The Structured Settlements Idea

By Dan Michele
If you were involved in an accident at work (workers compensation claim), been involved in an automobile accident, or a wrongful death case and won that lawsuit then you were awarded a settlement. If the amount was small it would have been awarded to you in a lump sum. If it was a rather large amount then it would be awarded to you in a Structured Settlement.

Another benefit of structured settlements is that they are specially designed to meet your needs over the period of time. In case of the death of payee the guaranteed portion of settlement is paid to beneficiary named in papers.
One of the highlighted benefits of these regular payments is the excellent tax advantages that come with it. It is basically income exempted from taxes unlike the usual salary or other forms of income like royalty or dividends.

Selling your structured settlement payments will make you lose many tax benefits in the process. Selling this guaranteed income has only an advantage of large yet single payment.

Ultimately, with structured settlements both parties are in a win-win situation; you become the recipient of a constant flow of income (possibly for life) and the responsible party for paying doesn't have to worry themselves with monthly or annual payments.

If your structured settlement is already in place, keep in mind that it was probably set up from the beginning in a way that is tax-advantaged for you. You may therefore have significant tax penalties if you decide to sell your payments for a lump sum.

After receiving the necessary documents, from your attorney, most decisions are made within 48 business hours, depending on how soon they can talk with your attorney. When approved for funding, your funds are received within 24-48 business hours.

How to Obtain a Free Quote For Purchasing Your Structured Settlement

By David Millers
A structured settlement is a series of payments made to an injured party as part of a court award. Structured settlements are payable over time and the terms of those payments, which may be two or three, or spread out over twenty years, are dictated by the court system.

But what about when you need the money faster than you are getting it? Is there a way to get the money in a lump sum so that medical bills and other expenses can be paid in full? The answer is, it depends.

There are literally thousands of companies known as settlement funding companies or settlement investors who make it their business to purchase your structured settlement payments for a reduced cash price, or lump sum payment. These companies will work with you to determine the actual value of your settlement, what fees you would be responsible for and help you gain approval from the court to sell your structured settlement payments.

There's a fee? Absolutely. An investor is in the business of loaning money for a profit, much like your bank does, except the investor is looking for greater returns on his or her investment. There are many complicated financial fundamentals at play when purchasing structured settlements, but the bottom line is, fees can range anywhere from 30% to 50% or more of the overall settlement, which is pretty steep, but is potentially worth it if creditors are calling daily.

Many of these companies are online and will offer you a free quote as far as the money you would be able to expect to receive and the fees associated with the transaction by simply completing a short online form. That form is generally followed up with a brief conversation with a staff member who can discuss options with you so that you can choose the best plan for you.

Be wary of any company that wants to charge you an upfront fee for obtaining a quote. Most reputable companies will earn their money on the back end of the transaction, through receiving your payments. The quote you receive from them should be free. If not, look elsewhere.

Lump Sum Settlement - The Positives and the Negatives

By Stefano Grossi
Consider yourself a plaintiff who has just won a compensation case. Now you are asked to choose the type of compensation you wish to receive i.e. a one time cash settlement or a structured settlement. The decision you make at this point of time must include a well thought over choice. In order to receive the right type of settlement, you need to analyze your over all situation and then decide which settlement will help you the most.

In most cases, a cash settlement is preferred, but it may not always be the right choice depending on your specific financial situation or future needs. In a case where you receive settlement for a case of injury where you had to be hospitalized, going for a lump sum settlement would seem better as you may wish to pay the mounting hospital bills without any burden. You may also take up any project that you had previously been holding back due to lack of sufficient funds. For example, getting a new house and setting it up the way you like, going on a vacation around the globe, etc. Cash settlements usually change your whole way of living, which might be a real pleasurable experience.

Lump sum settlements provide you with the total cash under your control. You may use it to invest in your business or take up a new career etc. The point is, cash sum settlements, you are once and for all done with the defendant in the case and are totally free to make decisions as to where the money goes and how it circulates. This specific point will lead us to analyze the disadvantages of cash settlements due to the basic human tendency of making wrong decisions.

In case of lump sum settlements, you will be handed the total amount. Now it is your decision on the how to handle this sum of cash that will invariably decide the destiny of this amount. The general human behavior is to spend according to the income. Hence, you may start spending lavishly on account of the lump sum balance in your bank. If not planned properly, this amount that once seemed an inexhaustible sum will be merely enough to buy you, or if you are a nice person, just your date a movie ticket.

