A structured settlement factoring transaction describes the selling of future structured settlement payments (or, more accurately, rights to receive the future structured settlement payments). People who receive structured settlement payments (for example, the payment of personal injury damages over time instead of in a lump sum at settlement) may decide at some point that they need more money in the short term than the periodic payment provides over time. People's reasons are varied but can include unforeseen medical expenses for oneself or a dependent, the need for improved housing or transportation, education expenses and the like. To meet this need, the structured settlement recipient can sell (or, less commonly, encumber) all or part of their future periodic payments for a present lump sum.
Monday, March 9, 2009
Structured Settlements
Is a structured settlement right for you? You might find yourself re-considering this option. Remember, the structured settlement will be paid over a course of time in several installment payments equalling the whole. This can be good or bad, depending on your personal needs. It's looked upon as a secure and safe way to budget your funds properly, eliminating the chance of accidental overspending. It's also important to note that structured settlements are tax-free. All payments made via a structured settlement are nontaxable by federal tax guidelines (IRS Section 104(a)(2). 100% of every payment is tax exempt. |
However, it's possible to sell structured settlements, and people do this all the time. There are firms that buy structured settlements and you have the option to sell to them. This provides you with a large one lump sum payment rather than the installment payments you would be locked into with your structured settlement.
There are some very trustworthy firms that will buy your structured settlement, J.G. Wentworth The Leading Purchaser of Structured Settlement and Annuity Payments are among the top of the list. They are one of the leaders in the business with 15+ years experience purchasing more than $2 billion of future payments, including structured settlements and annuities, from over 50,000 customers.
Another firm to consider would is Patriot Settlement. They go the extra mile in helping people obtain a large lump sum of cash now for their future payments from a Structured Settlement, Annuity or Lottery award.
Novation is a direct buyer of structured settlements. They provide cash now, in a lump sum, for people who are receiving payments over time, but need their money now.
You can get your free consultation at American Financial, it might be the best place to start if you're undecided.
Choosing the right specialty finance company to work with is an important decision, and many people do not know where to turn for advice. The Structured Settlement Alliance is designed to help you get the most money for your structured settlements and annuity payments. The SSA helps to make this process easy for you by matching you with the best possible financial institution to handle your settlement, and letting you decide how to proceed -- putting the control where it should be, in your hands.
Annuity Purchases offers a free quote as well. Their programs can help convert your long-term income from an annuity into cash that you can use today. While annuities serve an important role and often meet the payees' needs as originally planned, they are inflexible and incapable of resolving unplanned, immediate financial needs.
Another firm worth mentioning is Settlement Funding. Fill out their short form, and receive immediate quotes from top structured settlement funding companies, as well as free information on structured settlements, settlement selling tips, and your rights as a structured settlement owner. To get cash now for your structured settlement or annuity payments, explore these respected firms for yourself and decide which is best for you.
Remember: Under a structured settlement, an injured victim doesn't receive compensation for his or her injuries in one lump sum. They will receive a stream of tax-free payments tailored to meet future medical expenses and basic living needs. A structured settlement may be agreed to privately (for example, in a pre-trial settlement) or it may be required by a court order, which often happens in judgments involving minors and incapacitated adults.
article sourse:http://www.structuredsettlementsum.com/
What you need to know before selling your structured settlement payments.
What you need to know before selling your structured settlement payments. Source: Free Articles
Before the state structured settlement protection statutes and the Victims of Terrorism Relief Act of 2001 which created ?5891 of the Internal Revenue Code, any one wanting to sell their settlement payments were on their own. The sale of structured settlement payment rights today requires a Court in your state to review and, if appropriate, make a "qualified order" approving the sale of such payments or a hefty 40% excise tax is applied. The concept of Court approval is intended to protect you from entering into a deal that is not in your best interest.
Should I sell my payments?
The answer to that one is difficult. The question you might ask yourself: Do I need the money now? For example: to buy a house, pay for an education, a business opportunity or to keep from filing bankruptcy. Any good reason would make sense. To go on vacation or buy an Acura Legend might not be in your best interest.
If you have other money sources to explore, I suggest using those options first. Selling your structured settlement should be a last resort.
Five things NOT to do when Selling your Structured Settlements.
One: Don't sell to the highest bidder. Why?
There is what is called High Balling. Some brokers or structured settlement or annuity sources will make a high offer just to get someone under contract. Then they will start making excuses and reduce the offer. Once you are under contract with a funding source, it is very difficult to back out. Even if you are able to pull out, you will have to start the whole process over again losing valuable time, at a time when you may need money desperately.
Two: Believing the funding source when they say you will have your money in a couple of weeks.
