The Structured Settlements Idea

Posted On 10:16 AM Tag
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.

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