What is a structured settlement and how can it benefit you? Anyone that files a personal injury case and settles outside of court or even wins the case will be awarded the money through a structured settlement. Rarely do companies offer one big lump sum to pay for the expenses as it costs them too much money up front and it can bankrupt companies if they have multiple lawsuits. The structured settlement system is very intelligent as it is set up to help you live a comfortable lifestyle. Structured settlements don’t make you rich; they instead allow you to have enough money to meet your needs.
Why Are Structured Settlements Beneficial?
Anyone that has problems controlling their spending should consider a structured settlement. The structured settlement will keep you from overspending as you get a set amount each month or through periodic payments. It’s up to you to decide how to spend this money but just know that you won’t get an extra payment if you decide to put it toward car instead of your medical expenses.
What makes structured settlements great is the tax benefits they come with. You no longer need to worry about paying taxes as a structured settlement is tax free income from the Federal government and it is also tax free in each state. Check on other regulations pertaining to structured settlements in order to see that you have rights in case a company goes bankrupt and you are concerned about the structured settlement payments. There is also a section for structured settlements that allow you to have more flexibility with the income and who it can be transferred to in the event that you are unable to manage the money and your beneficiaries need to take over.
Can You Sell a Structured Settlement?
If you find that you need more money now than what the structured settlement is providing, you do have the right to sell a structured settlement. Selling a structured settlement does require approval from a judge. In most cases the judge wants to see documentation as to why they should allow you to sell your structured settlement and cash out the money. The purpose of the structured settlement is to keep people from spending all of the money and when you cash out the money there is no way to know that you will be smart with controlling your spending and holding onto the money.
When an individual decides to sell a structured settlement, they will give up a large amount of money. The structured settlement sale only allows you to collect a lump sum payment from investors. They rarely offer the full amount because they won’t be able to make money off it this way. Instead they will come up with an amount that they feel is fair and provide you with this amount instead. Depending on your situation and desperation you may find that you have to sell at this price. Be very diligent in seeking out the right annuity companies and others to purchase the structured settlement. You need to be sure you are getting money from a company that is reputable and will be able to provide you with a fair amount.
Since structured settlements are difficult to understand, we recommend consulting with one our of attorneys to discuss your structured settlement.