So you have decided to sell structured settlement payments and are about to call a company for a quote. You are a little hesitant because you fear that the person on the other end may attempt to intimidate you with his or her financial expertise or perhaps pummel you relentlessly with sales pitches.
Your hesitation, while unfounded, is understandable. You are naturally skeptical because you do not want to be suckered into a raw deal. But if you deal with respectable companies such as Woodbridge Investments and JG Wentworth, you can be sure that you will be treated with professionalism and courtesy. Here’s what a well trained and highly professional account representative can do for you:
• Create options. An account representative can break down your payments in many different ways until you find a setup that can provide you the cash lump sum you desire.
• Gather documents. Selling structured settlement payments requires a lot of documents so the transaction can be processed. A highly dependable account representative not only gathers these documents for you but also keeps them organized to further facilitate the sale.
• Remove liabilities. Liabilities such as outstanding tax liens and child support payments can negatively affect the sale of your structured settlement payments. Fortunately, a good account representative can work with authorities to have such liabilities removed.
• Work with creditors. If you are facing the foreclosure of your home or the repossession of your car, an account representative understands that you want to get your lump sum sooner than later. A company with years of experience buying payments actually trains its representatives how to work with creditors and would-be creditors so you don’t have to worry that your money may not arrive on time.
On top of all that, the most important thing an account representative can do is lend an ear. While nothing beats getting the cash lump sum you need, there are times that just being able to talk about your financial woes with someone who care and can actually do something to help you.
Basically, a structured settlement is a way to settle a civil lawsuit by having the defendant pay out compensation over time instead of in a single lump sum. The term can also be used to refer to one structured settlement lump sum payment paid out at a future date.
The principal and interest of structured settlement money is exempt from federal tax. Such settlements are usually employed in personal injury claims.
Structured settlement money can be used to pay for medical expenses, attorney’s fees and other expenses arising from a personal injury. If the injured person is a minor, funds are normally deposited into a blocked bank for these expenses until the child turns 18. The remaining money is then used to buy an annuity which will later pay out funds to the child for things like college tuition, a down payment on a house, or an annual allowance for a specific amount of time.
Research done in the mid-1980s revealed that structured settlement money was often misspent within just several months of receipt so Congress launched new incentives that urge people to receive the money over time instead of as a single lump sum.
The Advantages of a Structured Settlement
By nature, children do not know anything about managing their or anyone else’s finances. What’s more, a lot of parents do not know how to wisely react to a sudden windfall either. That is why it is in the best interest of all involved that the money be paid as a structured settlement.
Since minors cannot enter contracts, they cannot agree to their own settlements. A court must first confirm the settlement to make it binding. Once a settlement is binding the victim in effect agrees to accept the money and give up further legal claims. This rule is applicable when children’s settlements are worth more than several thousand dollars. Courts will only approve settlements once they are certain the child’s money is protected.
While structured settlements are not the only way to protect a child’s money, they are considered by a lot of people to be the best. While courts will also accept an UGMA account, a court-controlled blocked bank account, US Treasury instruments, Certificates of deposit, and restricted trusts, these have major disadvantages. Generally speaking, they pay low rates of interest and are burdensome and/or expensive to manage.
Your hesitation, while unfounded, is understandable. You are naturally skeptical because you do not want to be suckered into a raw deal. But if you deal with respectable companies such as Woodbridge Investments and JG Wentworth, you can be sure that you will be treated with professionalism and courtesy. Here’s what a well trained and highly professional account representative can do for you:
• Create options. An account representative can break down your payments in many different ways until you find a setup that can provide you the cash lump sum you desire.
• Gather documents. Selling structured settlement payments requires a lot of documents so the transaction can be processed. A highly dependable account representative not only gathers these documents for you but also keeps them organized to further facilitate the sale.
• Remove liabilities. Liabilities such as outstanding tax liens and child support payments can negatively affect the sale of your structured settlement payments. Fortunately, a good account representative can work with authorities to have such liabilities removed.
• Work with creditors. If you are facing the foreclosure of your home or the repossession of your car, an account representative understands that you want to get your lump sum sooner than later. A company with years of experience buying payments actually trains its representatives how to work with creditors and would-be creditors so you don’t have to worry that your money may not arrive on time.
On top of all that, the most important thing an account representative can do is lend an ear. While nothing beats getting the cash lump sum you need, there are times that just being able to talk about your financial woes with someone who care and can actually do something to help you.
Basically, a structured settlement is a way to settle a civil lawsuit by having the defendant pay out compensation over time instead of in a single lump sum. The term can also be used to refer to one structured settlement lump sum payment paid out at a future date.
The principal and interest of structured settlement money is exempt from federal tax. Such settlements are usually employed in personal injury claims.
Structured settlement money can be used to pay for medical expenses, attorney’s fees and other expenses arising from a personal injury. If the injured person is a minor, funds are normally deposited into a blocked bank for these expenses until the child turns 18. The remaining money is then used to buy an annuity which will later pay out funds to the child for things like college tuition, a down payment on a house, or an annual allowance for a specific amount of time.
Research done in the mid-1980s revealed that structured settlement money was often misspent within just several months of receipt so Congress launched new incentives that urge people to receive the money over time instead of as a single lump sum.
The Advantages of a Structured Settlement
By nature, children do not know anything about managing their or anyone else’s finances. What’s more, a lot of parents do not know how to wisely react to a sudden windfall either. That is why it is in the best interest of all involved that the money be paid as a structured settlement.
Since minors cannot enter contracts, they cannot agree to their own settlements. A court must first confirm the settlement to make it binding. Once a settlement is binding the victim in effect agrees to accept the money and give up further legal claims. This rule is applicable when children’s settlements are worth more than several thousand dollars. Courts will only approve settlements once they are certain the child’s money is protected.
While structured settlements are not the only way to protect a child’s money, they are considered by a lot of people to be the best. While courts will also accept an UGMA account, a court-controlled blocked bank account, US Treasury instruments, Certificates of deposit, and restricted trusts, these have major disadvantages. Generally speaking, they pay low rates of interest and are burdensome and/or expensive to manage.
