Getting One Payment From An Injury Award With A Structured Settlement Transfer
A structured settlement transfer may give you some much needed cash after a personal injury settlement.
It will also help one to rise above the fairly restrictive laws and regulations as well as policies set up in lots of states, where there's possibly an excessive amount of protection intended for the benefit of the individual.
The situation comes up when somebody is given a court award because of a personal injury suffered for which somebody else is held accountable. In lots of states, it is thought to be that awarding the total amount all at once could be counter-productive.
The reasoning behind this is that the money will be needed on an ongoing basis over time, so that is the best way to deliver it. In many cases, this is perfectly true and the system works quite well. There will always be cases, however, when it will be better for money to made available faster than it is. The more progressive states are happy to allow the recipient of an award to make a bid to the court for more of the money to be released. Where this is possible, it is clearly the best option to take as it keeps the income as part of a court award.
There may be a perfectly good reason why the money is needed now. This could be as simple as the recipient wanting to clear debt just so that they can concentrate on rebuilding their life, or it could be an emergency need for some disability equipment which will be needed as a result of the accident. Of course, even though someone has suffered a personal injury and received a settlement, they may still be exceptionally skillful at investing money, and may just want to take control of their future anyway.
Where the state laws are so restrictive that there is no possibility of appealing to the court, there is no real option other than seeking a structured settlement buyout. These are offered by companies who are prepared to pay out a lump sum immediately in return for buying the contract and receiving the money in installments. While this type of annuity buyout is a way of getting hold of your money early, it does carry several drawbacks.
Firstly, you are no longer getting money as a result of a court award, and this has negative tax implications. Secondly, you are having to put your trust in a private company, and with a lot at stake, and there are a lot of complaints across the internet about some of the companies like J.G. Wentworth Direct Finance that handle these transactions.
Any time you involve a private business, you are inevitably bringing in an extra element of risk. That element may be small, but it still definitely exists. Make sure you carry out extensive research into both the laws in your state, and the company you will be entrusting with the structured settlement transfer, or when you are doing an outright sale of annuities.
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