Get A LUMP SUM for Your Structured Settlement

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Frequently Asked Questions About Structured Settlement Funding

You may have been awarded a structured injury settlement for which you are receiving monthly payments. This can get complicated when thinking about financial options and future payments. You also may have seen TV commercials or heard on the radio that you can get cash now for your existing long term settlement. In most cases this is true. To get the right information about cash options, it is important to contact a structured settlement funding professional to make sure your questions and funding options get answered.

Get started today! Receive cash for future annuity lawsuit payments. Click here to send your information to a settlement purchaser funder and get a free quote for a structured settlement transfer.

 

Q. I think I have a structured settlement. What exactly is a structured settlement?

A. Structured settlement contracts are between a defendant and plaintiff usually where the plaintiff along with the courts come to an agreement on a way to settle a lawsuit. The cases usually are medical malpractice, hospital / doctor malpractice, personal injury cases, auto accidents, product liability and other injury claims, including torts. The cash settlement is usually periodic payments over a time period, called an annuity or structured settlement.  Many times a lump sum is involved right away or offered then a structured settlement is planned out for the injured party. Sometimes there is an option of choosing a lump sum or small lump sum and annuity (payments) for the settlement. Lump sums are smaller than the periodic payments over time, because of the present value of money, inflation issues, and predicting risks in the future value of money.

 

 

Q. I have heard that I can get a lump sum or receive cash now in return for some of my planned periodic settlement payments. Is this true and how does this work?

A. The law has been updated to allow certain factoring or funding companies to buy some of your settlement payments (they exchange them for cash now) and offer you a lump sum in return. The structured settlement purchaser company will go to a judge and prove that the annuity receiver (you) shows a need for the lump sum or cash now. Sometimes a lump sum of cash is necessary to pay for important expenses or emergencies.

 

 

Q. Do I have to pay taxes on the lump sum I may get?

A. This site cannot offer advice on taxes as everyone's situation is unique, and it would be best to consult a tax professional. That said, on June 10, 1999, the IRS issued a Ruling 119273-97, along with recent IRS Code section 5891 & law HR 2884 which all confirm that an individual’s sale of structured settlement payments would not create a taxable transaction as long as a judge approves the transaction.  It’s best to speak to a structured settlement professional to find out the tax details and cash options for your future payments.

 

Get started today! Receive cash for future annuity lawsuit payments. Click here to send your information to a settlement purchaser funder and get a free quote for a structured settlement transfer.

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Click below links to find structured settlement local information by state.