 |
Structured Settlements Offer Advantages over Lump-Sum
Payments
A structured settlement, which offers injury victims cash
payments through a long-term annuity as compensation for their
damages and medical expenses, offer a number of possible
advantages over payment in a lump sum. While the lump sum payment
is the traditional way for responsible parties to pay accident
claims, the structured settlement offers payments over the span
of an agreed-upon period of time. This length of time may span
from several years up to the remainder of the life of the injured
party, depending on the severity of the accident, the amount of
money involved, and the agreement reached between the two
parties.
Depending on the specific circumstances of the case, structured
settlements can have numerous advantages over a lump-sum
payment:
- They are tax free. Thanks to a 1982 change in the Federal
tax code, payments on a structured settlement are free of state
and Federal taxes. The paying party funds the settlement
through the purchase of an annuity which earns the interest to
fund the continued payments. This is not the case with a
lump-sum payment, which the injured party must invest
themselves. Any interest earned on those investments are
taxable.
- They are potentially safer. Most people who come into a
large sum of money suddenly find that they are quite popular
with long-lost relatives, unscrupulous purveyors of investment
schemes, and good, old-fashioned thieves. By receiving payments
in substantially smaller amounts, the beneficiaries of a
structured settlement have far fewer worries about having
others take advantage of them, which could leave them both poor
and without adequate medical care.
- They are simply less trouble. It's difficult enough to
adjust to changes in your life if you are seriously injured
without having to also take the new responsibility of investing
and managing a large sum of money. Not only must you invest the
money, but you must invest it wisely, knowing that it must
continue to fund your living and/or health care expenses. The
regular payments of a structured settlement, along with their
tax-free status, simplify day to day living considerably.
While they are not ideal for everyone, particularly those who
are experienced investors or those who need a large sum of
money at once for immediate medical expenses or the purchase of
a home, structured settlements can offer a simpler, safer
payment solution for many people who are victims of an accident
or injury.
©Copyright 2005 by Retro Marketing. Charles Essmeier is
the owner of Retro Marketing, a firm devoted to informational
Websites, including http://www.StructuredSettlementHelp.com/
and http://www.HomeEquityHelp.net/
MORE RESOURCES:
Father paved way for Street's debutDenver Post, CO - Nov 17, 2008... and Nixon Coming" — on Monday, at the Austin, Texas, offices of The James Street Group, a financial firm that specializes in structured settlements. ... |
Structured-Settlements - Google News
|
|
|
RELATED ARTICLES
Investing in Structured
Settlements
Often some derelict will be awarded some huge amount of
money from a noble company due to a run away jury in a
Kangaroo Court. Since many times the company paying the
money out agrees on a structured over time settlement, the
plaintiff of course is a lowly human and has lots of
desires for riches and he has little if any cranial
capacity to understand the enormous gift the courts have
grated him as our nation turns in to a socialist quagmire
of re-distributing wealth to those who do not deserve it.
How To Form a UK Limited
Company
When starting a business, a large number of people go down
the route of forming a limited company or, to give it its
full title, a limited liability company.The alternative for
someone starting up in business on their own is to trade as
a sole-trader.
A Revolutionary
Fundraising Opportunity -- Life Settlements
Amid fundraisers' growing concerns about the current
charitable giving climate, dampened by the erratic stock
market and shaky economy, a new fundraising opportunity has
emerged - Life Settlements.What is a Life Settlement? A
Life Settlement is the sale of an existing life insurance
policy for a lump sum of cash that is more than the cash
surrender value.
Surviving High Debt
States
Are you more likely to have more debt according to what
state you live in? In a recent report done by Experian on
the debt averages per state, the answer is yes! The report,
compiled from approximately 3 million consumers nationwide,
shows that the North East states of New Hampshire,
Connecticut and Rhode Island have the highest average
overall debt in the nation of $16,845, $15,314 and $14,643.
The report measures overall debt of a consumer; everything
present on a credit report, including credit cards and
installment debts but excluding mortgage debt.
The Cost of Not Having
Money
The self-esteem factor of not having enough money is
underestimated. You know what I mean don't you? The agony
of financially struggling and the ecstasy of financial
abundance are dramatically different moments in a person's
life.
