Reexamining The Sale Of Your Structured Settlement
Filed under: Structured Settlements — Structured Settlement Expert @ 12:08 pm
The result of a personal injury case that is settled out of court is often the creation of a structured settlement. This term refers to a financial arrangement that is an alternative to simply handing over a lump sum of money to the person receiving the financial award. Rather, a structured settlement allows for ongoing periodic payments – comprised of the amount of the award split into payments.
These payments are not made directly to the recipient from the responsible party, however. Rather, an annuity is funded by the responsible party and makes ongoing payments to the recipient over the term of the settlement.
If there comes a time when the recipient of the structured settlement requires a lump sum due to financial circumstances, they may choose to sell all or part of their structured settlement payments.
At that point the payment recipient may choose to sell their future structured settlement payments to a purchasing company in exchange for cash in hand. Or they may choose to sell only partial payments – either a particular number of future payments or a percentage of future payments.
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