Structured Sale Annuity Tax Minimization Strategies

Assuming asset appreciation, capital gains tax will be due when selling a property, business, or business practice in the year of the sale. In most cases, the taxable gains will amount to a substantial sum of money owed by the seller in a short period of time.
For those who are selling a significantly appreciated asset (business interest or property), the federal tax liability can be very burdensome. A structured sale annuity helps to spread the capital gains over several years so as to alleviate a taxable windfall while also providing reliable payments and income to the seller.
How Does a Structured Sale Annuity Work?
The seller and the buyer agree upon a purchase price for the asset. As oppose to the buyer (or bank) paying this amount lump sum to the seller, the funds are pledged to an assignment company. This initial act avoids constructive receipt for the seller and satisfies current I.R.S. rules and regulations.
The assignment company then purchases an annuity with the proceeds from the sale. The annuity is structured in a agreed upon matter to make future payments to the seller. The seller has several options when structuring the annuity and can tailor the payment stream to his needs.
The buyer is released from any future monetary obligation as he has made full payment for the asset to the assignment company. In this way, the seller will not have to rely on the ability of the buyer to make future installment payments.
In order to qualify as an installment sale, the buyer must take at least one payment in the first year. Thus, the payment stream cannot be deferred for longer than 12 months. All funds do not need to be assigned to the annuity however. In some cases, a portion of the sale is taken lump sum and another portion is structured over time.
There are three parts to a structured sale annuity:
1. The non-taxable recovery of the asset (cost basis)
2. The gain or profit from the sale (appreciation)
3. Earned interest from the annuity account
The future annuity payments will consist of an equal portion of each part. The seller will receive a portion of the cost basis, asset appreciation, and interest each year (or month) for the duration of his structured agreement. Those who are looking to establish periodic income payments during retirement can benefit from this arrangement after selling a business, property, or practice.
Why Use An Annuity Account?
Annuities are valuable based on their guarantees and safety. In times of market turmoil, a periodic annuity payment from a highly rated, well capitalized insurance company will provide the peace of mind, safety and regular income needed by most investors.
There are very few companies underwriting structured sale annuity accounts, but those that do are some of the largest and safest in the world. The investment interest gains provided by these accounts will vary depending on market conditions, but they will always have a fair minimum guarantee.
The periodic annuity payments are guaranteed. Should the seller pass away prematurely, then the payments will continue to a named beneficiary as established by the annuity contract.
Tax Advantages of a Structured Sale
A structured sale annuity provides the advantage of simply spreading out capital gains over several years. As oppose to writing a large check to the government over one or two years, those gains will be held in the annuity and earn substantial interest over time. That interest is then payable to the seller each year.
Should the seller have future capital losses, then they could be written off against the portion of capital gains that are withdrawn from the annuity each year. Future non-qualified stock trades or property sales for losses could count against the capital gains distributions from the structured annuity.
In summary, an installment sale will not be appropriate for every situation, but for those with significant asset appreciation who are looking to spread out their capital gains while also providing a guaranteed stream of income will find that a structured annuity sale can be a very valuable investment plan.

A.M. Hyers has been working in the insurance and investment industry for over fourteen years. He owns and operates Hyers and Associates, Inc. an independent insurance and annuity agency doing business across the U.S.
His agency specializes in retirement planning, wealth transfer, and tax minimization strategies. They work extensively with structured annuity and life insurance policies for the purpose of transferring and maintaining wealth.

What If Structured Settlements Did Not Benefit You?

With the expansions of businesses, capitalization, commercialization and consumerism the world of finance has seen a mammoth change in every aspect. Everything from banking to investments to financing is undergoing reforms and most of these changes are centered on the consumer. The increasing awareness among the consumers and their demand for services that are beneficial to them is also on the rise. Seeing the potential in consumer friendly services, most of the companies are coming up with products and services and financial devices that are consumer focused. They understand that now the secret to success is to keep the consumer happy.

One of the financial devices that have seen instant success in recent years is that of Structured Settlement - a system whereby a customer can choose to make a huge payment in installments as per his or her convenience and in accordance with the terms and conditions from the receiving end. Instead of the lump sum settlement the customer or the client gets to pay in small amounts spread over a duration of time. Guided by various rules and regulations, Structured Settlement and Annuity Settlements are decided upon mutual agreement. Structured Settlements are widely being used as a mode of payment especially where huge amounts are involved. This way is quite convenient for the one who is paying as the burden to pay a huge amount at once is cleared off immediately.

But structured settlements might not be the best option for everyone. Especially if you are on the receiving end, you'd rather receive a lump sum payment rather than your payment being broken over several small amounts. There might be quite a few things you could've planned to do with the money, if available all at once. For such individuals and companies, there are services offered by some firms which allow them to get the full payment at once. By just paying a certain amount of commission, you can get the entire amount that is due to you in one go and you can make good use of this lump sum money. If you have annuity payments that can be cashed upon, you can take the help of these firms to get the entire amount at once. Once the firm is sure of your credentials and that you will be able to pay off the entire amount in the stipulated period of time, they will provide you with the amount that you are due to receive. Thanks to the highly consumer focused economy of today that you can get things done your way, as it suits you.

Paying for College Using Grants

Paying for college can be difficult. The financial aid process is really confusing and parents and students both struggle with understanding the difference between a grant and a loan. You see, grants are a gift from the government that can be used to pay for school. You will never have to pay this money back. Loans on the other hand are just as the name implies, a loan. They accrue interest and will need to be paid once you finish school. Some people believe that grants are impossible to get. This is not true. There are grants out there and these can really help you to go to school without getting buried in debt.