Another disadvantage of a lump sum settlement is that it tends to be much smaller then the structured payout. Usually people find that the lump sum settlement idoes not provide the relief for the pain and suffering. . A series of structured settlements will create ongoing compensation even for the individuals lifetime that a lump sum amount does not provide. Hence one is required to consider all these factors while prompting for the type of settlement.

These are the very basic advantages and disadvantages of a lump sum settlement. To know the deeper and more technical aspects of lump sum settlements, talk to an expert in this field at FairField Funding. Fairfield Funding is a direct buyer of structured settlement annuities, will help get you cash for settlement.

Sale of Structured Settlements

By David Millers
Selling structured settlement payments for a lump sum of cash sounds too good to be true, right? It's not. Many times it makes sense to forgo receiving future monthly payments in order to pay off medical or other bills or purchase a new house. But, as with any other financial decision, there is a lot to consider.

Before you get started, be aware that not everyone will be able to sell their structured settlement. The courts will decide whether or not you are eligible to sell based on the reasons you provide, the origin of the payments, etc. There are many factors involved with determining your eligibility. Economic instability may also make it a bad idea to sell, since receiving a guaranteed monthly payment might make more sense than purchasing a new car.

In order to decide if selling your structured settlement is right for you, take certain things into account such as your health. Your health and your ability to work and create an income when you have had an injury may be greatly reduced, making you dependent on the structured settlement payments to make ends meet.

Before you enter into a transaction, think of the impact of your decision for your future. For instance, you do not have to sell your entire settlement. You can choose to only sell a portion of it to take care of things that need to be addressed, while still receiving payments.

You should always have a lawyer review the offer from a settlement funding company BEFORE you sign. There are many consequences that you could face if you don't know the laws or the rules before you begin.
It is also advisable to have an attorney present when in court requesting approval for the sale of the settlement. A lawyer's role in this process is to make sure you understand everything that is occurring before it occurs so that you can make the best possible decision for your situation. Some settlement purchasers actually provide free legal counsel to work with you during this process.

As with any endeavor, shop around for the best deal. You should always make sure that you are dealing with a reputable buyer that will treat you fairly. Oftentimes, the lesser-known competitors to big names like JG Wentworth and Peachtree provide more favorable rates and terms as they don't have to spend as much on marketing.

Selling your structured settlement may be the best option you have for keeping your head above water and paying large bills that may otherwise drown you. Be sure to be diligent when looking into settlement funding companies to make sure you get a deal you will be happy with.

Purchase Structured Settlements

By David Millers
Companies that purchase structured settlements will buy out your future payments in exchange for advancing you money now, minus their fee. These companies can provide needed cash in a lump sum, far more than your monthly allotment, if that is what you choose to do, instead of staying on the monthly or yearly plan that your structured settlement sets forth.

If you have been involved in a lawsuit for personal injury, product defects, medical malpractice, or wrongful death of a family member, you may have mediated a settlement offer. Many times, since settlements in personal injury cases can be so large, the payouts are structured, or set up to be paid out in increments over time. This can be over several months, or years, and in some cases for a lifetime of payments. This amounts to a guaranteed income for the person who has settled their lawsuit for monetary compensation.

When a large sum is spread out over many months, or years, there can be some tax advantages, and it does assure the recipient of future income. By taking a large lump sum all at once, the person who receives it gets a large amount of money all at one time, with nothing set aside for future expenses. People who are hurt and have ongoing medical expenses will need a lot of money for their future care, and a structured settlement is good for that purpose.

Sometimes, however, the recipient has a good reason for wanting a large amount of cash immediately, instead of the smaller amounts over time. They might want to go to college, or buy a house, or have another good reason for needing some, or all, of their settlement money up front. This is a good time to consult the companies who purchase structured settlements.

There is a fee charged, from around 10 to 30 percent of the money advanced, and the transaction is similar to getting a payday advance, except for a lot more money, and the repayments go directly to the company that bought out your settlement. It is possible to have them purchase just a part of your settlement, so you get a lump sum now, and whatever remains would continue as before, but in a lesser amount. You would still get some future income, just not as much.

When deciding to sell a settlement, it may be necessary to obtain court approval. That is one way that the legal system acts on your behalf, to be sure you are doing this for a good reason, because the structured payment system was decided upon for a good reason also. Take time to examine several companies who purchase structured settlements before you take action. Oftentimes, smaller competitors offer better rates and terms than the big names like Peachtree and JG Wentworth.