What Should I Do? Take the Structured Settlement or the Lump Sum Payment
Benefits of Structured Settlements
When faced with a decision about having a structured settlement, or going with a one lump sum payment, there are a few things to remember. After some consideration given to the dilemma of whether to take a lump sum payment or a structured settlement, some people have found it to be better to have the structured settlement.
Here are the benefits of choosing the structured
settlement.
- 1. The money from a structured settlement is not
liable for taxes.
2. When you receive money over a period of time,
instead of all at once, you don’t usually have to
worry about the people who go after those with a lot
of money.
3. Recipients of structured settlements don’t usually
have the problem of where to invest the money. They
are using it for their day-to-day living expenses.
4. Very often, when a structured settlement is
offered, there isn’t a worry about having to go to
court. It’s usually settled out of court, and the
person who is being offered the structured settlement
saves court costs.
The lure of a big sum of money makes people really consider selling their structured settlement for cash.
But as we have seen, the structured settlement can really be the better of the two choices.
Often times, when people have a large lump sum of money they forget that the money isn’t going to last forever. They going on a spending spree and the money is gone before they know it. With a structured settlement, you are sure to have money for the future and there isn’t the worry about spending it all at once.
Of course, there will be people who wisely invest their lump sum, taking the chance that their investment will make even more money for them. But, as we have witnessed in the last few years, investments can go south (down) rather quickly.
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