If you want financial aid of any type, loans or grants, you will start the process by filling out a form known as the FAFSA. This application will allow you to determine what loans and grants you qualify for. You don't have to accept the loans if you don't want them, so it is always a good idea to fill this form out to see if you qualify for a grant. It is possible to be eligible for both loans and grants and generally if you receive a grant, you will also receive a loan so pay attention when the results come in.

Let's learn a little more about the 3 most common types of government grants that can be used for school so that you can have a better idea of what you are accepting and how the process works.

Pell Grants

The Pell Grant is the most common type of government grant that you will encounter. This program was established in the 1970s and receives more funding than some of the governments other grant programs. The amount available varies year to year and is entirely dependent on the government's yearly budget.

AC Grant

The AC or Academic Competitiveness grant was created to help those that are just starting out in college, the freshmen and the sophomores. This grant is awarded based on need and academic excellence. If you have great grades and strong leadership experience, you might qualify for this government grant for education.

SMART Grant

The SMART (Science and Mathematics Access to Retain Talent) grant is given to juniors and seniors in college that are pursuing a math or science degree. Check with your school for more information and to see if you qualify.

As you search for government grants, also make sure that you check with your state and see what programs they have available. Many states also have grant programs. If you need money for school, it is worth exploring all of your options. You can even find grant writing services to help you create a great grant application. By reading grant writing service reviews you can find a company to suit your needs.

Structured Settlement Frequently Asked Questions

There are some frequently asked questions about structured settlements that many people have. Here are some of the most common ones to help you get pointed in the right direction. Keep in mind though that there can be guidelines that apply that are very specific to a given situation.

Should I sell my structured settlement?

Some people are very happy to get a monthly, quarterly, or annual payment. It is enough for them to do what they would like to with the funds. Others though have large amounts of debt, medical bills, need to get a home or a vehicle, or want to buy a business. Therefore, it may be worthwhile to sell the settlement. You have to look at your own needs. The options you have will also depend on the laws that apply in the state where you live.

Is it legal to sell a structured settlement?

As long as there aren't any stipulations in the settlement about you not being able to sell it that you agreed to it is legal. However, you do want to take your time to read all of the details of any proposed offer on the table. You aren't obligated to accept any of them. You want to decide who can offer you the best deal if you are going to sell it.

How much do I have to pay to sell my structured settlement?

You should never have to come up with any money up front to sell your structured settlement. If you agree to sell it then any fees for processing, legal entities, and more have to be fully disclosed. They will also be deducted from the settlement amount you get.

Do I have to pay taxes on structured settlement payments?

Taxes are a part of life and they apply to all income that a household receives. You will have to pay taxes on the amount of the settlement that you receive in a given tax year. It is a good idea to find out how that will affect your tax situation. Since no taxes are taken out you may owe money to the IRS when you file. You may want to have a savings account to put a portion of your settlement in each month for such purposes.

Things to Consider Before Selling Your Structured Settlement

At some point or another, you may find yourself in a situation where you are in urgent need of sizeable, lump sum amount of money. Perhaps you need money for a medical emergency, make a down payment on a house, or start a business. If you are unable to raise the required sum through other means it may be tempting to sell off your structured settlement payments to one of the plethora of structured settlement companies out there. Before you do so, however, there are a number of things you'll want to bear in mind.

Firstly, many states actually have restrictions regarding the sale of structured settlements. Therefore, you may not be able to sell them even if you want to or need court approval first. Moreover, the terms of your settlement may not allow such a sale either. Even if it is possible to your sell your structured settlement, you need to realize that it is quite likely that you'll lose money in the long run. Structured settlement companies are out there to make a profit and so the offers they make to you may be quite low. Yet another drawback is taxes. While you are receiving payments from a structured settlement plan, they may be tax free. However, as soon as you sell them, the amount that you sell them for may well be taxed.

If you are currently eligible for a structured settlement but have not yet entered into a formal agreement, we strongly recommend that you look into prearranging its terms in a way that anticipates your future needs. It may be possible to set it up in a way by which you receive an initial lump sum followed by periodic monthly or yearly payments or receive lump sum amounts at some future point in time. A competent lawyer can help with this. Sadly, if you are already in a binding agreement and did not do this, you won't be able to change its terms and now request a lump sum from the paying party. If you find yourself in such a situation and you must sell your payments, be sure to contact an attorney and have him review the terms of any agreement that's on the table and ensure your rights and interests are protected. Your attorney will also be able to tell whether the amount you will receive is fair. We also recommend that you shop around until you find a company willing to pay you a competitive price. Make sure they are well reputed and well-funded so that you in fact receive the payment you are due. Contacting a tax professional is also a good idea to figure out if there are ways you can reduce the amount you will need to pay.

There are many drawbacks to selling structured settlements but if you find yourself in a situation where you must do so, we hope you find the advice in this article to be useful. Thanks for reading and take care!

To learn more about structured settlements including how they work, their pros and cons, and more useful tips on things you need to be aware of when buying and selling them, log on to our structured settlement guide. See you there!

Lump Sum Benefits With Structured Settlements

If you are due to start receiving structured settlement payments over a long period of time, chances are you would rather be paid out all at once. In a lot of cases, a person who receives a settlement offer in a claims case or personal injury suit is banking on the money awarded in court to offset their medical, legal, and sometimes mental health bills. A structured settlement disbursement simply is not an option for most recipients that are under the gun to cover such expensive costs immediately after they've gone through an expensive legal battle for their winnings.

