What is a structured settlement??
It is an agreement done with the help of insurance company, between the defendant and an
individual who was harmed during an unfortunate event. The defendant promises a legal
settlement to be paid out as an annuity rather than in a lump sum. In simple words, it is
nothing but a settlement between an injured individual and the defendant about a periodic
payment of money instead of paying it in lump sum, which certainly has some tax advantages
for the recipient and the payer.
Not only this, the recipient also has some added advantage by getting money periodically,
because he/she is in an injured state, where a condition to work does not prevails. So, this kind
of periodic settlements will bring the individual a regular income with which he/she can
manage his/her basic needs.
A Structured Settlements can also be sold out for a huge amount of cash. This makes the
bestower to get a periodic income where in, the recipient gets a certain huge amount. There
are also some factors to be considered while cashing out structured settlements; the annuitant
will not receive the whole money instead, the bestower will grant him a certain sum with an
amount of discount because the recipient wants the money instantly.
There are some cases where periodic settlements will no longer be required in cases like
workers compensation, where the medical bills are all paid and there is nothing left out to be
paid, selling of the remaining portion of the structured settlements that will earn a fair sum of
cash, which can be used for other needs.
It is always better to consult an attorney before Selling Structured Settlements as some
annuities might not have the options to be sold out earlier for a particular period of time. The
person also has to take care of paying the tax after selling structured settlements. When a
structured settlement is sold there are possibilities for the funding company to offer a value
lesser than that of the market price as the cash has to be given immediately.
Settlements can also be sold partly or wholly, it depends upon the interest of the seller. It is
always better to consult an attorney or licensed broker to Sell Structured Settlements as they
have much knowledge and experience in this field.
For further information on structured settlement you can avail the help of US.Settlement
Funding, we assure that we will do all possible help to make you attain the best value out of it.