The time to close is dictated by individual state laws, both where the state and the insurance company have their home office and the state where the client resides. In some states, it is possible to close in about a month. In other states, it can take as long as four months. With the rest, it is somewhere in between. Court orders take time and all transactions need one. Don't believe it if someone says they can close in a week or two.
Three: Thinking you have to sell the whole settlement or annuity. Not determining how much you really need.
Why sell a $300,000 settlement when you only need $25,000? If you need additional cash sometime in the future you will be able to sell more payments or lump sums at that time. You will end up with more cash, than if you sell all payments at once; and it allows you options.
Four: Letting emotions or being desperate control our decisions.
We have all gotten excited or felt desperate when faced with various situations. We could be excited about buying a home or starting a new career; or we could be feeling desperate because we are about to lose our home or are facing high medical expenses. Even though we are excited or desperate, we really must think through our decision. Some brokers or funding sources will try to take advantage of us and our situation. We should discuss our situation with a trusted family member, friend, attorney, pastor or whomever. We do not want to ruin tomorrows financial options by making irrational decisions today.
Five: Check out the reputation of the structured settlement or annuity purchaser.
Call the attorney general or consumer affairs in your residence state and the state where your funding source is located to see if there are any complaints about that funding source. If there are a lot of complaints against the source you are considering, take that as a red flag and move onto the next source. Don't agree to anything or sign any agreements until you feel you are dealing with a reputable structured settlement or annuity purchaser.
Remember to first look for other sources of money like family, banks and ect., before selling payments. If your settlement is your only source of income it is not in your best interest to sell. Make sure the people who are buying your payments have your interests in mind. SELLER BEWARE.
I hope that you have a positive experience and put the money to good use, if you decide to sell your payments.
The Truth About Selling Your Structured Settlement
Structured settlements are an increasingly popular option for resolving injury or damage claims. These types of agreements allow the beneficiary to receive periodic (usually monthly) payments instead of a single, large payment all at once.
This might turn out to be a great option for some people, since the settlement is usually arranged so that they payments cover some or all of the injured party's medical and/or personal expenses. However, with the high cost of medical care, some people may need a larger sum of money to cover the additional cost or that money might be needed to cover other non-medical expenses.
If you're receiving payments from a structured settlement as a result of an injury claim, you have several options if you need to get more of your money immediately versus having smaller payments trickle in over time. There are several companies that specialize in purchasing structured settlements and this can offer you a quick and easy way to get access to more of your money with very little headaches.
Usually, you can sell either part of your structured settlement or the entire settlement. However, one thing to keep in mind is that the amount you receive as a lump sum will probably be significantly less than if you added up all the payments you would have received over time. In other words, there's still a "cost" in selling your structured settlement. But if you need money now, the cost is reasonable and you can get enough money to meet your current needs, this can turn out to be a great, creative solution to an otherwise stressful situation.
You can either work with a company that will buy your structured settlement directly or with a company that acts as a broker, putting you in contact with a large number of financial institutions who might be able to meet your needs. Working with a broker saves you time and energy since you can get multiple offers and choose the lender that best suits your needs.
The great thing is that more often than not, a broker can get you a free quote based on some simple info you provide. Then, they will notify their network of lenders who will then respond with their offers. You can choose which offer to accept or simply walk away. This is a huge time saver when compared to researching, contacting and negotiating offers with each financial institution one-by-one and all on your own.
Of course, when going this route, you definitely want to make sure you're working with a structured settlement broker with a vast network of financial partners. That will get your information in front of more lenders and will hopefully result in more offers.
If you simply want to receive a lump sum of money but don't have any particular reason for doing so, this probably isn't an option you should consider. Instead, this should be used for emergency situations or situations that truly require quickly raising money for a specific purpose.
But if you find yourself in an emergency situation, facing a financial challenge requiring you to raise money fast, and you're also receiving structured settlement payments, this is one of the most flexible options available to you.
If that's the case, start investigating your options immediately.
Source: Free Articles
When a Structured Settlement is Best
This article explains a few things about Structured Settlements, and if you're interested, then this is worth reading, because you can never tell what you don't know.
Structured settlements are structured cash payments through an annuity system that is established to compensate injury victims for their losses. Structured settlements are the other alternative payment system to a lump sum cash settlement and are set up to provide payments to you over time.
Structured settlements received special legislative treatment by the U.S. Congress in 1982, as a way to make large settlements more agreeable to parties and provide certain protection to victims. As a result, many people now choose a structured settlement agreement over a lump sum distribution, and courts often award them in civil actions where there will be long-term costs of living and the necessity for obtaining cash payments at some point in the future.
Under a structured settlement, the victim will receive compensation over an extended period of time (often a lifetime) instead of a large single payment. The structured settlement is a way of protecting the victim from economic loss and hardship, while also making the payout more palatable to the defendant.