Structured Settlement as
an Investment Vehicle
You always hear people talking about the latest investment
vehicle they're using. It's water cooler talk, dinner table
talk, phone talk, it's everywhere talk.
Keeping the Lawsuit End
in Mind
2 key points to stay focused on, as you are settling your
lawsuit; a quick and fair settlement and consideration for
current and future needs. The process of settling a lawsuit
can be a tedious and mysterious event.
Structured Settlement -
Guaranteed Income for those with Disabilities
Up until twenty years ago, anyone who won a lawsuit as a
result of a claim involving worker's compensation, wrongful
death or accident had to accept a lump sum payment as their
compensation. The payment would be intended to be invested,
with the beneficiary living off of the proceeds for as long
as their recovery was expected to take.
Options for Lawsuit
Settlement Winners Receiving Periodic Payments
On January 22,2002, President George W. Bush signed into
law a bill that protects individuals who must sell their
structured settlement payments to meet unplanned financial
needs.
A Structured Lawsuit
Settlement Seemed Like a Good Idea at One Time
You are receiving payments spread out over months, years,
even a lifetime. It's great when the money arrives
but the payments are often too small or too spread out to
really satisfy your needs.
Annuity Transfer - What
Are the Risks
Many people who know in the back of their minds that they
got the possibility to transform a monthly payment or
annuity long term payments into a big lump sum and by that
to relieve some temporarily financial problems, or need to
buy a new car or a house or help their children and so
forth are tempted to exercise this process into action.
Although it is a very natural feeling and sometimes even a
real life need or deep inner quest for power and control,
it is not in their best financial interest to say the
least.
The Target Capital
Structure
Firms can choose whatever mix of debt and equity they
desire to finance their assets, subject to the willingness
of investors to provide such funds. And, as we shall see,
there exist many different mixes of debt and equity, or
capital structures - in some firms, such as Chrysler
Corporation, debt accounts for more than 70 percent of the
financing, while other firms, such as Microsoft, have
little or no debt.
The Cash Now
Question
If you have ever been in a bind for cash you know the
stress, the weight of not being able to pay your bills. In
these desperate times, desperate measures are often taken.
What is a Trust and what
are the Benefits?
Trusts are becoming a popular way to structure business and
personal affairs. If you are considering using a trust in
any way, you should be clear on the legal obligations and
the relationships involved.
Should You Sell Your
Structured Settlement?
The courts have just awarded you a settlement in the amount
of $1.3 million dollars for injuries you sustained while
using the Widget Corporation's product.
Structured Settlements
Offer Advantages over Lump-Sum Payments
A structured settlement, which offers injury victims cash
payments through a long-term annuity as compensation for
their damages and medical expenses, offer a number of
possible advantages over payment in a lump sum. While the
lump sum payment is the traditional way for responsible
parties to pay accident claims, the structured settlement
offers payments over the span of an agreed-upon period of
time.
Lucky
Have you ever looked around and wondered how everyone is
buying houses? Are they really doing that much better than
you are? Maybe. Maybe not.
When Should You Not Cash
Out Your Annuity?
You should not cash out your annuity when it's not in your
best interest. Here are 3 reasons it might not be in your
best interest; it's too soon, you don't have a good enough
reason, it will cost you too much.
Class Action
Lawsuits
First of all, let me say that anyone who has been in any
way hurt or injured by any other party and settled through
a class action lawsuit, disregard this article. I am more
interested in the little frivolous lawsuits that award
pitiful amounts to offended parties who most likely had no
idea they were offended.
What is a Structured
Settlement
A Structured Settlement is an agreement between a personal
injury victim ( a Plaintiff ) and an Insurance company (
the Defendant )to compensate the Plaintiff by the defendant
with long term periodicpayments instead of a single cash
lump sum.Payments can be tailored to each individual
plaintiffs needs, to help meet expenses such as on-going
medical and living expenses, education, children needs
& support etc' The fixed annuity payments are tax-free
to the claimant, a cost-of-living adjustment (COLA) feature
is available, that can help offset the effects of inflation
over time, payments can continue as long as the claimant
lives thus providing him the maximum benefits.
|
|