In these cases, there are great options to sell structured settlement awards to financial institutions and insurance companies that deal with lump sum payouts for settlements. When selling your structured settlement, the first thing to realize is that you will only receive most of your settlement offer in a lump sum payout. The buyer will charge the settlement recipient a fee for exchanging their money with your disbursement (which may last months or years), meaning they will need to offset the cost of this delayed investment by holding onto some of the funds you've been awarded.

Long Term Security, With No Surprises.

To recipient, who may buy the it is the long term income source that may not bring any kind of surprises to you. Payments may come every month during running time of a plan. An only risk is, that company that needs to do payments may become bankrupt. Profit depends on time, while you may buy the structured settlement. As settlements are the investment instruments like other, general economic situation may affect greatly on prices. In case, you can buy that as bargain, then it is one good deal.

How Payments Are Calculated?

As said, are totally based on court decision and in case, reason is compensating a few damage that someone has caused to another, target is paying for future injury care. Payer is generally the insurance company. In these cases, there are great options to sell awards to financial institutions and insurance companies that deal with lump sum payouts for settlements. In these cases, there are great options to sell awards to financial institutions and insurance companies that deal with lump sum payouts for settlements. When selling your structured settlement, the first thing to realize is that you will only receive most of your settlement offer in a lump sum payout. The buyer will charge the settlement recipient a fee for exchanging their money with your disbursement (which may last months or years), meaning they will need to offset the cost of this delayed investment by holding onto some of the funds you've been awarded.

Settlements Are Tax Free.

If buying price is important element, then another one is a fact, that settlements are completely tax free. In case, that settlements form an only income for a few person, this person is the tax free person.

Why Some Companies Purchase Structured Settlements

You might have heard about these companies that purchase structured settlements if you have ever won a structured settlement. Basically the company would be paying you for your future payments so that you can have the money now. Of course they are going to charge you a fee for getting your money to you now.

The best part about these companies is that they offer you the ability to get a lump sum which could be potentially helpful in getting out of debt. This would mean that instead of getting your money on a monthly or even annual basis then you would have all of the money now. Think about the benefits of getting your structured settlement payments early.

There are many reasons why you might have been awarded structured settlement payments. Some of these include that you might have won a lawsuit that was for a personal injury case, a product defect, medical malpractice, or even wrongful death of a loved one. If the reason behind your lawsuit left you with lots of bills and debt then it might be absolutely necessary that you find someone to buy your structured settlements.

The reason that you would potentially be getting structured settlement payments over time is that they would be awarding you such a large amount of money that it would be hard for them to pay out over time. There are times when these payments last for lifetime and others when they just last for a period of months or years. This is mainly based on the amount of money and the company that is awarding it.

As someone who has just settled a lawsuit you will be guaranteed some income during this period of time. There are some advantages to you if you have a structured settlement however there are also many disadvantages when you need the money now to pay off bills or to purchase a home. The main advantage has to do with taxes.

Keep in mind that when you find someone to buy your structured settlement, that you will have to pay taxes on what you are paid. You are also waiving all of your rights to future compensation payments which means that you will not have any money coming in for the future expenses that you might have. Remember to think about whether or not you are going to continue to have medical or ongoing expenses that are not covered by insurance.

It is always important to make sure that you can pay for these things. The companies that purchase structure settlements do so as a way of making money. Basically they get all of the additional income over a period of time. This means that they will be making a profit off of your settlement payments.

Typically the company that is going to purchase structured settlements is going to be taking a fee of ten to thirty percent. So keep in mind that if a company is asking for more than this that they might not be the best choice. Plus if you have time to shop around for a buyer then you could potentially end up with a smaller percentage based fee.

Benefits And Safeguards Provided By The Structured Settlement Protection Act

The Structured Settlement Protection Act states that certain transactions regarding the sale of a structured settlement need the approval of a judge in your state's court before they can be completed. It is also stipulated that the responsible insurance company making the payments need to be part of the process prior to the sale.
Prior to the inception of the protection act it was not necessary that insurance companies be informed of change of ownership of a structured settlement, and quite often did not know of the change until after the fact.
So, whether you are comfortable with the payment setup of your settlement or are considering selling your annuity, it would be in your best interests to learn more about the protection act.
Requirements of the Protection Act
The act now requires that any interested parties be notified of a sale or partial sale of a structured settlement twenty days prior to any court hearing seeking approval for any changes.
Prior review by a judge is required before any sale takes place. This is done to insure that the sale is in the best interest of the person or client receiving the annuity.
This requirement exists for the protection of the client. Before the implementation of the act there were companies that unscrupulously took advantage of many people who wanted to sell their settlements by offering paltry and unfair amounts to purchase their annuities and settlements.
Many clients, either because of the lure of a large lump sum of money or lack of knowledge on the subject, fell prey to these tactics.
Benefits and Safeguards of the Protection Act
The client selling the settlement must disclose the arrangements associated with the sale along with their personal financial affidavit describing their current financial status. This usually must be submitted three days prior to any finalization of the sale or contract signing.
It is now the responsibility of the buyer of the settlement or annuity to disclose all information relative to the purchase and sale of the annuity or settlement, not the insurance company, issuer or client.
A company that is proposing or trying to buy your settlement must also advise you to seek legal advice before proceeding with sale. This also must be given in writing, and must be done before any information can be presented in court,
Once all documents have been signed, the seller or client still has three days to change their mind about the decision to sell.

