Structured Settlement Money

Posted by on September 11, 2011 7 comments

 

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Structured Settlement Money

Structured Settlement Money Questions and Answers

Structured Settlement Money Questions

Structured settlement money helps the victim of an accident get money as a payment made in regular installments over a period of time. This is different than getting a cash award in a lump sum payment up front.

When you learn that you are going to receive a structured settlement, a lot of times you have questions about what it really is. So here are some of the more frequently asked questions, other than the most important, which is “How or when do I get my structured settlement money?”:

1. What is the definition of a structured settlement?

A structured settlement pays the person who has won the settlement over a period of time, instead of just paying all at once.

These payments are sometimes called “periodic payments.” In fact, here is what Wikipedia says about it “A structured settlement is a financial or insurance arrangement, defined by Internal Revenue Code as periodic payments; a claimant accepts to resolve a personal injury tort claim or to compromise a statutory periodic payment obligation.” Often, a structured settlement will be created through the purchase of one or more annuities, which guarantee the future payments. So, normally you will need to investigate annuities as well.

Structured settlements are fairly recent in the scheme of reparations. They began in Canada and quickly spread to the United States, England and Australia. Regulations vary among countries.

2. Am I able to put down my structured settlement money as collateral for a loan?

Usually, it can’t be listed as collateral, but one way that it does help is that you can list it as a form of income. This can be very helpful if you are making a big purchase, like a house.

3. Will I receive interest on money I get from a structured settlement?

No. The interest is included and, is therefore, tax-free. The only way to get additional interest, is to invest your payments. Of course, that money would be taxable, just like any other investment.

Remember, this is your money, so make certain that you ask questions if there is something that isn’t perfectly clear to you. Be sure that you understand everything and that everything is clear to both you and to your attorney.

Once the papers are signed, it’s non negotiable and you have to be happy with what you have been given, so it’s a good idea to be clear on all the details. Ask all of the questions that you want to know, and get all of the facts.

Structured Settlement Money Benefits

Several benefits are obvious when choosing  structured settlement money  in periodic payments, getting it over time,  as opposed to a lump sum payment.

The first benefit is that the periodic payments received by the recipient of a structured settlement is exempt from all taxes.  Under section 104 of the Internal Revenue Code of 1986 and it is clearly stated that structured settlement money in the form of periodic payments are totally tax free at both state and at federal levels.

The second major benefit could be that structured settlement money given out over time, when needed, prevents loss of the money due to  bad advice or bad judgment.  We have all heard the horror stories of those who have received huge lump sums of money and within a very short period of time, have ended up broke.  Keeping your structured settlement money, receiving payments could help avoid such disasters.

There are ways your taxes may be affected, beneficially or adversely, depending on the way you receive your settlement. It is always helpful to get advice from several, trusted, unbiased advisers before signing on the bottom line. You should consider tax obligations, total payout, current and future needs and other aspects of the arrangement. A financial adviser, tax accountant and your attorney will provide input.

Get Cash for Structured Settlement

If you are trying to get cash for Structured settlement payments, there are certain documents you will need to gather and you will need to thoroughly research the company that is going to buy your structured settlement.  But those are not the only things that you will need to consider.  You will need to ask yourself this question, “Will selling my structured settlement really be the best thing for my financial future?”

If your answer to this question is yes, then there are ways to “cash” out your settlement and get your structured settlement money, which we’ll discuss in a later article.

 

 

To find out about annuity transfers, try http://www.annuitytransfers.com/

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Longevity Annuities

Posted by on May 15, 2012 No comments

With a large population segment that will undoubtedly live much longer, more options are needed to insure that there is a steady income stream for the lifetime of the retiree.

“In February, the Department of Labor and the Department of the Treasury issued proposed new rules aimed at giving 401(k) plan participants more options to invest in annuities that guarantee a lifetime income stream.”

But, when offered the oportunity to defer up to 25% of their account balances into an annuity that starts paying out further into retirement, such as at age 80 or 85, only about 1% of participants at those companies do so.

Apparently, there are several issues needing resolution before many people choose these longevity annuities.

To read the entire article, check out http://www3.cfo.com/article/2012/5/retirement-plans_401l-guaranteed-retirement-income-proposal-401k-defined-contribution-mercer-bridgehaven-cerico-iric-tejera.