Structured settlements are obviously not appropriate in every case. A simple accident where the injured party is and will be fully capable, cases where the term of the treatment or care is not spread out over a long period of time, and where the kind of injuries are not severe would probably not have a structured settlement agreement.
Structured settlements are designed for many other types of cases though including:
?Severe injury where there is long-term treatment requirements, where future medical costs will necessarily be incurred, and to meet living and family expenses.
?Worker?s compensation cases where the injured party may not be able to work or at least work to the earning capacity that they would otherwise have enjoyed.
?Permanent or temporary disabilities that will take extensive recovery time
?Wrongful death cases where a surviving family will need a regular income to replace that of the lost spouse/parent
?Guardianship cases where there are minor children or another person who is judged to be incompetent such as a person with psychological, emotional, or mental handicaps
If your Structured Settlement facts are out-of-date, how will that affect your actions and decisions? Make certain you don't let important Structured Settlement information slip by you. That's how things stand right now. Keep in mind that any subject can change over time, so be sure you keep up with the latest news.
Source: Free Articles
Purchase Structured Settlements
We purchase structured settlements.
Oasis helps you to do what YOU want when YOU want with YOUR money.
Structured settlements arise when a consumer settles a lawsuit claim.
With a structured settlement, the injured party receives periodic payments. However, it is very common for consumers who are receiving structure settlements to run into financial problems simply because they cannot access their future settlement payments in time to meet current financial obligations.
This is typically not an issue of being unable to pay the bills. Rather, structured settlement recipients often want to fund major life events such as buying a home, purchasing a business, or paying for college. The timing of their settlement payments makes it difficult to make those important investments.
Oasis solves this common problem by restructuring the structured settlement payments. In effect, we purchase structured settlement payments due in the future and provide consumers with a lump-sum cash settlement payment now. For consumers who are receiving structured settlement payments, it allows them to make investments in their own future that might otherwise not be possible.
How We Purchase Structured Settlements
It all starts with your completing our no-cost, no risk application form. If you prefer to talk on the phone, our helpful representatives are ready to assist you at our toll free number: 1-877-333-6675.
SUBMIT A REQUEST FOR A FREE QUOTE NOW
More Information on Structured Settlements
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NSSTA 2009 Winter Meeting
"Protect the business model and prepare for the future" was the unstated theme as the National Structured Settlement Trade Association (NSSTA) hosted its 2009 Winter Meeting in Orlando, Florida January 28-30.
From NSSTA's perspective, the structured settlement model depends upon:
- Helping injury victims and improving dispute resolution;
- IRC sections 130 and 104(a)(2);
- Integrating these tax preferences with other government benefits including:
- Social Security;
- Medicare;
- Medicaid;
- Veterans benefits; and
- Federally-assisted housing.
- Cooperation among defense and plaintiff intermediaries;
- Bi-partisan political support in Washington, D.C.;
- Controlling negative secondary market conduct and publicity;
- Continuing payment performance by all annuity providers.
The challenges facing NSSTA, and the structured settlement industry, include:
- The impact of the financial crisis;
- Anticipated legislative and regulatory changes;
- Identifying new leaders;
- Growing the market;
- Addressing 468B and the secondary market;
- Reconciling claim management and settlement planning;
- Transitioning to Internet-based technologies and business models.
Directly or indirectly, NSSTA's educational program in Orlando addressed all of these issues.
Educational program highlights:
Injury Victims
- Andrew Imparato - Imparato, President and CEO of the American Association for Persons with Disabilities (AAPD), was NSSTA's keynote speaker in Orlando. Imparato praised structured settlements as one possible model for modernizing other federal entitlement programs. NSSTA and AAPD have collaborated previously on legislative initiatives including IRC 5891. NSSTA participated as an event sponsor at the 2008 AAPD Gala Leadership Dinner. Imparato spoke previously at NSSTA's 2007 Fall Meeting. The 2009 AAPD Gala Leadership Dinner is scheduled for March 4 in Washington, D.C.
- Eric Vaughn - NSSTA's lobbyist summarized existing federal consumer protection legislation and highlighted some of the consumer and investment protection legislative proposals and issues now before Congress. Although he anticipates federal reforms, Vaughn did not predict whether the primary or secondary structured settlement markets will end up inside or outside any legislative and regulatory net.
Washington Reports
- Congressman Kendrick Meek - Congress Kendrick B. Meek, a Democrat representing Florida's 17th district, addressed economic challenges facing President Obama and Congress. TARP has not served the purpose Congress intended according to Congressman Meek. He predicted continued economic problems "for at least 15 months" including the structured settlement industry. To be effective legislatively, Congressman Meek recommended NSSTA feature "real stories and real people". Congressman Meek further stated: "now is the time to come together" legislatively to protect and improve the structured settlement industry. Congressman Meek also confirmed his candidacy for the U.S. Senate seat which will be vacated when Florida Republican Mel Martinez retires in 2010.
