater the discount rate will need to be. Discount rates from factoring companies to consumers can range anywhere between 8% up to over 18% but usually average somewhere in the middle. An average discount rate of 12% should be reasonable but there are some companies that will want to take as much as 30% discount.
Will I be forced to pay tax if I Sell my Annuity or Structured settlement?
The money you receive from selling your structured settlement payments will have the same tax treatment as the payments you receive from your structured settlement annuity. The Periodic Payment Settlement Act of 1982 (Public Law 97-473) formally recognized and encouraged the use of structured settlements in physical injury cases by designating payments from a structured settlement as tax-free. Section 104(a)(2) of the Internal Revenue Code clarifies that the full amount of the structured settlement payments, including the acceleration when, for example, RSL Funding purchases your annuity, is tax-free to the victim. The Internal Revenue Service has ruled that where a claimant assigns periodic payments due to be received under a settlement agreement in exchange for a lump sum, the lump sum remains tax-free. As part of the Tax Relief Act of 2001 (H.R. 2884) signed by President George W. Bush on January 22, 2002, individuals who must sell their structured settlement payments to meet unplanned financial needs are protected. This legislation made it mandatory for individuals to seek court approval when they sell their structured settlement payments, and works in conjunction with state laws directing how these types of transactions will be completed. In addition to benefiting and protecting the individuals, it also makes clear that annuity providers will suffer no tax consequences as a result of these transactions. The legislation states that annuity owners and providers do not now owe, nor have they ever owed, taxes as a result of these transactions.
Though, most likely you will have to pay taxes on any money that you have won, such as lottery winnings or casino earnings. These things are taxed as any other income. If you paid your taxes on the entire lump sum up front then you will not pay taxes again when you sell your payments. However, if taxes are deducted regularly, when payments are made, then you may be responsible for paying a lump sum of taxes if you sell these periodic payments.
Do you offer tips for selecting a Structure Settlement company to work with?
The best structured settlement companies are those that treat you the best, do not pressure you, and offer you the best deal with the lowest discount rate. Shop around before accepting an offer. Although you wouldn't research settlement brokers if you didnt need the money, a discount rate of 20% + is a lot of money to give up. Perhaps it's worth it for you but you should give this a lot of consideration.
Should I sell my Settlement Payments to pay off debt?
This is a complicated question. If your debt is serious enough that you may end up in bankruptcy proceedings, you should speak with a bankruptcy attorney and determine whether your settlement would be protected. If it would be protected, do not sell to pay off your debt.
What is an anti-assignment provision?
The goal of an “anti-assignment” provision is to ensure that the two contracting parties will not be able to transfer their obligations under the agreement to someone else without first getting permission from the other party. One of the boilerplate clauses found in most commercial contracts looks something like “Neither this Agreement nor any of the rights, interests or obligations under the Agreement shall be assigned, in whole or in part, by operation of law or otherwise by either party without the prior written consent of the other party.”
There are three variations of anti-assignment clauses that can be used in a contract: a standard anti-assignment clause barring any assignment or delegation, the second one is used when the parties want to prohibit assignments except if they transfer the agreement to new owners or affiliate companies (and don’t want to ask for permission), and the third type is similar to the second one except it requires permission for such an assignment. But it should be noted that only prevent “voluntary” assignments van be prevented; you cannot prevent assignments that are ordered by a court or that are mandatory under law—for example in a bankruptcy proceeding.
What is a deferred annuity?
Usually an annuity contract is created when an insured party pays an annuity company a single premium that will later be distributed back to him over time. However, sometimes an investor may choose to defer annuity payments income, installments or a lump sum until he/she elects to receive them (e.g until he/she retires). This type of annuity is called a deferred annuity and has two main phases: a savings phase, when money is invested into the account and an income phase, when the plan is converted into an annuity and payments are received.
A deferred annuity is not taxed until the income phase begins and it also provides a death benefit to the survivor(s) of the annuitant. As this type of annuities is designed primarily as retirement savings accounts, the annuitant may owe a 10% penalty tax in addition to ordinary income taxes if principal, earnings or both are withdrawn prior to age 59½.