The Structured Settlement Protection Act assures that people can sell their annuities and structured settlement payments in a fair and just manner without the fear of being victimized by dishonest companies. Visit the Structured Settlement website for more information about your structured settlement and structured settlement companies.

Things to Know About Structured Insurance Settlement Payments

There are many things that you should be aware of when it comes to structured insurance settlement payments. One of these is that if you want to buy or sell these types of settlements this must be done through a court. The basic reason for having to go to court to purchase or sell these is so that the seller will not be ripped off as this was a problem in the past. There are not a whole lot of reasons why someone will be getting one of these settlements and usually there has either been a death or a serious permanent injury.

There are many ways that a structured insurance settlement will benefit everyone involved. First off the company or person who is being sued will get to pay the injured party over time rather than having to come up with a significant amount of money at one time. In addition it is great for those who have been injured or are suing on behalf of an injured party as they will have permanent income for a period of time without having to worry about how they will earn money. This is a great way for them to be able to have money to cover the necessary medical and living expenses of day to day life.

If you have bills that need to be paid now and you do not know how you are going to pay them and you have been awarded a structured insurance settlement then you might find that you would rather have a lump sum. The best way to get this is to be able to sell your settlement to an individual or company that is willing to give you cash now for your settlement later. The thing is that in most cases you will be giving up all of your settlement to get the cash now.

In the past you did not have to make these transactions through a court. However too many people ended up getting ripped off so in 1982 there was an act passed by Congress called the Periodic Payment Settlement Act. This included a special clause that made such settlements tax free as well. However if you get the money as a lump sum then you must still pay taxes on it so this is another way that you will lose part of your settlement when you choose to sell it for immediate cash.

The idea behind all of the laws and regulations was to basically keep people from selling their structured settlements for too little when they were desperate for cash. So if you want to buy or sell a settlement now then there has to be a court review it. This is not necessarily a bad thing and it is nothing that takes too much time or effort and in the end it helps to protect all parties involved.

Just remember that once you sell your structured settlement that there is no way that you can get it back. If it is your only source of income then you could potentially be without an income so think long and hard about what the best choice for you really is. This is one thing that is going to help you to make sure that you make the best decisions.

How To Sell Structured Settlement Quotes?

You can obtain structured settlement quotes from a variety of financial institutions including banks, insurance companies, investment firms, and entities and third-party buyers. Selling a structured settlement is considered relatively difficult than bonds and other financial instruments. It is, however, not as complicated as it may sound. You can sell your structured settlements by following a set procedure.

The first thing to do before applying for structured settlement quotes is to assess the total net worth of your payment plan. You can do this easily by simply looking at the net value of the plan and its duration in months, years, or decades. Lifetime settlement plans fetch greater value than those that are valid for only a couple of years.
You can start looking for quotes once you have done this assessment. Banks and insurance companies offer the best structured settlement quotes though some third-parties might also come up with good plans.
It is always recommended to hire an accountant to help you out in the selling process. There are many clauses and procedures that could cost you significant amount of money if you have not done your homework properly
A seller should always aim for the best structured settlement quotes. A bank or insurance company will usually start with lower quotes as they try to negotiate highly profitable deals for themselves. It is therefore necessary to take one step at a time and look at all the clauses of the quotes. Some quotes appear lucrative but have many hidden rates, charges and tax implications embedded into them. It becomes necessary to pare them down and look at every clause of the agreement.

A better arrangement is to negotiate the prices of structured settlement quotes that are mutually beneficial. Banks and insurance companies will never agree to a deal where they receive minimum profits and you can't sell your settlement plans for petty amounts. You both need to strike middle ground and this can be done by entering into fierce negotiations. There is a strong possibility that they will try to impose charges and rates higher than usual on your annuity. You can avoid this trap by agreeing on a relatively lower payment but without any additional charges.

When you will do the math, you will often find that you are receiving a higher lump sum amount than with those additional charges. It is always good to have more than one offer at the ready so as to quickly jump to a better option if negotiations with one company fail. You can make a list of companies offering the best deals as this could take you far for receiving the best quotes. This will also come in handy during the negotiations if one company is reluctant to offer better rates.

You will be able to find the best structured settlement quotes only after doing significant research. This may take a little more time but you will be able to sell your plans at the highest rates and with the largest lump sum amount.

What Is A Lottery Structured Settlement?

If you are lucky enough to win one of those huge lottery amounts, you will quickly find that you don't get the entire amount at once. That information is all disclosed in the lottery game play rules but few of us take the time to read such details. What you will receive should you win is a lottery structured settlement. This allows you to get a portion of the winnings at a time.

The settlement may consist of month payments, every few months, or a payment once a year. The payments may continue for many years but it all comes down to how much money you win. Let's say that you win $1 million in your local lottery. They may send you a check every month for the next 25 years to pay you what you have won.

Many times though groups of people go in and buy lottery tickets for those large jackpot amounts. Then the amount that each person gets each time is smaller than if it is only one person that won it. The thought of any extra money for most of us though is one we gladly entertain.

Still, it can be frustrating with a lottery structured settlement because you may still feel limited. Instead of being able to take that money and do all you want with it you feel that your hands are tied. To get the financial freedom they want though many people look into selling their lottery structured settlement.

Then they are able to get a lump sum payment. This will be a fraction of the amount that would have been paid out over the life of the settlement though. It can be a tough decision to decide to continue with the set up payment schedule or to get the lump sum so that you can buy what you want, invest, and enjoy those funds today.

