I'll not argue with you if it is right to sell a structured settlement or not.
It's your money. It's your right to handle it the way you wish, although the court won't always allow you. Sometimes the justice system believes it knows better than you what you should do with your money.
It has a logic, too. The Structured Settlement Protection Act was set in place in order to protect you and your finance. That's why it grants you the benefit of tax exemption on your personal injury as well as workers' comp structured settlement.
Structured settlements are preferred by financial experts, lawyers and lawmakers for a variety of reasons, including the security of a steady stream of periodic payments in lieu of a lump sum that bears the risk of overspending.
Once a structured settlement is arranged, you may be best off keeping it to maturity, receiving the periodic payments whether fixed or in periodic lump sums instead of cashing it out.
Why? Because when you sell a structured settlement for cash, you will be paid only a part of what you would be getting in future payments.
The reason for this is simple, because money is always worth more now than later, and because you are getting value by receiving cash now rather than waiting for future cash flows.
However, let's get back to our previous statement: it's your money, and sometimes you may want to reverse the structured settlement. You may want to sell a structured settlement for a cash lump sum.
The thing is, the structured settlement can't be revoked or changed, so you are left with selling it for a discount price.
Reasons to sell a structured settlement may be multiple and various. While a structured settlement may have appeared to be your best bet at first, circumstances may have changed by now. Life is dynamic, and unforeseen changes occur.
There's no shortage in reasons for a desperate need of a sum of money at certain points in ones life.
When you do decide to sell a structured settlement, keep before your eyes the advantages as well as the downsides of such a move. If you absolutely need the cash, you may want to go ahead and do it. If you are in doubt, other ways to raise your badly needed capital may be a better way to go. Talk to a financial adviser if you need to (it may be mandatory in a number of states anyway).
And remember: even if you do decide for a cash out, it doesn't have to be the whole settlement money. Parts of your future payments may be sold while keeping the rest. In fact, this is often a wise financial choice. Read more about buying structured settlement payments - in part or in full.
While it is not my job to decide for you whether to sell or not to sell a structured settlement, I still want to caution you. Settlement payment streams are an asset. It's not something that you gain too often. Once you cash it out, it is a done deal. You'll have given up a steady income source. So, think in earnest before you conclude. Don't make hasty decisions.
Let me point out here some pros and cons of selling a structured settlement for a lump sum vs keeping the future payment rights.
Structured Settlements Are Often Preferred Plans For Personal Injury Insurance Cases
---NOTE: am in middle of editing this section, will complete shortly. Meanwhile, it may look a bit awkward. Forgive me. ---
When the plaintiff and the defendant settle their case, an agreement can be signed with the defendant's insurance company to arrange for setting up a structured settlement insurance policy for the plaintiff.
In this case, the claim is often assigned to a third party insurance agent working for a company that sell annuities. The agent is paid by the original insurer to set up a structured settlement plan for the claimant. The agent takes over the case and releases the original insurance company from its liabilities.
A detailed payment plan is worked out for the periodic payments. The plan is usually quite flexible, and various different installments of fixed payouts as well as lump sums at defined periods are structured and agreed upon between the structured settlement company and the payee. In personal injury cases, the future payments, whether fixed or lump sums will be exempt of income taxes.
As a rule...
It may be right to sell a structured settlement if...
It may be a BAD decision if...
Before you do the final and irrevocable decision to sell a structured settlement, consider the following costs that are tied to it:
The Tax Factor Should Also Be Factored In Your Calculations When Selling A Structured Settlement
When you have done your homework and planning and are ready to sell a structured settlement, call me and I'll help you get it done easily and as quickly as possible.
You'll get a fair deal and superb service. There's a friend waiting for your call.
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Personally Injured Can Profit More Buying Another Person's Structured Settlement
My daughter was injured in an auto accident and was suggested to do a structured settlement to claim her compensation. We did our research, contacted attorneys …
Think Before You Act - It's So Foolish To Sell A Structured Settlement Shortly After Setting It Up Not rated yet
The single most foolish thing ever heard - and it did happen, and probably more than once - is a person signing a structured settlement deal to receive …