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 settlementsGain 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.
Access money quickly when you sell structured settlement paymentsSome 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.
Buy a structured settlement annuityConsider 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.
- This guide presents general information only, not legal advice. Consult with a qualified, licensed attorney for legal counsel regarding your structured settlements.