It can be a good idea to have legal council explain to you what they suggest and why. For some people it is a good idea to sell the annuity but for others there is a huge risk that they will soon find themselves out of money. There are also other options such as only selling a portion of those lottery payments.

The flip side of this equation is someone who may be interested in buying the stream of payments in exchange for paying out a lump sum now.

A person like this might be an investor who isn't satisfied with their returns from other investments and wants the security of a sure thing. This type of person is also more interested in the income stream than having a large sum now that they can't use and which if they spend will quickly diminish in value faster than it is earning interest. For someone like this buying a lottery structured settlement might be just the answer they were hoping to find.

The top information source is found by visiting these links for everything relating to structured settlements including selling structured settlements as well as how you can purchase structured settlement payments is covered in detail. Check it out now and learn how to get the best prices for buying or selling or just get your questions answered.

Partial Sale of a Structured Settlement

You may want to consider a partial sale of a structured settlement rather than the entire thing. There are plenty of benefits to this idea for you to think about. The main reason that people sell their settlement is to get money now. They may have things they wish to buy, debt they need to pay, educational expenses, or a business that they want to be involved with.

Yet when a financial instrument like this is sold a person is going to get less for it than what they would over the course of the payments. This could be up to 30% less than what the overall value of it would be and that can add up to a great deal of money. Plus, not all people are good at handling a lump sum of money. If you get a full lump sum payout and spend it all then what are you going to do in the future for income?

With a partial sale of a structured settlement you may be able to only get a lump some for a part of it. That will give you the funds you need for the pressing issues at a hand. At the same time it will give you money coming on regularly to help you with the ongoing financial need you are going to have.

For example let's say that you have a 20 year structured settlement annuity in place where you get $2,500 a month over that span of time. With a partial sale of a structured settlement you can get a lump sum payment and then you will only get $1,250 a month for the next 10 years. This may be a way for you to get the best of both methods so that you aren't worried about financial concerns.

Another reason to get part of the money up front is inflation. Chances are your money will buy more now as a lump sum than if you get it in 5 or 10 years down the road. You can make some investments now too so that you have more money in the future that you can use for anything you need.

The number one information resource for everything about structured settlements including how to sell a structured settlement and how you can purchase structured settlement payments is covered in detail. Check it out now and learn how to get the best prices for buying or selling or just get your questions answered.

How A Lawsuit Structured Settlement Works

There are many types of lawsuits today that can result in a structured settlement occurring. Let's say that you win a lawsuit against a manufacturer that offered a type of medication that caused heart problems for you. The fact that your health is no deteriorating, you aren't able to work, and you have to pay for ongoing medical treatment and medication has taken a toll on you.

First, your body isn't what it once was so the fact that you aren't able to work means that you should be compensated for lost wages. Your currently level of income will be taken into consideration as will your age. That is used to help determine approximately how much you would have earned annually and how many more years you would have reasonably been in the workforce.

The emotional toll of such circumstances on a person are also something that they are to be compensated for. Many people find it hard to sleep, their personal relationships suffer, they aren't able to enjoy social activities, and they just feel that they have had so much taken from them. It may require counseling too in order to help someone cope with their new situation in life.

When a person gets funds for a lawsuit structured settlement the law much agree that there was some type of negligence on the side of the party that is going to pay. Most of these types of cases are settled out of court. However, it can still take time to get the right paperwork filed and to get the dollar amount for the settlement agreed upon.

There is always the option of selling the lawsuit structured settlement too for a percentage of what it is worth. You shouldn't take less than 70% of the value of it as that is the current rate. If you can get more than that do so, but keep in mind they may have higher processing fees that masks how much they will keep so do the math can compare overall costs. The money you get can at least help you to have some solace and to have funds for your financial needs.

Top Three Things To Look For In A Structured Settlement Annuity

If you are about to sign a structured settlement annuity agreement then it is highly important that you first look for certain clauses and payment plans. This is necessary to rule out the possibility of suffering financial damages if the policy does not have ample safety clauses. This will also remove any chances of incurring losses if you want to sell the policy.

1. Value

A structured settlement annuity has a set value that is defined at the time of settling a personal injury lawsuit. This value is sometimes set by the judge deciding the case though in most cases it is the plaintiffs who do that after negotiating with the defendants. If a case has been settled out of court then it is always the mutual agreement that sets the value of an annuity. There are two types of annuities available in this case with the first one offering payments for a couple of years and the second one offering life-time payments. If you are in the process of negotiating a deal then it is important to set a value that corresponds to your life-long expenses on medical treatment. If the annuity is spread over a couple of years then you can ask for greater annuity payments to benefit from financial stability. On average, six figure payments are considered normal in case of serious and debilitating injuries.

2. Nature of payments

A structured settlement annuity comes with varying payment plans. Some annuities are payable every quarter while others will remain dry until a year has passed since the agreement was signed. You can negotiate a deal where an annuity payment arrives in your bank account at least once every quarter. This is necessary to fund medical treatments and other expenses incurred by the prolonged effects of your injuries. Some annuity payments also offer monthly payments though it comes with higher discount rates and other charges. Quarterly payments thus remain the most popular and manageable way of receiving injury compensation. If you have signed a life-long deal then yearly payments are generally preferred by the insurance company. This is also a lucrative deal as the payments will come as long as you are alive.