A Short Note On Structured Debt Settlement

Posted by on May 4, 2012 No comments

If an organization is responsible for any injury or death of a person, then that organization may provide regular payment to that person or family members of the deceased person over a period of time. This process is known as structured settlement. This is a process of providing compensation to the victim in the form of installment payments instead of a lump sum amount. In case you have faced injury due to the malpractice of an organization, you can become eligible for a structured debt settlement to compensate for your financial costs (due to the injury) and financial loses.

Understanding the process of structured settlement

Structured settlement involves payment in parts which is done over a period of time through an annuity system. The victim or the family members of the deceased (in case of death) may file a case against the organization (that is responsible) for the damage done. The issue can be resolved (by the organization) by offering a structured debt settlement to the claimant. To obtain structured settlement, the claimant must drop the case that is filed against the organization. It should be done before the case is taken to the court.

Cases in which structured settlement is applicable:

  • In case of serious injury, that will require long-term medical treatment.
  • Inability to work due to the injury or the inability to earn the same level of money that the person used to earn before.
  • In case of death of a person where his/her family members will be in need of a regular income.
  • Disability caused by the injury (temporary or permanent) which may call for a long recovery period.

The benefits of structured settlement

Severe injuries or death are intensely traumatic. They can make the situation worse by calling for massive financial trouble. Structured settlement can be a solution to at least the financial problems. You can take care of the medical debts and other forms of debts (as a result of the injury) by receiving structured debt settlement. Given below are the benefits of structured settlement:

1.) Financial security can be obtained – Through the process of structured settlement, you’ll be getting regular payments over a period of time instead of one lump sum amount. It would give you a sense of financial security as a regular flow of income will come your way.

2.) Freedom from tax liability – You’d not be required to pay any tax for the money received through structured settlement. This is indeed an advantageous feature of this method.

3.) Court hassles can be avoided – Court involvement will call for a lot of costs from both the defendant’s and claimant’s end. The defendant party would often prefer to offer a structured settlement to avoid the hassles and charges of the court. It would be beneficial for you as well because you can eliminate court costs and receive a regular flow of payment. It will spare you of the need to go to the court whenever called for.

Structured settlement has its share of disadvantages as well. In case of senior citizens, this may not be a good plan due to life expectancy. It would be better for them to receive a lump sum amount with which they can live their life according to their wishes. In other cases, a lump sum amount can be more beneficial as it can be used to make more through investment or other money making medium.

Nevertheless, structured settlement can be a good way to ensure a regular flow of income. You can get rid of your debts caused by the injury with the help of this structured debt settlement.

Selling Structured Settlements For A Lump Sum

Posted by on April 26, 2012 No comments


Why Do People Sell Their Structured Settlements?

There are plenty of people who receive structured settlements, and some of them are happy with getting
that set amount each month. But some of them decide that they aren’t happy with waiting for the money,
they want it right away.

There are a few reasons why people decide to sell their structured settlement in order to get their
money in one lump sum.

1. Money for emergency – One reason that people sell
structured settlements is that an emergency comes up,
like a needed operation. No one knows when something
might come up for themselves or for a member of their
family.

2. Money to invest – Another reason is that they want
to invest some of the money. If the stock market is in
good condition, they might choose something to invest
in with the money they get from the lump sum
settlement.

3. Money to spend – Something that people who have
received a structured settlement want to do with a
lump sum is to buy a house, or maybe take a trip.

4. Money for the future – It’s sad to say, but
sometimes people who are receiving a structured
settlement have a shorter lifespan because of their
injuries, so they want to make sure that their family
is taken care of.

No matter what people choose to do with the money they receive from selling a structured settlement, some people find that this is the right choice for them.

Questions To Ask Structured Settlement Buyer

Posted by on April 26, 2012 No comments

You have chosen a buyer for your structured settlement
and you are wondering what the rest of the steps are.
Now we’ll take you through the rest of the process so
that you know what you should do to make the process
as easy as possible.

1. Once you have chosen your buyer, you will need to
provide the buyer with some information. The quicker
you gather the information, the less time it will
take, but the process can last anywhere from two to
fourteen days.