- Eric Vaughn - Vaughn's summaries of NSSTA's political challenges and strategies highlight every NSSTA meeting. In Orlando, Vaughn discussed lobbying opportunities for structured settlements both in Congress and within the Obama Administration. Vaughn provided his political analysis of current Congressional committees as well as proposed legislation important for structured settlements. Vaughn urged all NSSTA members to attend NSSTA's 2009 Annual Meeting April 29 to May 1 in Washington, D.C.
Plaintiff and Defense Brokers - NSSTA's educational program featured two panels addressing plaintiff and defense structured settlement cooperation.
- James Early and Ronald Sullivan - Early (defense) and Sullivan (plaintiff) agreed on most issues: their collaborative objectives include facilitating settlements and taking care of injury victims; both plaintiff and defense brokers are needed; clients should not be able to dictate whether and how brokers share commissions; most brokers are "good people"; 468B funds should be limited to multi-claimant cases and not utilized to eliminate defense brokers. Their only stated disagreement concerned "approved lists" with Sullivan asking what is wrong with injury victims selecting their own annuity providers?
- Roger Bernstein; Bruce DeBacher; and Michael Goodman - Bernstein (special needs attorney), DeBacher (defense) and Goodman (plaintiff) discussed how each helps to settle cases by adding value. Bernstein deconstructed a sample life care plan and integrated collateral benefits to reach "reasonable" settlement expectations. DeBacher and Goodman explained how to build a settlement in an adversarial context, emphasized the need for early involvement and agreed upon the advantages of having both a plaintiff and defense structured settlement broker. They expressed shared concerns: trust companies using factoring to sell against structured settlements; and the decline in small cases resulting from defendants' de-emphasis of structured settlements.
Settlement Consulting - Joseph DiGangi addressed problems the structured settlement industry faces with its historic "annuity broker" business model. According to DiGangi, these problems include a stagnant market, negative perceptions of roles and value, limited knowledge base and resources as well as a single product offering. DiGangi proposed an alternative "consultant" business model with multiple products and services providing added value. Using a case example, DiGangi constructed a planning solution matching the injury victim's "needs and wants" for which he utilized a structured settlement annuity as the foundation product. For structured settlement professionals who lack the expertise or licensing to offer comprehensive solutions, DiGangi recommended teaming up with other professionals.
IRC Section 468B - With Henry Strong moderating, William Winslow and James Klapps discussed the use of 468B funds in cases involving multiple claimants. Their presentation objectives included helping brokers use 468B to expand their structured settlement business and highlighting errors that brokers and their clients should avoid. The presentation purposely omitted references to controversial single claimant 468B issues as well as technical tax and administrative issues. Instead, Winslow and Klapps provided a general introduction to IRC 468 plus encouragement for uninitiated structured settlement professionals that IRC 468B business opportunities and issues do, in fact, exist.
Note: for persons interested in understanding the single claimant 468B controversy, see: Robert Wood's article titled "Single-Claimant (468B) Qualified Settlement Funds?" and Richard Risk's article titled "A Case for the Urgent Need to Clarify Tax Treatment of a Qualified Settlement Fund Created for a Single Claimant" ". For information about technical 468B tax and administrative issues, see Wood's new book "Qualified Settlement Fund & 468B". For information about structured settlements and 468B funds, see Section 3.08B of "Structured Settlements and Periodic Payment Judgments" (Release 44) written by Daniel Hindert, Joseph Dehner and Patrick Hindert.
The Secondary Market
- As part of the NSSTA Legal Committee's "All Things Considered" presentation, Illana Hanau and Michael Miller spoke about structured settlement secondary market issues. Hanau summarized historic abuses and continuing bad business practices by structured settlement factoring companies. Her examples: In re Wiggins, a 2001 Idaho case involving Peachtree Settlement Funding, and the Fresno County cases involving 321 Henderson (a J.G. Wentworth affiliate). Henderson is appealing the Fresno County cases. Hanau also summarized results from a "random sample" of factoring cases as evidence of bad business practices by factoring companies. Miller summarized other business activities in which some structured settlement companies engage: the secondary market for life insurance; the purchase of taxable annuity products; and litigation funding.
- During his "Business Ethics" discussion, Rev. Oliver Williams asked the audience to identify structured settlement business conduct that has caused "shocked disbelief" among NSSTA members. As one example of such "shocked disbelief", NSSTA attendees identified structured settlement factoring. More specifically, that factoring has dismantled many "permanent" structured settlement case "solutions" and that NSSTA's "proscriptive" political strategy for factoring (IRC 5891and the state protection statutes) has resulted unexpectedly in substantial secondary market growth.