3. After sale value

It is common for a structured settlement annuity to be sold by the claimant. There are many reasons cited for this trend with financial need being the most common factor. Every annuity settlement plan comes with certain clauses that dictate these sales. Most jurisdictions do not have an income tax deduction on annuity payments but discount rates and other charges need to be taken care of. It is always recommended to select an annuity plan that comes with minimal deduction and additional charges. This will enable you to sell your plan at a higher rate and receiving as high as 95% of the total value of the agreement.

If you have taken care of these aspects then you will be able to sign a structured settlement annuity deal that offers you maximum benefits while paying little in discount rates, processing fees, and other charges.

The Steps to Sell Your Structured Insurance Settlement for a Lump Sum

If you have recently been awarded a structured insurance settlement and you find that you are unable to make ends meet now then you might be the right person to sell your settlement for cash now. How this works is that a special structured settlement company will buy your settlement now for cash so that you can afford to pay all of your bills. Obviously this is going to cost you and you are not going to get as much money as you would have if you were to wait but sometimes this is still a better choice for you depending on your unique situation.

The main reason that people choose to sell their structured insurance settlement is that they have an immediate need for the money. Usually they are in a situation where they feel that they can not wait longer in order to be able to use the payments as they come in. Instead they are able to get a cash payout immediately from a lump sum.

The main problem with people who have one of these settlements is usually that they have a huge amount of bills like medical expenses that need to be paid. Sometimes people accept these payments for other reasons like family vacations but this might not be the best choice for you. Of course this is your choice to make but remember if you give up your structured settlement that you will not have that as income in the future.

There are also some great investment opportunities that you might want to take advantage of when you need the additional cash. One of the best reasons to sell your structured insurance settlement is to be able to pay all of your current bills without worry. However do keep in mind that this can be a bad thing if you are injured to the point that work is going to be hard for you in the future.

So when you want to sell your structured settlement there are some steps that you have to take. The first thing that you should do is research. Find a company that is known for being fair and giving the best price. You do not want to feel as though you have been ripped off afterward because you got less than you should have with the lump sum.

Another step is to contact an attorney who can give you advice and make sure that you are not being ripped off. Plus the attorney can help you to find a buyer that is willing to pay the most so that you can make the most of your lump sum. Whatever you choose just making sure that there are no hidden fees or things in the contract that you are not aware of is a good idea. You can find out this information easily online and if not there by placing a few phone calls to various companies.

Structured Settlement Companies

There are many things that you should consider if you are looking to find structured settlement companies to work with you about buying your structured settlement. There are a wide variety of different choices that you will have and some of them include selling all of your future payments for a lump sum. The best part about choosing a company to do this with is knowing the security that you are not going to be ripped off especially if it is known as one of the best companies to work with for this type of issue.

The biggest problem that people who have structured settlement payments coming to them face is the ability to pay the bills that they have now. In a lot of cases these individuals actually have a problem with finding the best choices for being able to sell their structured settlements to. So to be able to figure out what is needed and how to be able to have the best luck with structured settlement companies there are some tips that you should consider.

The first tip that anyone should tell you is to take your time when looking for someone to give you a lump sum amount on a structured settlement. The reason that you should take your time is to maximize the amount of money that you are going to get. You want to make sure that you are finding the right structured settlement company and not a company that is going to rip you off. In addition you want a company that is going to be easy to work with and give you the fewest headaches possible over such issues. If you try and make your decisions too quickly you could end being disappointed in the future or even feeling as though you have been taken advantage of.

The next tip is to try and make your decision without your emotions. If you are emotional people and companies will see this as a weakness and they will try to take advantage of you. There are even companies that use a specific strategy where they try to be friends with you in order to get you to sell to them at a much lower lump sum total then you would have gotten with other companies. Be aware of such tactics and make sure that you are not fooled. You do not want to choose a company because the people were nice to you, only to find out that you would have gotten a lot more money from different structured settlement companies.

Finally you should be looking for a company that is willing to answer any and all questions that you might ask. If a company is not willing to answer a question or if you feel like the real answers are being avoided then you might want to check into things and see how legitimate the company really is. The company should be willing to answer and all questions and to treat you well in the process no matter how many questions you might have. Keep this in mind and you be sure to find one of the best structured settlement companies around.

Understand the Basics of Structured Settlement Loans

One of the first things that you should understand about structured settlement loans is that they are loans on settlements which are generally awarded lawsuits or lottery winnings. Basically these are the awarded settlement that people get in an event of wrong doing. As for lottery winnings, this is an additional choice that winners have which provides them with more money over a longer period of time then the lump sum option.

Sadly there are those who are getting this money that find themselves to be in a place financially where they can not make ends meet. The problem generally does not come with month to month bills but rather with things that are completely unexpected like medical emergencies or accidents. During unexpected situations like this someone who has a settlement might consider structured settlement loans.

How these loans work is that you are taking money now for the money that is coming in on your structured settlement later. This is the money that is actually used to pay back the loan. Basically it allows the borrower to get the money that they need now without having to worry about the terms of repayment since the repayment will be automatic with the structured settlement. There are some things that you should remember if you are looking for one of these special loans.

One of the first things to consider is that these loans are not available everywhere. There are only certain types of financial companies that are allowed to give out structured settlement loans. These can include banks but there are not a lot of banks that actually give out money for these types of loans either.

In addition you must consider both the positive and negative aspects of borrowing money on your structured settlement payments. One of these is that a structured settlement is a form of tax free income and when you get a loan it is taxable. So you are going to lose the fees that you have to pay the lender for borrowing the money and also the money that you have to pay out in taxes which means that you will lose a considerable amount of money.