Depending on the way the investment is made the deferred annuity earnings can be either fixed (your money earns interest at a fixed rate that will never drop below a minimum rate guaranteed by the issuing company and is tax-deferred until withdrawals are made) or variable (you choose investments from a pre-selected list of funds called sub-accounts inside of a variable annuity and the returns will vary depending on the underlying performance of the chosen investments). How to Sell Your Structured Settlement and Annuity Payments For The Most Cash
In recent years there has been a high demand in individuals seeking cash for the Structured Settlement and Annuity Payments. People receiving these types of payments are now consistently being marketed to by direct mailers and television commercials. There has also been a significant increase in people searching the web seeking companies to sell their payments to. The demand is most likely due to the current economic climate. So the question that I see most of the time online is "how do I sell my Structured Settlement and Annuity Payments"? This article will assist you in gathering insight on how to sell your payments and what the process entails.
A company that purchases Structured Settlements and Annuity Payments is referred to as a factoring company. They will purchase your payments for a discount. This means that if you sell them a total amount of $100,000 in payments, they will not give you $100,000. The average lump sum payout will typically be 50% of the total amount of payments you are selling. This figure depends on the monthly or annual payment amounts you are receiving and when those payments are due and for how long you are receiving them for. If your payments are due soon, this means your payments have a higher present day value and you will therefore receive more cash for them. If your payments are due to you in 10, 20, or even 30 years out you will notice that your payments will have a lower present day value and the offer you will receive will be less then if the payments were to be made in 3, 5, or 9 years. This doesnt mean you are getting a bad deal, it just means that your payments are worth less in the present day.
The first thing to do if you are interested in selling your Structured Settlement and Annuity payments is to contact a reputable company that offers this service to individuals receiving these types of payments. You should have no problem obtaining a quote from a company. A good company will provide you with several options since you are not required to sell your entire payment stream. They will assist you in raising the cash you need and still leave you with some of your payment stream for your future. Always make sure to obtain at least two to three offers to make sure that you are receiving the best deal possible. Never accept a verbal offer from a company. There are some companies that exist that will make you an offer and then change your offer at the signing table. You should always review your paperwork in detail before you sign.
A customer approached us a couple of months ago, she was scheduled to receive $150,000.00 lump sum payment in a couple years as a result of a car accident that had left her partially disabled. She needed the money since the bank was set to foreclose on her house. She had contacted a company that offered her $100,000.00 for her $150,000.00 lump sum but they changed her offer at the signing table and also included almost $3,000.00 in legal and processing fees. Luckily she did not sign the paperwork and instead called us. We were able to offer her $130,000.00 for her payments without charging legal and processing fees. With the money she received she quickly paid off her existing mortgage and now lives debt free. These are stories we hear time after time from our customers and how we were able to help them.
Should I Sell My Structured Settlement Payments?
sell my structured settlement payment
A common question from people who have annuities and structured settlements is, "Should I sell my structured settlement payments?" When you do this you get cash now while the person who buys the payments will collect the future payouts. Here are some things you should consider when trying to decide on selling.
The first is if you need the money now. In some cases it makes more sense to keep the settlement payments because they will give you long term financial security. But in many cases the small payment amounts aren't cover' your immediate needs. If you are paying on high interest credit cards, a large lump sum payment would let you pay them off and be debt free. Large medical bills could also be paid off with the cash payment you would receive should you decide to sell your structured settlement payments. If youre unable to work, you may face losing your home or being evicted. A lump sum payment would fix this problem.
Even if youve been happy with your settlement in the past, things change. A new medical problem, a job loss, a move, a new child, or a broken down car might all require you to have cash now. In these cases it makes more sense to be able to pay in cash than to put everything on a credit card. Credit cards keep increasing interest rates making it harder to make payments.
Any time you have a structured settlement or annuity you can settle it for cash. Some of the types of cases include a wrongful death settlement, a personal injury structured settlement, a lawsuit settlement, a structured settlement annuity, or a medical malpractice settlement.
Only you can answer the question "Should I sell my structured settlement payments?". Its important to consider all of your options. You should also trust the company that is buying the payments from you. Make sure they are established and reputable.When you receive cash from selling a structured settlement payment, be prepared to spend or invest the money wisely. sell my structured settlement payment