The things that you may need to provide are the
following:

Release/court judgment/settlement agreement The
contract from the payment provider or insurance
company/Annuity policy Bank statement or stub to
verify payment Your own personal information, which
could include a state issued ID or driver’s license.
Copy of divorce decree or marriage license (if it
applies) Any documents discharging a bankruptcy (if it
applies) Information about your lawyer

2. After everything is in the buyer’s hands, this is a
good time to ask them what about the underwriting
process and how it works. Beware if the buyer says it
will be a short processing time.

3. Once the underwriting process is done, the buyer
will give it to a judge to review. Ask your attorney
if you should appear, and if it’s in your best
interests. Find out from the buyer what the costs are
and who will be responsible to pay them.

4. If your request is approved, the buyer will give
you the money.

Remember this is just a set of guidelines, and each
situation is unique.

Large Structured Settlements

Posted by on April 26, 2012 No comments

Tips For Getting A Large Structured Settlement

When you are in an accident, you want to make certain that you can get the biggest settlement that you can get. So here are some tips so that you can get a large structured settlement.

Make sure the evidence at the scene is secure

You want to make sure that, without a doubt, the
company knows that you are not at fault. So you want
to make sure that everything is as it was in the
accident.

Don’t make assumptions about injuries

Many injuries don’t show up until later, so you don’t
want to assume that you aren’t injured.

Keep up to date with appointments

Go to see a doctor, even if you don’t feel injured,
and make sure to keep your appointments. If you don’t
go to the doctor, then it will be harder to explain to
the insurance company that you are really hurt.

Keep track of lost wages

Make certain that you have doctor’s notes for days
that you have missed after the accident and keep track
of what you have lost in your wages.

Don’t start low in negotiations

One of the rules of thumb is that the insurance
company won’t ever go higher, but they will come down.
So don’t start at the lowest amount you’ll settle for,
but start higher. This way you have negotiating power
without losing anything.

These are just a few of the things to remember when you have been in an accident and are expecting a
settlement. If you remember these tips, they will help you to get a larger settlement from the insurance
company.

Choosing a Buyer for a Structured Settlement

Posted by on April 26, 2012 No comments

Structured Settlement Buyer

There are numerous reasons to sell a structured settlement and get a lump sum payment. There could be unexpected medical expenses or other immediate expenses. Or perhaps the money is needed to purchase a home. But whatever the reason there are things that need to be thought out before dealing with a structured settlement purchaser.

So how do you decide where you should go to so that you can sell your structured settlement and get a fair deal with it? How do you know which of the many companies or individuals would be a good fit for you?
Structured Settlement Buyer
There are a couple of places that you can go, and things that you can do before you make your decision.

Talk to friends and family

One of the first and foremost things you should do is talk to people you trust and who have gone through the same type of thing. You know that you can trust their judgment and they will be honest.

Search online

If you don’t know of anyone who has had a structured settlement and sold it, then you can do some research online about the different places that you can go to. You may be able to find people who have gone there and were satisfied with the results.

If you have decided to sell your structured settlement, be sure to do your homework and see where you will get the best offer and deal. When you are well informed, you will be able to make the best decision that will be right for you. Do not be afraid to get second opinions and to look around to see what is available.

And, as usual, don’t do anything that involves a great deal of money without contacting your financial adviser or attorney. They may have the information that you need while you are looking for the right structured settlement buyer.

Living Benefit Riders

Posted by on February 5, 2012 No comments

Income or Living Benefit Riders

One of the hottest topics in the annuity industry is the income rider. These are also referred to as living benefit riders. These particular devices can be somewhat complex. Stan the annuity man is going to discuss income riders.

Financial Outlook for 2012

Posted by on January 1, 2012 1 comment

What did you think about 2011, well…..

Fasten Your Seatbelts, It’s Going to Be a Bumpy Year

Sure, U.S. stocks sank at various parts of the year (2011), including the period after the debt downgrade. But a late-year rally left major averages about where they began, as if the year was placid, not full of panic.

Last week, stocks fell 0.6% leaving the Dow Jones Industrial Average up 5.5% on the year. The Nasdaq Composite closed the year down 1.8%, and the Standard & Poor’s 500-stock index was flat (actually off 0.003%).

