If you are among those people in Los Angeles County who are in a tight financial fix and the thought of selling a legal settlement, which you’ve been granted in the past occurs to you, don’t jump right into transacting a sale. Even if time is of the essence (you need to finance a child or grandchild’s college tuition, or to pay off a hospital bill or some other emergency situation) and you are in urgent need of cash, you need to take into consideration some important issues and matters before selling your legal settlement in order to obtain the best value for it.
Now if the main reason you want to divest partially of your structured settlement is to have some extra funds to embark on a vacation with your spouse or finance a home renovation or purchase, then there’s all the more reason to wait a while and discuss things thoroughly with your lawyer first. It is also crucial to find a reliable third party firm to facilitate the sale. Before even proceeding to authorize the transfer of your annuity or structured settlement into another person’s name, you need to know state laws/regulations that may place a restriction on the liquidation of a structured settlement.
There are tax matters that you may also have to deal with. A good company specializing in selling annuities or structured settlements will be well-informed on state laws and taxation matters, and may package the consultation with their professional fees.Good legal advice will be your safest bet. A legal counsel will ensure that you get the money you deserve. It is important to comply legally with the steps necessary to carry out a sale in your district.
Know How to Sell Structured Settlements or Annuities in Los Angeles County ?
Have you ever taken a lawsuit versus an organization or perhaps an individual that you claim caused you long-lasting damage as a result of their error or intentional misconduct? Did you win or settle your court case? If you do, you will need to be familiar with the basics about structured settlement, as it can be an essential solution to give some thought to. This article is intended to offer only basic info, not necessarily legal counsel. Please be sure to talk to an attorney related to structured settlement or any challenges hammered out in this post.Usually, when you win a lawsuit or resolve your court case the offender has to give you the judgment or settlement amount in a lump sum payment. Let's consider, for instance, you have a type of cancer brought on by asbestos generally known as asbestosis. You take legal action against the asbestos manufacturer, who agrees to resolve out of court for a million bucks. You receive a check for a million dollars, correct? That's just among the options, but a structured settlement will make more sense dependent upon your circumstances. A structured settlement pays you in installments over time rather than a single lump sum. Installment payments can be structured in numerous ways to suit your needs and to shield you from inflation. They may vary from a simple annual payment to complicated arrangements composed of an initial one time payment, month-to-month indexed payments, deferred payments, as well as exclusive conditions amongst the future care or death of the person covered.The Pros1) You are assured a source in income for life. 2) Tax administration: you might be able to extensively lessen the taxes you would have to pay the government on any investment income that could in any other case amass from investment of a one time settlement. 3) It is important to "know thy self" when making a decision about structured settlements.Are you the kind of person who would go to Nevada, do a little world travel, purchase loads of toys, and basically waste your dollars til you have nothing left of your million dollars in a year or two? If yes, a structured settlement annuity could be the best option.The ConsThere are some drawbacks, however, that you should pay attention to. 1) As soon as you agree with it, you are bound to the structured settlement conditions and terms. 2) You can't change it at some later date. Consequently, it is vitally important to be represented by a great attorney and tax consultant who will help make a deal for structured settlement terms that meet your needs, such as protection from rising inflation. If you do not expect to live for a long time, on the other hand, you may choose an agreement that guarantees a nominal amount payment even if you die before the guarantee time period comes to an end. This will protect your family or beneficiaries from being left without having economic resources.Even though structured settlement annuities are not befitting for all people, they can be very useful, dependent upon your needs. Your legal representative can help you in assessing whether the terms are well suited for you.
