Author Box
Articles Categories
All Categories
Articles Resources

Settlement Annuity

April 24, 2012 | Comments: 0 | Views: 169

A Structured Settlement is a guaranteed stream of future payments. They are referred to in the tax code as periodic payments. Originally they could only be used in physical injury cases where all the money received for damages would be excluded from the recipient taxable income. However it is now possible for certain non physical injury cases to be structured even though the money for damages is considered as taxable income. With almost every structured settlement there is an underlying asset that funds the payment obligation. This asset is usually an annuity. This is why companies that offer cash for annuities aggressively market to people with structures.

A person with a structure can be tempted by these cash for annuities advertisements if they would feel better off with a cash lump sum rather than the guaranteed payments they are due to receive in the future. Often times this is a mistake, because people who accept a sell structured settlement offer are sometimes giving up their only reliable source of income. However, sometimes it is not a bad decision because the settlement one has might consist of irregular payments that were not designed to meet the persons needs.

If you have a structured annuity and want to engage in a Cash for Annuities transaction with a company that offers cash for annuities then you should be aware that the transaction has to be approved by a court. There is a section in the tax code that enforces this by imposing a huge tax on the transaction if it is not approved by a court. Some companies might try to represent how quickly they can get someone a lump sum of money but it is all contingent on when a court date can be scheduled and if the court approves it.

When someone is the victim of a personal injury at the alleged fault of another person then a lawsuit can be filed to resolve any dispute over who is liable for the financial damages of the victim. Financial damages include but are not limited to medical bills and loss from time at work. Pain and suffering are also considered damages but are usually preceded by financial damages before they are given any consideration for monetary value.

The companies that advertise these sell Structured Settlement deals will often discount the payments at a high rate. This is why it is very important for the personal injury victim to shop. They should not only discuss who much money can be offered but also how quickly the deal can be completed. Some companies will combine deals together which could cause someone to wait necessarily while other deals are being prepared. Since time is money for the payee what originally sounded like a better deal from one company might turn out to be not so good if the payee is required to wait longer than what was expected. Thus a payee should only sell their payments as a last resort to take care of an unexpected emergency and should carefully negotiate all the terms and conditions with respect to the cash lump sum being offered and the time that should be expected to complete the deal.

Uttam Sharma is an trainee engineer and writer in Business related topics. For more information on structured settlement services Then visit STRUCTURED SETTLEMENT

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Sell Structured Settlement

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 303

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 288

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 300

People may still decide to sell their entire structured settlement if the financial demand is sizable. A number of people sell structured settlements in order to invest in additional effective

By: Stephan Baldwinl Finance > Structured Settlementsl May 30, 2012 lViews: 141

There are several reasons someone could wish to sell a structured settlement. They may need the cash to fulfill their fundamental living expenses or they may just desire to invest the money for their

By: Stephan Baldwinl Finance > Structured Settlementsl May 15, 2012 lViews: 170

Structured settlements are a kind of monetary agreement where an individual can transfer the claim to expected installment payments for structured settlement lump sum of money. The money coming out

By: Stephan Baldwinl Finance > Structured Settlementsl May 12, 2012 lViews: 151

Ever hear about pre settlement funding? Neither had I, but the simple fact is it's an answer -albeit one you have to pay for- to the issues that arise immediately following an accident and waiting

By: Dalia M Davisl Finance > Structured Settlementsl May 04, 2012 lViews: 149

To accurately calculate the current worth of a structured settlement or annuity, enter the applicable discount percentage (8- 20%) followed by the payment schedule of the settlement or annuity. To

By: Robert Batchl Finance > Structured Settlementsl April 17, 2012 lViews: 151

If you want to know what a structured settlement is and how it works, this article might be helpful. This form of arrangement is mostly concerned with the amounts of money paid to an individual after

By: Steven Rossiil Finance > Structured Settlementsl April 11, 2012 lViews: 130

Discuss this Article

comments powered by Disqus