Predicting what 2012′s surprises will be is no easy task. Last year’s Sunday Journal outlook warned of rising interest rates and falling bond prices. But the experts were confounded: U.S. government bonds continued to rally.

We did get some predictions correct, such as anticipating China’s ability to rein in inflation without causing a severe economic downturn. It’s not clear whether Chinese leaders will continue to have such success in 2012, however.

Read more about some possible surprises for 2012 and beyond, based on views of some leading investors and analysts here: http://online.wsj.com/article/SB10001424052970204720204577128990068112940.html

 

Financial Planning 2012

Posted by on January 1, 2012 No comments

Looking forward for the coming year and hoping for something better than 2011, in Financial Planning.

Financial advisers look ahead to 2012 and they discuss potential investment strategies, red flags and more.

This year has been characterized by wild daily fluctuations in the markets as investors reacted to various bits of good (Europe has solved its debt crisis!) and bad (Europe has not solved its debt crisis!) economic news.

But much like a roller coaster, the markets ended the year about where they started. The S&P 500 ended the year up 0.4 percent while the Dow Jones industrial average was up 5.5 percent. To shed more light on what the next 12 months might look like, we turned to a handful of money managers and financial advisers in Charlotte and the Triangle. Each answered a series of questions about investing strategies, economic indicators to watch in the months ahead and what they’ve learned from the global economic crisis.

Although it should go without saying, we’ll say it anyway: None of this advice is foolproof. Investors should do their own research, stay diversified and assess their own appetite for risk.

Read more here: http://www.charlotteobserver.com/2011/12/31/2887468/financial-advisers-look-ahead.html#storylink=cpy

Personal Injury Compensation in the Form of Structured Settlements

Posted by on January 1, 2012 2 comments

The article below discusses the benefits of structured settlement payments as compensation for an injury you may have suffered and have become entitled to damage compensation.

 

 

Compensation for My Personal Injury

If a personal injury attorney determines that you do, indeed, have a valid personal injury case, then you will be entitled to damages.

ORLANDO, FL, December 31, 2011 /24-7PressRelease/ — If a personal injury attorney determines that you do, indeed, have a valid personal injury case, then you will be entitled to damages. Damages are basically the expenses or losses you have incurred due to the negligence of the other person and may included both economic and non-economic factors. An economic expense or damage would be the cost of doctor visits, while a non-economic damage would be pain and suffering as that cannot be actually measured or assigned a cost like a doctor’s visit can. The damages to which you will be entitled all depend on the injuries you suffered and the circumstances of your injuries (i.e. if the defendant shows malice or reckless disregard for your safety).

Personal Injury Damages

The following is a comprehensive list of the damages available in personal injury claims. Please keep in mind that you will not necessarily be entitled to all of the damages listed below, but more likely, you will receive some combination of the damages:

- Present and future medical expenses

- Present and future lost wages

- Household services (the cost of hiring someone to maintain the plaintiff’s house during recovery)

- Mental anguish

- Loss of consortium (loss of the benefits of a relationship because of the accident or injury)

- Loss of enjoyment of life

- Pain and suffering

- Permanent disability

- Disfigurement

- Funeral expenses in the event of wrongful death

Settling a Personal Injury Case

Personal injury cases are settled either in a formal lawsuit or, more commonly, through an informal settlement (a negotiation between the plaintiff and defendant). When the verdict or negotiation is reached, the compensation will be awarded. Typically, minor to moderate injury cases are compensated with a lump sum payment, while more severe injury cases are often settled with a structured settlement. There are some benefits to structured settlements such as:

- Structured settlements are often tax-free income because they are usually in the form of annuities or U.S. Treasure Securities, which are not taxed at the state or federal level.

- Structured settlement payments are made over time, so the injured receives an income for several years to a lifetime.

- Often the injured can schedule the payments to best suit his or her needs.

If you feel you may have a personal injury case and live in the Orlando, Florida area, please visit the website of The Law Offices of Michael V. Barszcz, M.D., J.D. today to schedule a confidential consultation or to learn more about personal injury law at www.themdjd.com.

 

This article appeared here at:  http://world.einnews.com/247pr/254976