4 Things You Didnt Know about Structured Settlements
1.) Where do Structured Settlements come from?
Structured settlements are used in many different situations such as: lawsuits specifically involving personal or product injury cases, the lottery, and insurance. Most commonly, structured settlements are used as a means of payment in lawsuits. There are two types of settlements during lawsuits: cash or structured settlement.
2.) Cash OR Structured Settlements?
After a successful lawsuit, the plaintiff of that successful lawsuit can opt for a cash or structured settlement. Now, a cash settlement has the possibility of becoming taxable. If an individual decides to receive a cash settlement, theyll receive all of the money upfront. For example, if an individual receives $50,000 from a lawsuit; and decides on receiving a cash settlement, that original $50,000 is not taxable. If that individual decides to invest the $50,000, then the investment earnings become taxable.
On the other hand, a structured settlement is a broken up payment of a large lump sum of money from a lawsuit. Structured settlements are, also, tax-free. But, instead of receiving a large amount of money, youll receive smaller payments for a specific period of time or throughout your life.
This means that an individual will have a sure and stable means of income depending on the interval the individual decides to receive settlement payments. In addition, the temptation to spend freely diminishes because the structured settlements provide stability instead of instant riches. Its much easier to manage structured settlement payments than managing one large lump sum.
3.) How to Insure Your Structured Settlement Remains Tax-free.
The reason structured settlements are tax-free is because the winner of the law suit is not the holder of the money. The settlement payments will remain tax free so long as a third party deals with the structured settlement payments. In most cases, structured settlements are paid out by life insurance companies.
Normally, after a lawsuit in which a plaintiff opts for a structured settlement, the defendant sends the settlement money to an assignment company. This company buys the annuity from its parent company. This assignment company makes payments directly to the plaintiff. So, essentially, the settlement holders are dealing with a third party instead of either dealing with the money themselves or the defendant.
Tax codes provide special incentives for these types of companies. In addition to that, tax codes treat the recipients of structured settlements as if they do not own that money. This is how structured settlements remain tax free.
4.) Who are Structured Settlement Brokers?
Structured Settlement Brokers are specialized insurance agents that contact a plaintiff before settlement negotiations begin during a lawsuit. Brokers are paid a commission via the life insurance agency they work for. This means that the individual receiving the structured settlement does not pay the Structured Settlement Brokers any income. These Brokers help families come up with the best individualized settlement plans. Structured settlement plans are incredibly flexible.
Brokers can create financial projections based on the years of structured settlement payments, life, or joint-life plans. Brokers are trained to incorporate financial life changes such as retirement or college funds. Also, structured settlement payments can be deferred for ten to fifteen years, and used as a retirement fund.
A structured settlement under the tax code's terms is an "arrangement" that meets the following requirements: The structured settlement tax rules enacted by
Sell Structured Settlements | Get Cash for Settlements
What is a Structured Settlement? Structured settlement annuities are a financial instrument that is normally used to provide regular, tax free payments to personal
The Structured Settlement - ExpertLaw
Contents. What Is a Structured Settlement? Benefits of a Structured Settlement; Potential Disadvantages of Structured Settlements; Selling a Structured Settlement
Selling Your Structured Settlement & Annuity Payments
Selling your structured settlement or annuity payments can be the solution to a range of financial Structured Settlements; Cash Value; Selling Payments; About Us;
What's A "Structured Settlement"? - Forbes
Like so much else in the world, structured settlements are mostly about taxes. false
What is a structured sale Wahlstrom & Associates
structured settlements SALE OF REAL PROPERTY. The best way to sell your business or real property and to secure a guaranteed stream of income is through a
Sell your Structured Settlement, Annuity or Lottery Payments.
Let Quote Me A Price help you sell structured settlement payments Sell your Structured Settlement, We get you the most cash for structured settlements by
Structured settlement factoring transaction - Wikipedia ...
A structured settlement factoring transaction describes the selling of future that selling future structured settlement payments "is tempting but it's
What Is A Structured Settlement? How to Buy/Sell?
What is a structured settlement? What is a structured settlement loan? Selling a structured settlement; The process of selling a structured settlement;
Sell Structured Settlement Annuity from iSettlements
With a professional team of financial experts and legal advisers iSettlements can help you quickly sell structured settlement structured settlements can sell
