A structured settlement is an insurance or financial arrangement negotiated between the claimant and the defendant in a lawsuit. In this agreement, the claimant agrees to resolve a personal injury by receiving an amount. Only this compensation is not received in lump sum. A stream of money is paid on an agreed schedule by the defendant to serve as an income to the injured party.The income tax rulings stated that if a set of requirements were met the claimant would owe no income tax on the settlement amounts.The periodic payments are often funded through a purchase of annuities, these generate the future payments. An annuity is a fixed sum of money paid to the claimant each year, usually for the rest of their life.
The Possibility of Selling Structured Settlement
There are times that the recipient of a structured settlement will seek to sell it. This is to gain a lump sum payment to settle their financial issues. They may choose to sell all or a portion of their compensation. The company handling the structured settlement company often pay the recipient a discounted lump sum in exchange. This system of selling compensation for lump sum benefits the recipient by allowing access to money up front. And of course, this arrangement also benefits the company that purchases the compensation at a discount.
Many people pay off their credit card loans and other high-interest debts. This helps them reduce interest costs relieving themselves of stress. Others pay their mortgages, stop foreclosures, make renovations and buy homes. May people sell their compensations to pay for medical expenses. Others use their structured settlements for education expenses. They pay tuition fees and settle for a bright future. So, weigh all the options before you take any decisions. What these recipients who are selling their compensations need to be aware of is that there are many predator companies that many take advantage of their hour of need and hand them less than fair deals.
Structured settlement companies to trust
Here are a few companies that have been in the business for decades now. Their representatives present your case in the court. The judge arrives at an agreement and then the cash is disbursed.
But first, you should know that there are factors to consider while selling the compensation. There are two kinds of structured settlement companies – the Brokers and Direct Funded ones. The annuity brokers are trained in structured payments. They can aid the entire process of gaining full payment or an advance against the compensation. Then there are direct Direct-funded companies that have their own sources of capital. These are free to make decisions on the purchase of compensations. Other companies use third party guarantors which can lead to delays.
Here are a few reviews of the companies you should consider to sell your structured settlement
- J.G. Wentworth Structured Settlements are the largest annuity and compensation purchaser in the country for 20 years. They offer the best price guarantee and customized all transactions to fit your needs. This company can help you get the cash you need now. They are the go-to resource for the people looking to access their future cash now. Since J.G. Wentworth bought their first compensation payment stream, they have helped thousands of people sell more than $8 billion in future payments.
- Olive Branch Funding is highly experienced in this field and provide money upfront in exchange for future compensations, annuity payments and lottery award, fast. They offer personalized services and are committed to offering cash solutions to your needs, now.
- SenecaOne offer personalized services to solving your immediate cash needs and help discover long-term solutions. They come with a deep understanding of their client’s unique financial needs. Thus, they deal one on one and one at a time.SenecaOne is a structured settlement and annuity purchasing company that offers payment plans customized to the recipients. This gives the control to the customer on how much or how little they sell.
Before you sell, get quotes and compare from several companies, they consider many factors before they decide the price of your compensation. Find out the purchase price before selling, note the time value. The time value factors in the idea that this money is available now. Thus, more valuable than the money available later, as you can use, invest and earn off it – now. Mind the duration of settlement, ensure that they pay quickly. Note the timing of the payments as the sooner the compensation is received, the higher the purchase price you obtain. The total amount of settlement affects the price you will receive, the lower value the more difficult it is to sell for a lump sum. Know thes urrender charges or fees, paid when selling or transferring a compensation. You will also pay a legal fee, broker fee other fees.