Quick Reminder

Hello and thanks for coming back to my blog. I'd like to remind you that the end of this years quarter is almost up and as always that means the start and the end of some businesses. You could nab yourself a nice Settlement for the start of next years quarter and hopefully build up your empire from there.

Also I'll be updating this blog quite a bit in the coming days so prepare yourselves for a flurry of incoming information regarding Structured Settlements it will range from purchasing all the way up to presentation ending.

Law complications involving Structured Settlements

In an assigned case, the defendant or property/casualty company does not wish to retain the long-term periodic payment obligation on its books. Accordingly, the defendant or property/casualty insurer transfers the obligation, through a legal device called a qualified assignment, to a third party. The third party, called an assignment company, will require the defendant or property/casualty company to pay it an amount sufficient to enable it to buy an annuity that will fund its newly accepted periodic payment obligation. If the claimant consents to the transfer of the periodic payment obligation (either in the settlement agreement or, failing that, in a special form of qualified assignment known as a qualified assignment and release), the defendant and/or its property/casualty company has no further liability to make the periodic payments. This method of substituting the obligor is desirable for defendants or property/casualty companies that do not want to retain the periodic payment obligation on their books. A qualified assignment is also advantageous for the claimant as it will not have to rely on the continued credit of the defendant or property/casualty company as a general creditor. Typically, an assignment company is an affiliate of the life insurance company from which the annuity is purchased.

An assignment is said to be "qualified" if it satisfies the criteria set forth in Internal Revenue Code Section 130. Qualification of the assignment is important to assignment companies because without it the amount they receive to induce them to accept periodic payment obligations would be considered income for federal income tax purposes. If an assignment qualifies under Section 130, however, the amount received is excluded from the income of the assignment company. This provision of the tax code was enacted to encourage assigned cases; without it, assignment companies would owe federal income taxes but would typically have no source from which to make the payments.

Finding a purchaser

Finding a structured settlement purchaser is not that difficult if you are looking in the right place for one. If you have decided that selling a structured settlement you have is what you must do for your financial welfare, then your first stop for finding a structured settlement purchaser should be over the Internet. The Internet is like a gigantic telephone/ information book all rolled into one so begin your search for the most suitable structured settlement purchaser there.

You can choose to sell either all or part of your settlement to a structured settlement purchaser. You should hire yourself an attorney who will look out for your best interests and can advise you accordingly when it comes to many of the decisions that must be made once you locate a structured settlement purchaser.
Finding a qualified and experienced broker to help you in dealing with the structured settlement purchaser is essential to the success of the purchase. This is your money that you rightfully were granted due to a personal injury claim or a workers’ compensation claim so you must take the necessary steps to find the best structured settlement purchaser possible!

Thanks Guys!

I've had such a great response to this blog that I have been looking deeper and deeper into structures and I will be providing you with some more quality updates in the future. Keep coming back to check.

What are structured settlements?

First of all, exactly what are structured settlements and how do such arrangements work? When a person wins a lawsuit based on worker's compensation, personal injury, or medical malpractice, often the court will rule that compensation be paid in installments, either in small, regular amounts or a few lump sums over the years. Often, these payment plans will cease upon the death of the payee, whether or not there are dependents involved. Before accepting a compromise, injured persons need to work closely with lawyers to ensure that the settlement is going to benefit them to the fullest possible extent in order to prevent future financial distress and the loss of well-deserved compensation. This careful planning will prevent the undesirable necessity of finding a company to purchase a structured settlement from its possessor when he finds that waiting for a monthly check isn't a tolerable system.

If, however, a person has already settled a legal case and finds that the periodic payment plan is not working for him or decides that larger amounts of money are needed immediately in order to purchase medical equipment, a customized vehicle or home to accommodate injuries, or similar items, or does not expect to live long enough to benefit from long-term compensation, may want to consult various companies that offer to buy a structured settlement . Such companies will allow him to sign over annuities in exchange for immediately accessible cash. Persons considering this option should know that while their annuities are not subject to taxation, the lump sum received from a third party may very well be, causing them to lose even more well-deserved money. This is a decision that requires long, hard thought and should not be entered in to hastily or lightly, as its consequences can be disappointing at best and catastrophic at worst. If a person is confident in his investing and money-handling skills, he might be able to pull off the sale of his annuities aptly, but this is not always the case.

In general, this option is a very bad investment decision, as it is possible to lose up to half of one's settlement  money in the process. Plus, persons on a periodic payment are often unable to work and need the regular installments to meet their daily needs; if these payments cease and the person is unable to support himself by working due to injuries, his financial need will be much greater than before a company agreed to purchase a structured settlement from him. A Biblical proverb sums up this situation very well: "The simple inherit folly, but the prudent are crowned with knowledge" (Proverbs 14:18). This is a financial decision that could end in folly, especially if rushed into without sufficient forethought and good legal advice.