When Should You Sell Your Structured Settlement?

You've probably heard them on the radio, or seen their ads on TV: finance companies eager to purchase structured settlements (or annuity or other stream of scheduled payments which are legally bound in place). In other words, these firms will give the holder of a structured settlement a single lump sum of money for all or part of their payment stream. Why would they want to do that? What is in it for them? In short, they get the same benefits you would, if you were to keep the structured settlement yourself:

• Tax treatment: depending on how the payment stream is structured by the courts, their may be limited or even NO tax liability associated with the scheduled payments.
• Reliable income: companies are just like you - they need money they can count on to keep the doors open. A court ordered income stream is one of the most reliable streams of capital around.
• Healthy return on investment: when a company offers to purchase your structured settlement, they won't be offering face value of the debt; they'll pay something less than you would have received if you'd held the settlement through it's assigned lifetime. For instance, if you have a settlement which will pay you $100,000 over the course of the next ten years, one of these finance companies might offer you something like $80,000 to make the purchase. The gap between the face value and what they pay is where they make their profit.

So you can see that these finance companies have plenty of reason purchase your structured payment stream. But has mentioned, most of these benefits apply to you, as well - so be sure you are willing to forgo those benefits in order to receive that chunk of money right now. One final note: this all assumes that selling your payment stream to a third party is even an option. Many states (about 2/3 of them) have statutes in place which restrict the sale of structured settlements, and there might be federal restrictions affecting you, too. Do your due diligence before you even approach one of these vendors. But if it appears you are able to sell your payment stream, and you REALLY need a large amount of money right now, it is nice to know you have options.

Sully Kincaid is not a financial advisor, but loves finding and sharing ways to improve one's day to day life, whether that is learning about solar energy or how to sell a structured settlement [http://sellastructuredsettlement.org/].

Keep looking at the sunny side!

Sullivan Kincaid

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Structured Settlements - Questioning Your Cash Options

The smart decisions we make are triumphs of judgments, while the bad decisions is an opportunity to learn. When it comes to structured settlements you may be questioning your cash options. If you have come into a lot of money, it would be beneficial for you to ask around about a structured settlement to consider for your future care and needs.

One option that may be presented to you by a financial adviser is to propose paying in recommended payments over a time, rather than one fixed sum after a plaintiff settles a case for a large sum of money. These payments can last over a period of time or extend through the claimants lifetime.

These well deserved, much-needed payments can change depending on the claimants needs which can include an immediate payment in order to cover for inevitable damages. Structured settlements are usually made through purchases from an annuity from a life insurance company.

A valuable advantage is tax deferment. If set up in an appropriate manner, it can greatly reduce a plaintiff's tax obligations. An added benefit of structured settlements is that you can assure yourself provided funds for future care and needs.

A disadvantage is that they are a fixed structure. It may not be to your best interests to settle in on this option of payment. You might want to start a new business or buy a new home, but you lack the assets. This keeps you in an avoidable situation until the next payments arrive.

Also, structured settlements do not work smoothly with investments. A lot of typical investments give long-term return than with annuities provided by the structured settlement system. In this case, you would be better off opting for a lump sum settlement.

Learn the availability of benefits that structured settlements can give you that best suit your needs. Ask all the questions to find out what is your best option. After all, one of the most important questions may be the one you are not asking. You can find out if a cash option for a structured settlement is best for you by seeking professional advice.

Information is a source of learning, but unless it is organized, processed, and available to the right people for decision making, it is more a burden than a benefit. There are decisions to be made if you have been a victim as a result of a wrongful injury. As a result of your injury, you may be awarded a settlement. If this is the case, and you still have questions regarding your award then you should obtain more information.

What is a structured settlement? They are set up when an insurance company or advisor offers you a cash settlement out of court in exchange for dropping the suit you have brought against their defendant. Through the settlement you would receive periodic instead of one lump sum.

Where does the funds from the settlement originate? The defendant in the case purchases an insurance annuity which is basically an investment with the insurance company. The idea behind this investment is that it will grow providing them with the funds they need to meet your financial obligations.

Are there any restrictions placed on structured settlements? There could be, it depends on the type of your contract. For example, if the law suit was on behalf of an injured child, the company may insist the funds only be used to toward the child's education. Or if the law suit was on behalf of an employee, the funds can only be exhausted on further required medical supplies or therapy.

Is there any way to terminate the structured settlement? It depends. Your original settlement agreement will have a termination date, when it has been paid. Or you can approach a structured settlement agency to purchase the annuities. The agency will take a share of the annuity and you will get the remaining funds. This allows you to also change to a lump sum if it better suits your needs.

A professional adviser is available for all your structured settlements questions and concerns. They can assist you in determining what is best for your situation. The information you obtain can help you in finding the best answers for your deciding on a structured settlement. The right answers can help you see the potential.

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Selling Structured Settlement: How to Make the Most of It?

There are unfortunate instances in life where money gets swindled in financial institutions. Whether it is a large financial claim or a claim for a motor vehicle accident, delay in seeking financial help can be frustrating and annoying. In order to minimize the hassles, Sale of Structured Settlement is the most appropriate and easiest way out.

As a recipient, after selling structured settlement you will be locked into a payment schedule to receive periodic payments. It is the simple way to get the cash you need to meet your short term and long term goals. There are many benefits to claimants who opt to Sell Structured Settlement:

1. They are perfect way to meet the urgent requirement of large sum of money for the beneficiaries. In the event of medical emergencies, marriages etc, it is particularly helpful when the claimant is in need of quick payment.

