Purchase Structured Settlements

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.

For more information or a free quote on purchasing your structured settlement, contact Professional Settlement Buyers [http://professionalsettlementbuyers.com/]

Article Source: http://EzineArticles.com/?expert=David_Millers

Facts About Structured Settlements

A structured settlement is an agreement between two people where a sum of money is to be paid from one to the other. Rather than paying the entire amount that is owed all at once, the structured settlement sets up an annuity. An annuity is a set sum of money that will be paid to the recipient every year until the funds have been depleted.

On example of a time when a structured settlement is warranted is when someone wins a lawsuit. In the event that a plaintiff sues someone for damages that were done to them, the jury has the choice to decide in favor of the defendant, meaning that the defendant did not cause the injury to the plaintiff. If that happens, the plaintiff does not receive a monetary award. If the jury does determine that the defendant’s actions did cause the plaintiff’s injuries, the plaintiff will be entitled to compensatory damages.

Once the jury has decided in the plaintiff’s favor and has chosen the amount of money that the plaintiff deserves, the parties can decide on whether or not the money should be disbursed in one lump sum or in an annuity. Anytime that the plaintiffs decide they will receive an annuity, the defendants in these cases will be ordered to purchase structured settlements. These structured settlements will have a few advantages over the lump sum that is deposited into the plaintiff’s bank accounts.

The first advantage is that the plaintiff will not be able to spend the money in an unwise fashion in less than a year. With most of the money out of their hands, plaintiffs have to wait to receive their money on a yearly basis or a monthly basis, depending upon the terms of the agreement. Since the annuity is meant to last throughout the plaintiff’s lifetime, their structured settlements ensure that they have this income for life.

The other advantage that structured settlements offer is tax advantages. Another type of payment that is often accepted as an annuity is for winners of the lottery. These people can win enormous sums of money, but the amount is taxed on the state level as well as locally; this can result in the reduction of their winnings by 50 percent in some cases. When lottery boards purchase structured settlements for their winners rather than offer the lump sum, their winnings are not taxed at as high a rate as the lump sum would have been.