The sale of a settlement can take place in cases of structured settlements. Such settlements are arrangements for periodic payment of a plaintiff's claims made by financial or insurance entities. This facility of graded payments was first made available in the United States and Canada in the 70's, and it has its benefits.A plaintiff who has been awarded a structured settlement, but requires a large sum of money immediately, can sell the settlement to a financial institution that provides such services. There are many circumstances that may lead the recipient of a structured settlement to sell it for a lump sum. For instance, there may be insupportable medical or legal bills to pay. Or the recipient may need to make a purchase requiring substantial funds (such as a new house or other kinds of real estate). Selling a pre-existing structured settlement is a convenient recourse in cases when a person is not eligible for housing loans or further mortgages.If a recipient of a structured settlement is too old to derive maximum benefits from periodic handouts, a one-time payment is possible. In other cases, the recipient of a structured settlement may wish to make a potentially lucrative stock market investment. If there is a chance that the returns on the investment will considerably exceed the total value of the structured settlement, its sale to a willing buyer makes a lot of financial sense. On the downside, the payment received in exchange for a structured settlement will always be less than the total value. Also, selling a structured settlement for a lump sum is not advisable for people who have a history of inefficient financial management. This is especially true for people given to gambling or other vices. And, it is most certainly contraindicated in cases where the recipient's only means of livelihood are the monthly payments generated by a structured settlement.
You have probably heard the term "Structured Settlement" on a television or print ad and wondered what it meant. After all, the term is not a part of our everyday lexicon.A structured settlement is a contract under which an insurance company undertakes to make periodic payments to an injured party as part of a bodily injury claim settlement or to a surviving family member to whom a large settlement has been awarded. These are just two examples of where a structured settlement might be used. Structured settlements have become popular because they offer substantial benefits to all parties involved in the settlement agreement.A brief review of the dictionary reveals the following definition: a structured settlement is simply a financial package that permits a settlement to be paid in regular payment installments for either a set period of time or over a lifetime. In short, a structured settlement is a package that is tailor made for the individual or payee by the payer or an interested third-party. Some structures include immediate payment to cover any special damages that may have occurred or will occur.The system of structured settlements was first introduced in Canada in the early 1970's and spread into the United States very quickly. Within a few years, the idea had found its way to many countries including Australia and most member states of the European Union. Benefits of a Structured SettlementA structured settlement annuity provides a payment stream that is tax-free over a determined period of time. Most investment options such as stocks and bonds, real estate, savings accounts, and similar vehicles simply cannot match the flexibility and security of a Structured Settlement Annuity.Another benefit of a structured settlement annuity is that it can be designed so that payments are made over an extended period of time, even throughout the life of the payee. In the event of the recipient's death, a guaranteed portion of the settlement may be paid to the person's estate or to a named beneficiary.Structured Settlements have become quite common and offer the additional security of regulation by both Federal and State statutes. There are also provisions in IRS and Medicare/Medicaid guidelines which take them into account.Alternatives to Structured SettlementsIt's quite easy to see that a structured settlement can work to the advantage of all parties in a variety of circumstances. However, there are occasions when the beneficiary of a structured settlement would prefer not to have periodic payments, preferring instead a lump sum payment. Such might be the case where an individual would like an amount of money to purchase a home, perhaps to cover large medical bills or to pay off a mortgage.This option has also proved especially popular with lottery winners. There are a number of insurance companies and others that provide this service for a fee. In such instances the insurance company or another interested third-party makes the lump sum payment with a charge for expenses and interest deducted. It is important to consider these fees and read the fine print carefully to be sure that you are not signing away the bulk of your payment.How do the alternatives work?The settlement contract is sold to a financial institution which then accepts the periodic payments from the payer and gives the beneficiary a lump sum. Commonly, the financial institution involved will be another major insurance company. The insurance company charges a handling fee which will usually be calculated to take into account adjustments for interest charges and handling costs. Again, if you are considering taking this option you must bear in mind that the company buying the payments for a cash sum is in business to make money. The amount of the one-off payment will certainly be considerably less than the gross amount that would have been received over the original extended period.Unless the amount of the lump sum is very substantial and the recipient can be sure of consistent investment income, it's almost certainly going to be better to stick with the original arrangements. An exception might be where the recipient is a younger person in good health with a substantial expectation of gainful employment for the long term.Again, as with any contracts be sure to read and understand the terms of the agreement you are making. Make a list of questions and ask until you understand. It is also a good idea to cast a wide net when looking for an alternative to structured settlements as fees and services; and thus your bottom line can vary greatly.
Sell My Settlement Payments Los Angeles