Internet Transition - Patrick Hindert, S2KM's blog author, led a discussion titled "Web 2.0: How to Improve NSSTA's Online Communication. Learning and Collaboration". Hindert introduced and proposed a NSSTA wiki prototype designed to support NSSTA's committee policies and procedures.
For S2KM reports about prior NSSTA meetings as well as other settlement planning professional associations, see S2KM's structured settlement wiki.
article sourse:http://s2kmblog.typepad.com/rethinking_structured_set/2009/01/nssta-2009-winter-meeting.html
Structured Settlement Answers - Information You Must Know
The following article provides some answers to the most common questions about structured settlements. By the time you're done reading this, hopefully you'll have a better understanding of structured settlement answers and information.
Who is eligible for structured settlements?
Anyone involved in an accident or lawsuit can be offered a structured settlement as part of the court's ruling. It's especially popular with auto accident and medical malpractice victims. However, no one is ineligible from receiving structured settlements.
Why do people sell their settlements?
Many people experience great financial distress during their situation that causes them to receive a settlement in the first place. By selling their settlement, they're able to have a large sum of money to do what they need, rather than getting a tiny amount every month or so. Some people just sell their settlements to finance an education or other large purchase, which is really quite frivolous at times. Education or a home is one thing, but selling a settlement to buy a new car or a boat is a little irresponsible.
Who can I sell my settlement to, and how do I find them?
There are plenty of companies that will purchase structured settlements from people for various rates. To find these companies you can look in your phone book, or simply do a search online for companies. Make sure that you research all the companies before you agree to anything to ensure you're working with a legitimate company.
What do I lose by selling for a lump sum?
You'll lose some of your settlement by selling it off to a settlement funding company. However, if you're in dire need of financial salvation, the money you don't get will be well worth the money that you do get. You'll surrender all rights to your settlement to the purchaser, leaving you with no legal ties to the money. They will take care of everything else between them and the company that's paying the settlement.
| For more shockingly easy tips and information on structured settlements, including how a structured settlement actually works, visit http://www.Structured-Settlement-Tips.com Article Source: http://EzineArticles.com/?expert=Costas_Peppas |
Structured Settlement Loans - The Important Details You Need to Know
When two parties have undergone a legal case and one of them has to pay the other, that situation sometimes call for structured settlement payments. This is because the losing party, or the side who is obliged to pay the dues as a result of legal action, is sometimes not capable of paying monthly annuities; the receiving end meanwhile sometimes prefer to receive a bigger amount of money rather than waiting for it to come at a scheduled day of the month.
Parties who are obliged to pay legal dues therefore seek the help of an insurance company who thus provides them with an annuity policy. This policy is thus used to make the payment to the receiving end at a faster, more efficient timeframe.
Why are structured settlement loans helpful?
These days, more and more people prefer structured settlement payments. This is basically because the money comes faster rather then given at installment payments at a longer timeframe. Structured settlement loans also work in the benefit of the losing party, since they get to settle their bill faster, and give them more time to pay the money lent by the insurance company. Besides, it's not really fun to deal with debts for a long period of time; you'd rather have them settled faster, as this saves you not just from your budget worries, but also emotional stress.
Also, there are recipients who would need a larger amount of money than the sum they expect to receive. This may because of different reasons; they might need to pay for their medical expenses, prepare for retirement, have plans for investment, or purchase a piece of property. If they don't get the sum they need, then they won't be able to fulfill their dues or plans of purchase.
How do structured settlement loans work?
Structured settlement loans work as follows: the person who wants to sell his structured settlement submits the proper documents to those who buy settlements. The documents include the insurance company issuing the structured settlement payment, as well as the insurance policy. The settlement purchaser meanwhile provides a quote, and if the seller agrees to the offer, then they come to a mutual agreement.
Since structured settlement loans are becoming more common in the United States, the country has come up with laws to help parties sell their settlements without putting much risk. This is of course very helpful since they payments are kept safe and protected from scams.
Also, because of its growing popularity, acquiring a structured settlement loan is now easy to do. A lot of insurance companies now purchase structured settlements in exchange of a free quote. This becomes beneficial for both ends since the money to be received now is always more valuable than the money you can get tomorrow. With this, recipients can use the money in better ways than one, and the profits reaped can be bigger than what they were supposed to receive.
Structured settlements are not only a result of legal action; you can find these with lottery winners, as well as people who are granted with large amounts of money, and getting in its full, or at least in larger installments at a shorter period of time is more favorable than any other option.
| Eric Hayes has extensive experience on the subject of structured settlement loans. Visit his structured settlement loan site for free information on the subject. Article Source: http://EzineArticles.com/?expert=Eric_Hayes |
How Is Income From Structured Settlements Taxed?