As for the long term there are times when you might not foresee a need that your future could hold. So if you borrow money on something that is to be paid back in the future and you have no other income at that time then there is a wide variety of other things that you might have to consider. Keep in mind that you could potentially just borrow on a portion of your structured settlement which could solve both problems,
helping you meet an immediate need but leaving you with an income for later too.

Just keep in mind with either one that you must make sure that you read all fine print. You have to understand all of the terms and make sure that there are no hidden fees that you were not previously aware of.

How To Sell Structured Insurance Settlement

It is possible to sell structured insurance settlement plans at lucrative rates if you have done your homework well. You can start with an evaluation of your insurance settlement followed by asking for quotes and scanning the market for your policy. It may take a couple of months but it will be worth waiting for the best deal.

You can sell your structured insurance settlement by first evaluating its total worth. The easiest way of doing that is to look at the agreement and monetary details that you agreed to while signing the deal. Duration also plays a key role as life-long agreements are worth higher than those valid for only a year or two.
After evaluating the total worth, it will be time to look at the discount rates, additional charges, and deduction of taxes, among other things.
An insurance settlement comes with strict rules and regulations on its use, maintenance, and sales, among other things. You need to follow these guidelines if you are contemplating a sale.
You will be able to decide about the sale after reading these rules and regulations and evaluating its net worth. The next step will be of finding a buyer. This is the most important step if you want to sell structured insurance settlement. It is highly unlikely that you will be able to sell it to an individual buyer. There are many restrictions attached to such agreements that bar their sale to a single person. It will be another insurance or investment company that will be eager to buy your settlement plan.

This will require a step-by-step approach. You will need to scour for the best deals after evaluating the net worth of your settlement plan. It is recommended to start with insurance companies as they are the entities that offer these plans and are also interested in buying them. Insurance companies, however, have such a vast experience in this field that they are never ready to offer the best deals. Sometimes they are the only ones offering such deals so you will have to pick the best among them. It is another reality that you will face when you plan to sell structured insurance settlement.

You can still manage to get a lucrative deal by negotiating on interest rates, additional charges and taxes, among other monetary matters. It is better to hire an accountant to discuss these matters with the company. He or she will have the best knowledge to advise you on accepting the deal or asking for better terms. Many jurisdictions waive collection of taxes on annuity payment plans but some have introduced the deduction of income tax. You will need to pay the tax in that case but you can ensure lower deductions while finalizing the deal. On average, a good deal can offer up to 95% of the total worth of a structured settlement plan. You can sell structured insurance settlement at his lucrative rate by taking one step at a time and paying attention to every detail.

Structured Settlement Loan: How To Get One

It is possible to receive a structured settlement loan in almost all regions of the United States. People enter into structured settlements to receive compensation from individuals or companies after sustaining personal injuries. The compensation is paid over a set period of time and in small installments. These installments, which are mostly given as part of a life insurance agreement, can be used as collateral for loans. There is a simple procedure of applying for loans while relying on annuity payments.
Prerequisites
If you are interested in applying for a structured settlement loan then it is necessary that you first dissect the type of settlement you have. It is a common mistake to apply for loans when your settlement agreement clearly advises against that. Some agreements come with strict clauses regarding loan disbursal and other financial leverages taken out while using the document as collateral. If no such regulations are present then you will be eligible for the loan. Court permission will still be required if the settlement was reached under its decision. You will also need the permission of the insurer and the defendants if you reached an out of court settlement for your injury lawsuit.
You can start the loan application process once you have ensured that there are no snags or legal restrictions.
Application
A bank or financial institution will accept your application for structured settlement loan after thoroughly scrutinizing and evaluating the documents. Processing can take up to 90 days and up to 120 days in some exceptional cases. Selling your annuity on the other hand will not take much time as you will be able to receive the money within 45 days. Fees are to be paid once the application is processed and loan is granted. This fee is coupled with other charges and some jurisdictions also deduct income tax from the lump sum loan amount. You can use the rest of the loan as per your discretion while paying it back with your annuity payments.
Comparison with settlement sales
It is a good idea to compare the sale of settlement agreements with the disbursal of a structured settlement loan. If you are to sell an annuity then you will pay more fees with possible deduction of taxes. This will effectively cease the settlement agreement with no chances of you receiving payments in the future. If you are taking a loan on a structured settlement then your original plan will remain intact but you will have to pay back the loan with these payments.
Annuity buyers often purchase only 50% of settlements but loans are pervasive on almost 100% of the payment plan. This offers a greater leverage to people taking out loans as they will be able to spend it on a number of options, including the purchase of property. It is often necessary to hire a third-party or an accountant to sort out the details of a structured settlement loan. This also removes any chances of troubled clauses being added to the agreement and prevents other complications.

Why You Should Insist On Structured Settlements?

What are structured settlements? This question may have entered your mind if you are suffering from an injury caused by the negligence of another person, group, or company. Personal injury litigation remains the common route of those seeking compensation from those responsible for your injuries. In recent years, however, these settlements have emerged as a second option in personal injury claims. Structured settlements can be defined a predetermined amount of money that is given to claimants over a set period of time. A decision about the duration and nature of payment is taken by both the parties usually in presence of lawyers.
Some find it better to use this payment plan for personal injury claims. They prefer it over a lump sum payment for a variety of reasons.

