Selling Structured Settlements

Q: What is a structured settlement?

A: A structured settlement is a way to settle a personal injury claim or payment obligation in which the claimant receives periodic settlement payments for a length of time in the future.  Typically, these payments are set up to be tax-free or tax advantaged.

Q: Should I consider a structured settlement?

A: You should consider a structured settlement in the following cases:

• Severe injury cases where the claimant needs regular income for medical care, living expenses, and family support
• Wrongful death cases where the surviving family members need regular income
• Cases involving temporary or permanent disability
• Cases involving minor or incompetent persons and their guardians

Continue Reading »
Structured Settlement Frequently Asked Questions/FAQ

You may have received structured settlement payments through personal injury or workers’ compensation claims.  You may be wondering if you should try to sell your settlement payments in exchange for a lump sum of cash.  Be aware, however, that despite the claims of advertisers, that selling your structured settlement may not always be possible – and even if it is possible, it may not be an economically wise decision.  There are some benefits to selling structured settlements, but also some hidden costs to be aware of.

Tip #1: Make a Wise Settlement Decision from the Beginning

If you have the option, it is always best to make a decision about receiving structured settlement payments before you agree to a settlement.  You may, from the beginning, choose to press for a lump sum payment vs. periodic payments.  This is not just black and white, either – you may negotiate for a combination agreement.  You may want to get a smaller lump sum plus periodic payments, or decide that you will need a lump sum at a future date.  You may want to consult with a tax adviser and see what arrangement makes the most sense from a tax perspective.  If you are in this stage of the settlement, remember: now is your best time to decide .  Should you decide to sell your structured settlement at a future date, you will be losing a percentage of your money to companies that buy structured settlement payments.
Continue Reading »
Top 5 Tips for Selling Structured Settlements

People are often confused by the title "structured settlement broker," as this term can come up in two completely different situations.

Continue Reading »
Two Types of Structured Settlement Brokers