Meet Changing Needs With A Structured Settlement Sale
Filed under: Structured Settlements — Structured Settlement Expert @ 5:11 pm
When a personal injury case results in the creation of a structured settlement the claimant gets periodic payments backed by an annuity. These payments are usually not subject to income taxes.
As nice as guaranteed income over time happens to be, occasions do arise where a lump sum payment might be more beneficial. This is where a structured settlement sale can make a great deal of sense.
Companies that buy structured settlement payments agree to receive the periodic payments in exchange for a lump sum payout. The arrangement can happen in one of two ways, but both options do call for court approval to reach fruition.
The first way to receive a structured settlement payout is by selling all future payments. This means the recipient will get a lump payout, but no more monthly payments. The company that buys structured settlements will receive them instead.
The second option is a partial sale. This involves selling some of your payments for a particular amount cash. This flexibility lets the recipient receive cash to meet their needs as well as maintaining a portion of the future payments.
Both options are quite viable for helping a person meet changing financial needs. When circumstances change, structured settlement sales can pay off to help a person adapt with money in hand.
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