Structured Settlements

Understand the pros and cons of structured settlements to capitalize on your payments
By Stacy Davis Hudson Gain knowledge about the benefits and challenges of structured settlement money to make the most of your funds. Structured settlement payments generally result from lawsuits awarding the plaintiff a large amount of money. The defendant’s legal counsel may suggest paying the settlement in installments rather than a single payment. Therefore, structured settlements mean making payments in installments over time as opposed to one lump sum.
 

Learn about structured settlements to take advantage of tax benefits or to finance future needs that arise. The benefits of structured settlement money include tax advantages. A potential disadvantage of this type of payment is the inability to access funds quickly. Thus, some individuals sell structured settlement payments for cash. However, before selling your payment, determine if opting for cash contains any legal restrictions, contractual inhibitions or tax issues to consider. For example, structured payments could present substantial tax benefits to the injured party. A cash payment on the other hand, might result in immediate tax liability for the plaintiff.

1. Learn terminology relating to structured settlements.

2. Sell your structured settlement to get cash fast.

3. Purchase a structured settlement annuity.

Familiarize yourself with information about structured settlements

Gain a comprehensive overview of how structured settlement cash and payments work. Tap the knowledge of law firms with expertise in this area. Contact attorneys licensed to practice in your state to determine the benefits and challenges associated with your payments.
Try: Call Structured Settlement Services to get a better understanding of structured settlements. For instance, learn about the IRS rulings in which structured settlements originated and how this payment plan brings major advantages over cash payments to individuals facing critical health issues. Join the National Structured Settlements Trade Association to stay abreast of industry trends and developments. Complete the membership application form. Refer to ExpertLaw to learn more about lawsuit settlement payments.

Access money quickly when you sell structured settlement payments

Some companies provide customized plans for people who want their money right now. Getting cash fast means you receive one lump payment rather than installments over time. However, tax risks increase with this method, so seek legal counsel before selling structured settlement money.
Try: Sell your lawsuit settlement for a lump sum payment to Peachtree Settlement Funding. Fill in the form on the right-hand side or call the phone number to get your payment faster. Both English and Spanish-language speaking customers can sell their structured settlement payments at Novation Capital. Call the number in the middle of the page or fill out the form to get a lump sum quote for your structured payments. Contact J.G. Wentworth, a company considered the leading purchaser of structured settlement payments. Dial their toll free number.

Buy a structured settlement annuity

Consider purchasing an annuity for your lawsuit settlement payments. Simply stated, an annuity is a contract between an insurance company and the annuity buyer. When you buy an annuity, you receive the principal and earnings back from the company when you withdraw it. Seek financial counsel to determine what kind of annuity is right for your monetary needs or consider the companies listed below.
Try: Contact John Hancock, an insurance and financial services company, to purchase your tax-free fixed annuity. They design products for people dealing with physical injury issues and workers' compensation claims. Call Pacific Life & Annuity Company to purchase customized annuities catered to your financial needs over a specific time-period.

• This guide presents general information only, not legal advice. Consult with a qualified, licensed attorney for legal counsel regarding your structured settlements.