Structured Settlement Money
A structured settlement is an agreement between two parties. Generally speaking, a structured settlement results from an injury, negligent act or even from winning the lottery. Structured settlements are payments made in instalments over a specific period of time as opposed to a lump sum of money. Many times one annuity or several annuities are purchased with the guarantee of future payments. While it may be a relief to know that money will be guaranteed for future use, what about the here and now? Current financial troubles may have you questioning whether it is a wise decision to sell your structured settlement for a lump sum.
Selling structured settlements have increased in numbers and companies purchasing structured settlements have popped up everywhere. Rarely can you watch television without seeing a commercial stating: “It’s your money!” or “We can get you top-dollar for your structured settlement!” While the theory is nice, cashing in your structured settlement may not be all it’s cracked up to be.
There are numerous things to contemplate when considering selling your structured settlement money. First of all, insurance companies may not consent to the terms established in the sale of a structured settlement. Tax concerns are another hindrance. While people receiving structured settlements enjoy tax-free payments, a lump sum payment will most likely be taxed, potentially removing a significant amount of money from your original settlement.
It is important to remember that companies who buy your structured settlement receive a profit from your settlement. Being informed and educated on is imperative to ensure you make the best investment with your money. It is beneficial for anyone looking into cashing in their structured settlement seeks the advice of a lawyer to ensure that their rights are protected. You may also decide to meet with a structured settlement broker who will help you in determining the best option for your particular situation.