2. They offer the recipient with the ability to mortgage the structured settlement document and seek a secure Structured Settlement loan against it. There are a large number of buyers who are willing to provide a loan against the settlement.

3. It is a flexible instrument which is beneficial for both company and the claimant. Besides providing decent periodic payouts to the beneficiary, it is beneficial to the company as well where it is able to defer the liability.

4. Selling your structured settlements for a lump sum money can somewhat help maximize the value of your settlement.

If you are thinking about selling your structured settlements, there are several things that you need to consider before dealing with a buyer. Look for a truly legitimate buyer to ensure you do not land in any trouble in the future. Guard against the buyer that intends to take advantage from your payments. This will help you save yourself from losing money.

A good buyer of structured payment starts up with general discussion and throws light on how the procedure will progress. Opt for a buyer who can provide you with a promise to make timely and quick payments. Check all the required credentials of the buyer. Staying informed about the legitimacy can save you from falling prey to bad buyers.

Getting clear and enough information about the basic transaction between the buyer and the claimant is important to clearly understand the different aspects of the process. Many online providers like Fairfield Funding aim to provide right solution to the claimants in a timely and precise manner. Check on the background of the buyer before making a decision to sell your structured payments to them. Landing on the right buyer will serve you with a trouble-free way to meet your needs and make the best of the structured payments.

For benefit of readers our website has more useful and related information for Structured Settlement and also good stuff about Fairfield Funding.

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How to Successfully Sell a Structured Settlement

The main reason that people seek out to sell a structured settlement is so that they will be able to have a lump sum of money at once. Some people are trying to get out of debt and others want to have money for an investment. They may be looking to buy a home, a new vehicle, or even to buy a business so that they can make a return on the money they use for starting it up.

Whatever the reasons behind it may be, there is a right way to go about how to sell a structured settlement. You need to do your homework and find out what is offered out there. Don't be in a rush to just give it over to anyone or you can end up getting scammed or losing too much money.

When you sell the settlement you will get a lump sum that is less than what the overall structured settlement would be over the time frame that has been outlined. You want to compare rates to find out where you can get the best overall deal. Of course some stipulations of a structured settlement state that it can't be sold so make sure you don't have such confinement before you even start to look for a buyer.

Once you find a buyer that seems good, check out their reputation. Find out how long they have been in business, look at any claimed filed with the BBB, and read independent reviews online too. Those will be from people just like you who have worked first hand with that business. Find out how the process went for them when they sold a structured settlement so you can void common pitfalls.

Make sure you carefully read through all of the terms and conditions for the sell of your structured settlement too. Find out what the tax repercussions will be, how much money you will get, and when that money is going to be available. It may be a good idea to have a financial advisor review it for you before you sign on the dotted line.

The ultimate information resource for everything relating to structured settlements can be found at PurchaseaStructuredSettlement.com [http://purchaseastructuredsettlement.com] where both selling an annuity income stream and buying structured settlements [http://purchaseastructuredsettlement.com] is covered in detail. Check it out now and learn how to get the best prices for buying or selling or just get your questions answered.

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Why a Structured Settlement Payment Is a Good Choice?

Structured Settlements guarantees many advantages that make them a good choice. The main benefit of settlement is that it provides income at periodic intervals and the money is free of state as well as federal taxes. But, the interest accrued from investments made from cash gained through a lump sum is related to federal and state tax. Even, many individuals who come into money by acquiring a lump sum are unable to invest it opportunely and often spend it wastefully, this isn't possible with a structured settlement where small amounts are made available periodically and therefore an individual's spending is regulated.

Losing money that has been acquired through a Structured Settlement isn't as dangerous as loss of money acquired through a lump sum payment. The small amounts are easy to administrate and also don't excite the interest of elements as compared to strong lump sum payments. By this kind of payment, a person doesn't need to worry about planning for long-term investments as the periodic payments can be structured to take sufficient care of one's needs post retirement or in the case of a debilitating injury. Structured settlements are preferred by both the defendant and the plaintiff as they can be settled without they must go to Court. This saves time and is often cheaper for the defendant who would else have to pay more with an in-court settlement. The risks for the two parties are reduced with a structured settlement as per which the defendant is contractually must to pay the plaintiff. Even, attorney costs for an out-of-court negotiated structured are lower than what they would be if a controversy were to be filed in court.

Attorney reward can come down by as much as 8% to 10% for a structured achieved out of court. This can mean a saving of thousands of dollars for the defendant as settlements can often run into more than a million dollars! Structured settlements permits insurance companies to provide payment to claimants at a lower cost and the payment schedule can be established according to a claimant's convenience. A structured settlement also can be used to provide for certain costs of a person right from the stage when he is a minor. For example, the cash can be utilized to pay school costs. Periodic lump sums for an injured person can be used to make medicinal purchases and sustain oneself.

One of convenience reasons of structured settlements is that they can be availed in many formats; these include lump sum payments that are made periodically when funds are required for medical expenses, education or marriage; percentage increase annuities that offer annually increasing payments that help against inflation; deferred annuities that enable to defer the commencement of payment to a later date; period certain annuities that can be connected with a lump sum for receiving payment over an assured period; joint and survivor annuities in which payments are continued to the survivor annuitant if the first annuitant passes away.

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