Structured settlement purchasing companies, also known as factoring companies, provide services to those who sell their structured settlement payments. These companies offer deal owners lump sums of cash in exchange for rights to future payments or parts of future payments.
A Structured Settlement Annuity(SSA) provides periodic tax-free payments over a period of time, specifically designed to meet the needs of the injured party. Specialized consultants facilitate the liquidation process and help design and negotiate the structure.
Structured annuity contracts are protected by your state's guarantee association, in which life insurance companies must reserve a reserve with the SGA in the event of the company's insolvency. The key differences between these settlement options are in the areas of financial security and long-term taxation. If you agree to take your compensation as a structured settlement, rather than receiving a large amount from the plaintiff, you will receive periodic payments over a fixed number of years. If the plaintiff later decides that they need a lump sum of cash instead of installments from their settlement, they can turn to a company such as CBC Settlement Funding to sell all or part of their structured settlement annuity.
You can “collect” your future structured settlement payments by selling them to a factoring company at a discount if you need immediate cash. Next, you can learn how a structured settlement works and review some of the things you should consider when deciding to accept a structured settlement or a one-time payment if you win or resolve your lawsuit. If you are interested in selling your annuity or structured settlement payments, a representative will provide you with a free, no-obligation quote. Structured settlements can also be designed to increase payments over the years, starting relatively low and ending up.
Whether you choose a one-time payment or a structured settlement will depend on many factors, including your tax liability, how you plan to spend the money, and whether you need help with manage a large sum of money. The key difference between adults and minors is that minors cannot control their settlement payments, so parents are in charge. A structured settlement is a unique opportunity to resolve a personal physical injury claim, including wrongful death, with tax-free benefit payments. However, if the state takes the community property route, the state can divide the agreement regardless of whether the agreement was received, either before or during the marriage.
The settlement is then spread out into a series of periodic payments over an agreed period of time rather than a one-time payment in most cases. Finally, there is an additional commutation clause in some agreements that allow the inherited annuity to be paid in a single payment, so check that as well.