Income received from court awards as a result of personal injury is normally not taxable. For this reason, many personal injury awards are set up as structured settlements, usually in the form of an annuity, to totally avoid paying taxes on the income. This is one of the primary advantages of structured settlements where you receive payments over a specific period of time.
However, the income tax treatment can change completely when a structured settlement is sold. There are quite a few companies out there now who will offer to purchase structured settlements from individuals wanting to obtain a lump sum of cash in exchange for periodic payments. Once the periodic payments from a structured settlement are sold, the proceeds normally lose their tax-free status.
As you can imagine, with companies competing to buy structured settlements for lump sums of cash, abuse is a serious concern. So, in 2002, President Bush signed legislation that attempts to stop companies from abusing individuals who are selling part or all of their structured settlement. Most states now enforce very strict requirements and even require court approval before any structured settlement sale can take place, otherwise a substantial additional tax is placed on the proceeds of the sale. These new laws are intended to protect people from selling a structured settlement for considerably less than its true value.
Structured settlement agreements are extremely complicated. Your best bet is to have a competent personal injury attorney with experience in these matters review your structured settlement contract and advise you of your options.
One of the advantages of structured settlements is the payments are tax free. But, following your death, any lump sum or additional payments to your survivors may not be tax free, so you should also consult with a qualified tax attorney about the tax consequences to your survivors of inheriting your structured settlement payments
| See also my article on: How To Sell Your Structured Settlement Payments About the author: Michael Thompson is a freelance article publisher. To read the rest of his articles on structured settlements visit: http://ukandoit.us/MoneyMatters/StructuredSettlements-MainPage.html Find a good Personal Injury Attorney in your area Article Source: http://EzineArticles.com/?expert=M._Thompson |
Who Will Handle Your Structured Settlement?
When it comes to selling your structured settlement, many people simply don’t know where to turn for advice. Choosing the right specialty finance company to work with is an important decision, and one well worth investing a little time in. This process can be a bit overwhelming but don’t let it be. A little homework will go a long way.
You want to try and find a company that has your best interest in mind, as well as offering you the best purchase deal.
It’s advisable to use a specialty finance company. Many of these firms make this process very easy for you by matching you with the best possible financial institution to handle your settlement, and letting you decide how to proceed. This allows you the control you rightfully deserve.
Remember, this is your structured settlement and you have the right and desire to get the best possible deal for it. This is the very reason you’ll want to do some homework prior to making your decision.
Another thing to keep in mind is that you’ll probably be facing a few weeks before the actual deal is completed. This process does not happen overnight, where you’re walking out with money in hand the same day. Beware of this, as you could be misled into thinking that you may be paid that very day or the next day. Nothing is impossible, but you have to ask questions and be aware of these issues.
Your structured settlement payments are 100% tax-free. Whether that makes this option appealing to you or not there is another issue you must consider.
If you decide to sell your structured settlement and get a big lump sum, it’s crucial that you have a budget plan for how you will use the income.
Do not make the unfortunate and sad mistake of spending all of your money in a short time, only to find that you need further medical attention, or any other money needed circumstance that may arise, and find you’re out of loot.
This could indeed be a huge blow to your financial well-being, and quite possibly cause irreversible damage to your credit and to your family in general.
Having a solid financial plan in place will assure you the best results down the road when it really matters most.
For Details on Companies that Purchase Structured Settlements.
| Bob Molton offers resources to help others get the crucial information needed to make correct decisions involving their Structured Settlements.. If you're considering selling your Structured Settlements. I urge you to learn more at Structured Settlement Purchasing Companies Thank You, Bob Molton Article Source: http://EzineArticles.com/?expert=Bob_Molton Article Source: http://EzineArticles.com/?expert=Bob_Molton |
Advertising Structured Settlements for Sale
There are a number of companies that are happy to purchase structured settlements from persons who are unhappy with the terms of the settlement, including the way that the settlement is scheduled to be paid. But how does one go about finding these companies that are willing to buy structured settlements for sale? Here are some ways you can connect with these firms and arrange a deal that is mutually beneficial.
One of the first things you can do is advertise online. There area number of message boards that are set up to allow persons who are currently drawing settlement payments to interact with one another. By making it known that you are interested in selling your settlement, you will not doubt attract the attention of several firms who are happy to do just that. Check around on the Internet for message boards where you can make your intentions known and make sure there is some way that you can be reached by interested parties.
Of course, there is no reason why you have to wait for interested firms to come to you. While you are online, initiate a search or two and come up with the contact information for a few companies that buy structured settlements for sale. Read up on how they do business and run some checks to make sure they are legitimate and ethical. Once you are satisfied that a company is respectable, then contact them about your settlement and see what kind of an offer they can extend to you.
