Tag Archives: structured settlement

Getting Cash For Structured Settlements

Posted by on September 11, 2011 3 comments

Selling A Structured Settlement

Selling Structured Settlements

I've Got Cash From My Structured Settlement

You were awarded a structured settlement, and after a few years you have decided to sell it and get cash for a structured settlement. What do you do now? Well, the following are some steps that you should take so that you make the best decision. So, if you want to get money for structured settlement payments, this will take you through the first part in selling your structured settlement.

1. The first thing you will want to do is to figure
out what your financial needs now, present and future.
You will want to talk to an attorney or a financial
advisor.

2. The next thing to do will be to get in touch with
the provider of your payments, and find out the amount
left, the number of payments left, and your structured
settlement’s terms. Also get all of the contract
information so that you can give it to the buyer.

3. Figure out how much of your settlement you want to
sell. If you sell payments that will be coming shortly
after you sell, you will be offered more money than
those that are coming in the future.

4. Find a reputable structured settlement buyer and
make certain that you are comfortable with them.

5. Get quotes from different buyers, and weigh all
factors before making a final decision. These factors
include comfort level, experience, and reputation, to
name a few.

6. Finally, you will sign a contract with the buyer.
Make certain that you have your attorney read over the
contract before you sign anything.

You have chosen a structured settlement purchaser 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)
  • Your Attorney’s information

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 cash for the structured settlement.

Remember this is just a set of guidelines, and each situation is unique, and requires consultation with your attorney or financial adviser, before starting to sell a structured settlement.

 

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/

Allstate’s New Structured Sales Product

Posted by on August 7, 2011 2 comments

Allstate rolls out a structured sales product on oil & gas lease bonus payments.

It was announced this week that Allstate would be rolling out a “non-qualified” annuity funding vehicle that would allow for the structuring of oil and gas lease bonus payments.

While seemingly obscure to those who do not have land upon which they lease oil or gas rights to drilling or production companies, this market has substantial potential given the wide number of privately held or closely held businesses, as well as individuals, who might be interested in spreading the bonus payments they get in some years over a several year period.

To read the rest of the article, go to http://thelegalbroadcastnetwork.squarespace.com/the-lbn-blog/2011/8/6/allstate-rolls-out-a-structured-sales-product-on-oil-gas-lea.html

Insurance Companies Entering the Market (Again)

Posted by on May 13, 2011 No comments

5/12/2011
New life insurance companies entering the structured settlement annuity market bring more choices and competition. This is good news for all who benefit from structured settlements as a tool to aid the resolution of lawsuits and attorneys who structure attorney fees.

The first one is Berkshire-Hathaway, they tend to be specialists in long durations and/or deferrals.
Next is USAA, familiar to people associated with the military. Another A++ company, in addition to Berkshire Hathaway.
United of Omaha, part of the Mutural of Omaha Group.
Hartford Life Insurance.