• A lump sum payment remains elusive if plaintiffs want to earn compensation through court. An estimate puts the number of cases won by plaintiffs to be as low as 10%.
• Defendants often come up with excuses and are able to tilt the decision in their favor. A court of law relies entirely on evidence and this results in a negative outcome. It is therefore better to have something rather than nothing.
• Sometimes the court itself agrees on granting judgments with structured settlement as the mode of payment. This is done after hearing the views of both parties and offering them time to discuss the matter with each other.
• Out of court settlements remain the most common route of agreeing on this type of payment plan. This reduces the financial burden of litigation and offers quick processing of claims if both parties have agreed to the settlement.

This type of settlement is done with the help of an outside broker. Once all parties have agreed to the arrangement, an outside broker comes into the picture and negotiates with both parties' lawyers. This may take a week or even a month, depending on the objections posed by the defendants or the plaintiffs, among other issues. Once a deal is signed, the defendants are legally bound to offer you the monthly, quarterly, or yearly payments. The duration of payments is also decided at this time.
Structured settlements are usually done through a life insurance company in the form of annuities. Given the workings of the insurance industry, premiums and discount rates play an important role in deciding about a settlement plan. Sometimes the plaintiffs have to wait for months before they receive a payment. You can avoid this delay by presenting a strong case to the insurance company and pursuing it with gusto. A competent lawyer can help you in completing the necessary procedures in the shortest time possible. He or she will also keep an eye on inflated values, high commission, and other tricks used by the insurance company and defendants.
It always helps to purchase structured settlements from more than one insurance company to ensure financial stability over the years. It will also protect your payments from company bankruptcies and other problems.

Know The Basics On How To Buy Structured Settlements

If you want to buy structured settlements then it is necessary that you know the basics of this arrangement. A structured settlement is an agreement between the people who sustained personal injuries and the defendants regarding the payment of compensation. Under this arrangement, people responsible for the injury usually agree to settle the matter out of court. Litigation is withdrawn by the plaintiffs and the lawyers of both parties sit down to set out details of the deal. Under this deal, the plaintiffs receive legal guarantees from the defendants to receive predetermined monetary payments over a year, decade, or lifetime.
This makes it easier for both the parties as defendants are able to avoid financial problems by preventing lump sum payments. Plaintiffs also receive legal assurance that they will be paid money in regular installments over a set period of time. The growing popularity of this arrangement has prompted many to buy structured settlements. People need to buy structured settlements because of a variety of reasons. Most do it out of financial necessity as they are unable to pay for medical expenses and other related expenses with their own money. Buying the plan helps them to receive a set payment at regular intervals thus offering them the opportunity to pay for medical bills or other expenses.
People who buy structured settlements can greatly benefit if they have followed the right procedure. Buying a payment plan enables them to receive money from the insurance companies who have underwritten the plans. They also have the option of either keeping the settlement or selling it if they find compatible rates. It is, however, the buying process itself that is considered rather tricky. This makes the buying a more exclusive trade where those who have sustained injury become the best users. If they are able to receive settlement as a result of a court judgment then they will have the option to dictate their own terms.
Under these terms, they can ask for lower discount rates, greater annuities, and other benefits. People sustaining personal injuries can also purchase these settlements without a court decision. It happens as a result of out of court settlement or a direct interaction between the plaintiffs and defendants. Under this arrangement, all parties agree to certain terms and the total amount to be paid over a certain period. Payments can be quarterly, six-monthly, or annual, depending on the terms of the deal. Some of these payments are tax-free thus offering greater financial stability to buyers. Others are tax deductible but come with significant tax rebates to offset any losses.
Discount rates on structured settlements were significantly higher before 2002 when Congress approved a new legislation that reduced it significantly. Insurance companies are required under financial rules and regulations to consider these settlements and this has helped thousands of people coping with personal injuries. People suffering from debilitating injuries can buy structured settlements to overcome the financial and emotional stress and ensure monetary stability over the months and years.

Get Instant Cash From Structured Settlement Companies

If you have been in an accident and suffered some type of personal injury as a result then there are some things that you should know about the payments. Typically a judge is going to allow for what is called a structured settlement which means that you get payments for a certain period of time. In this event and if you have racked up a ton of bills while being in court over the issues you might find that one of the good structured settlement companies is your best choice for getting the money that you need now.
The main reason that you might need money now is for the bills that you have not been able to pay while you have been injured. In addition there are probably a lot of other expenses that you have accrued while being ill including expensive and costly medical bills that you might not have any way of paying. Structured settlement companies can really help you in this situation by getting instant cash to you for help with dealing with these bills.
If you are in this situation then finding the instant cash is easy. The first step is just to make sure that you are ready with all of the documentation about your s structured settlement. You can actually get the company to give you a lump sum for all of your payments or possibly just a lump sum for a few of your payments depending on your current bills and needs. Keep in mind that if you take a full lump sum that you will no longer have the rights to your structured settlement.
It is always a good idea to talk to more than just one of the structured settlement companies as a way of protection and making sure that you get the most money if you are going for a total lump sum. There are a variety of different fees and interest rates that could potentially be charged and you want to make sure that you get the most money out of your settlement. Taking your time, while difficult when you need money now, is really important in this case.
There are some additional facts that you will need to be familiar with. One of these is the type of settlement that you have. There are actually some settlements that are not valid outside of the state in which you reside so these are going to be harder to find a structured settlement company to work with. However there are a wide variety of different legal aspects that are also important.
Make sure that you are familiar with the laws where you live. There are some states that have additional protections built in to help protect those trying to sell their structured settlements. So make sure that you know the laws and understand your rights as well as the rights of the potential buyer. There are also a variety of different types of options that you should consider always looking for the one that is going to give you the most peace and security for a period of time.