Structured Settlement Advantages
a unique and benefit laden financial scheme
A structured settlement is a unique financial arrangement in many regards. Arguably, this is among the few financial instruments and schemes that blatantly put the needs and requirements of the intended beneficiary at the forefront. The advantages that a structured settlement can pass on to the bearer are huge, both from a financial and a security standpoint. My Structured Settlements Money helps you identify these advantages in a clear manner. Here’s a quick run through the most prominent benefits that structured settlements bring to the table for you.
There’s no financial arrangement as secure in terms of future financial security as a structured settlement. Periodic income ensures that there's no scope for frivolous overspending. The regulations in place by federal and state governments ensure that even if the insurer sponsoring the settlement annuities goes bankrupt, its liabilities towards structured settlement owners are met first upon its liquidation. Settlements can pass on to a nominee in case of intended beneficiary’s premature death. It’s not uncommon for settlement horizons to be as long as the remaining lifetime of the claimant, which ensures lifelong financial comfort. Structured settlements can be tailor made to suit your needs, which also includes having the flexibility of selling them off built into the structure. My Structured Settlements Money can also assist you in selling your annuities.
Periodic payments to guard against frivolous spending
Considering cases of compensation claims, it is commonly observed how beneficiaries struggle to be sensible about their expenses when they get a huge compensation amount. The whole purpose of the claim settlement gets defeated if the plaintiff ends up spending the entire amount in a couple of years, and hitting the government sponsored medical facilities thereafter. Structured settlements, thankfully, ensure that the claimant will only have access to small installments of the compensation amount which will be spread out, in some cases, over the entire lifetime of the intended beneficiary! This helps the claimant adjust to the income stream, and lets him/her plan expenses in accordance with the timelines according to which the funds will be made available to him/her.
You might also want to know that all annuity payments that are paid to you as a result of damage related claim are exempt from taxes. Section S 104(a)(1) and 104(a)(2) of the Internal Revenue Code clearly provides for the same. For instance, structured settlement amounts for personal physical injury claims and workers' compensations are completely tax free. At My Structured Settlement Money, we provide you the answers to all your queries related to tax implications of entering a structured settlement agreement, and also when you sell it off.
Have the court approve the sale
Once you sign and submit the transfer documents, a local attorney that we hire for you submits them to the court. Depending upon the pending cases with the court, you get a hearing date within 30 to 60 days of the submission date. Court approval is not a daunting process, and you are only asked about the reasons of selling the settlement, and whether any stakeholder has any opposition to the sale. You can expect the judge to accord his approval for the sale in the hearing.
Flexibility and fine tuning of the structure for the claimant
The basic essence that pervades structured settlements is of ensuring the financial stability of the claimant’s life. In this direction, structured settlements can be fine tuned to provide for times needs of the claimant, such as children’s college education, etc. Also, the payments under the structured settlement can be deferred if needed, and can also be varied in amount if the need be. What’s more, one can also sell off one’s structured settlement if the need be in the future. Also, it can be so arranged that of the claimant dies prematurely, then the remaining structured settlement amounts can be passed on to a nominee. Truly, a structured settlement can actually be tailor sewn to meet the claimant's requirements. Please feel free to contact us at My Structured Settlements Money to know more about structured settlements and selling them off.
More advantages associated with structured settlements
It has been seen that plaintiffs agreeing to a structured settlement scheme often get more than what they would have got in a lump sum payment from the defendant. Moreover, fixed annuities in a structured settlement are supposed to continue to be credited to the beneficiary for his/her entire lifetime, irrespective of how long that may turn out to be. In addition to all this, the fact that you can sell your structure settlements off also endows you with a lot of financial stability. Even in case of a pressing need of cash, such as an inadvertent medical emergency, college education fees for children, requirement of moving to a new house, you will have a ready recourse to salvage the situation. Depend on My Structured Settlements Money to be your advisor, consultant and facilitator in all your structured settlement selling needs.