Keep in mind that companies that purchase structured settlements for sale do not do so out of the goodness of their hearts. They are in the business of making money. However, you may be able to find a company that will offer you a large enough lump sum that you feel comfortable selling your settlement to them. Just make sure the deal you make today will not leave you without resources that you will need later in life.
| Mayoor Patel is the writer for the website http://www.structured-settlements.wares-are.us/. Please visit for information on all things concerned with Structured Settlements for Sale Article Source: http://EzineArticles.com/?expert=Mayoor_Patel |
What is a Structured Settlement?
There are a lot of ads on television these days for companies that want to purchase structured settlements. But the question remains in the minds of many persons as to exactly what constitutes a structured settlement. Here are a couple of things about this type of settlement that you may find interesting.
A settlement that is structured is a way of settling a civil issue where one party has been wronged in some manner and is seeking compensation. Accidents and medical procedures that went awry are two examples. By extending a settlement, the accused party does not admit to wrongdoing, but manages to avoid court costs and works out an amount that is agreeable to both parties. Along with the total worth of the settlement, there may also be some conditions imposed as part of the agreement. The conditions may include a covenant between both parties that the terms of the settlement will not be divulged to a third party, or that the settlement is considered to be paid in full upon the death of the recipient.
One vital component of the structured settlement is the terms of payment. In some cases, the settlement may call for one lump payment. More often, the settlement may be divided into regularly scheduled payments. The schedule may call for monthly, semi-annual, or annual payments until the settlement amount is completely disbursed. If at all possible, it is a good idea to negotiate the frequency of the settlement so that the recipient can get the most benefit.
There are a number of arbitration services that can explain the inner workings of a structured settlement in great detail. In addition, there are a number of web sites that discuss settlement options, procedures, and other relevant matters that would be of interest to anyone who faces involvement in some manner with a settlement situation. If you are faced with the potential of being involved in some sort of settlement, make sure you know what can happen and understand what you need in order for the settlement to be in your best interests.
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What Is A Structured Settlement?
A structured settlement is a monetary obligation paid to a victim in case of injury. These payouts are a result of a lawsuit and the offenders make payments through insurance companies. This is a legal payment that has to be made regularly for the period it is structured for. In most cases, the victim is incapacitated, has endured loss in earnings due to absence at work or is rendered incompetent as a result of the injury. In such cases, the lawyers of both parties negotiate this payment and the amount of reimbursement decided upon, is documented in a contract.
The amount of reimbursement decided upon is largely dependant on the victim's lawyer. It is important to hire a reputed lawyer, who is able to make accurate estimates of long-term monetary losses incurred. He bargains with the defendant, to acquire a rightfully structured settlement. There are a number of details that need to be considered when calculating structured settlements. These include the degree of disability, severity of the accident, estimated future income of the injured person and approximate medical expenses. Structured settlements are designed to provide an adequate cash flow for an injured person.
Structured settlements, also known as annuity settlements, are considered to be a secured long-term and tax-free income. These payouts safeguard the interest of the beneficiary. The structured settlement should remain tax-free and protected during the tenure. The receiver cannot demand payment augmentation or advances. This proves to be a disadvantage in case people need quick cash or a large sum of money instead of a regular monthly payment. In such situations, people can contact a funding company. These specialized institutions purchase structured settlements at a reduced rate. When in need, people can sell a part of the settlement or the entire contract, to meet their needs.
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How Cash for Settlement is Taxed
Generally, income as a result of personal injury is not taxable, depending on the specific type of award. However, some areas are taxed as income. For this reason, and the fact that there is a certain amount of gray area when settlements are not categorized into specific taxable groups, many settlements are set up in a structured settlement, often as an annuity, to completely avoid paying tax on the award. This is one of the primary advantages to a structured settlement.
However, it becomes a completely different tax beast once the structured settlement is sold. In the last few years, several companies have surfaced offering to purchase structured settlements from individuals wanting to obtain a lump sum of cash in exchange for periodic payments. While the general rule is that awards (that are taxable) are considered as income during the year they are awarded. However, once the money goes into a structured settlement and is sold, the proceeds may lose the tax-free status. This is even more a concern since new legislation has gone into effect trying to limit the ability to transfer structured settlements.
In 2002, President Bush signed the initial round of legislation to stop settlement funding abuse, in what was then perceived as a shady business. As a result of those laws, as well as proceeding statutes, there are very strict requirements to buying a structured settlement. In fact, many states require court approval before any sale can take place or an additional 40% tax is placed on the proceeds of the sell. The reason for this is supposed to be to protect people from paying high interest rates and selling a structured settlement for considerably less than its real worth. For in-depth tax questions in your state, it is best to contact a local tax advisor.
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Get Cash From a California Structured Settlement Company
There are many resources online that offer detailed information on California structured settlement companies. A person wishing to sell his structured settlement should visit these sites so that his selection process becomes easier. The free quotes offered online help the seller to find out the minimum that he can get on the sale of his structured settlement.
California structured settlement companies purchase structured settlements from individuals and have business relations with insurance companies all over America.
A seller can receive a lump sum payment from the settlement company only after the sale has been approved via a written court order. The court order states that the sale is indeed in the best interests of the seller and his dependents. Various sections of California state law need to be met before the lump sum can be transferred. The seller should initiate the sale process keeping in mind that it can take a minimum of thirty days from the day the seller signs an agreement selling his rights to the structured settlement. Sellers are free to cancel the agreement before the court approval takes place
The purchase of a structured settlement by the buying companies is done on the basis of the effective equivalent interest rate; therefore sellers should scout the market for buyers that offer the best rates. The process of obtaining cash from a California structured settlement company involves several expenses such as commissions for the brokers, application fees, service fees, closing expenses, fees incurred during the legal procedure, and notary fees. These expenses are usually borne by the structured settlement company.
Sellers should approach a financial advisor only after doing their homework so that they can obtain maximum benefit from their advice and clinch a deal as early as possible. This is because under California law, independent professional advisors such as certified public accountants and actuaries, who advice claimants on the legal and financial implications of a settlement sale, have to be paid their fees even whether or not their advice results in the sale of a settlement.
Sellers and buyers should take note of the fact that a structured settlement sale without a court order can attract a hefty tax for both parties. It is imperative that sellers be on their guard while dealing with buyers; there is a process involved in the sale of a structured settlement and if a buyer suggests anything to the contrary, it is best to avoid him.
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Why Would A Company Want To Buy My Structured Settlement? By
There are several structured settlement companies and corporates that purchase structured settlements and offer a lump sum in exchange. The simple reason for a company to purchase a structured settlement is that it represents a good investment deal. Structured settlement payments from lottery winnings, royalty payments, and insurance annuities are income-tax free and are secured by federal and state regulations.
Companies that purchase structured settlements are thus assured of a steady stream of income over a period of time which allows them to execute their growth plans in an assured manner. Alternatively the money can be invested by these companies where the principal continues to grow.
Corporates purchase structured settlements at a profit. This means that the amount which the seller receives is a discounted amount arrived at by factoring in the profit margins and bank interest rates. Also, by purchasing a structured settlement companies are able to obtain loans more easily. This is because of the secured nature of these settlements. The loan money can be used to pay off a large chunk of the lump sum. Thus, the company ends up paying very little out of its own pockets.
Structured settlements represent secured finances that help improve the market standing of a company which has a healthy effect on their businesses. They represent a safe business option for their partners because of their financial soundness. The more business they generate and prosper the less need these companies have for middle-men in their dealings with sellers of structured settlements. This allows them to offer the best rates to sellers by eliminating broker’s commissions.
The work involved in executing a structured settlement sale basically consists of marketing activity and working with the seller for acquiring court approval. Companies do not require diverting too many resources to this activity but the returns of the efforts are manifold. At any point in time, there are individuals who need cash for immediate use. By establishing a network through agents and by maintaining an online presence, structured settlement buyers can tap into a lucrative source of guaranteed and income that will last them for a long time.
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Purchase Structured Settlements - How Does it Work?
You may have heard of structured settlements and the buying and selling of structured settlements. It may be that you are looking for more information on this subject. This article will give a brief outline of what happens in the purchase of structured settlements.
What is a structured settlement? In basic terms, it is the final decision which is made by a lawyer or another type of legal professional when something is in dispute between more than one individual or groups. The decision is made when both parties are in agreement to all of the terms which have been discussed in the dispute. Once all are in agreement, payments are made. There will be payment terms to the settlement, and this is the structured part.
So what about the purchase of a structured settlement? Today, there are many firms, individuals and companies that will purchase structured settlements once everything is finalised and the decisions have been made. This should be no surprise as when it comes to money or many things in the financial world, a niche market will exist to cash in on it.
Why would these companies want to purchase a structured settlement? The short answer is that they are in business and looking to make a quick profit. But it is not all one way as the seller will also benefit. This works as the seller will usually sell the structured settlement as they would like to have their for money up-front. In many cases, the company looking to purchase the structured settlement will have no problems waiting to be paid as they are not short of funds.
However, as with any financial transaction like this, the person who has the most money usually comes off best. In a scenario such as this, it is the side that wants to purchase the structured settlements. The buyer is in a position to negotiated terms to which will be best suited to them as they are putting the money up.
The buyer will also assume some risk as in a few cases, they will not be paid back the full amount.
As stated before, this is only a brief outline of this subject. It would be highly advised to do your own research and ask the right people the right questions.
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