Shopping for offers and Consulting a Lawyer

Shop Around For Offers

Remember, do not take up the first offer you receive for the sale of your structured settlement, if you are approached about it, or if you find yourself a buyer. Almost always, there is a benefit in consulting different brokers or buyers in regards to your settlement. Just be sure that you are working with a reliable lawyer who has an established reputation.

Consult A Lawyer

In regards to your structured settlement it is always wise to consult a reliable lawyer before agreeing to the sale. Doing this has a number of benefits, like ensuring that your rights are protected. The lawyer can also help when you are not in control of a situation, for example if a company which purchases your settlement is, for some reason, not able to collect the payments from the insurance company which issued the annuities in your settlement package. A lawyer will be able to tell you if the terms of the purchase agreement are reasonable, and may also be able to advise you as to whether the offer made for your settlement is adequate. 

Tax Consequences

A typical structured settlement is designed with a single mindset, to provide significant tax advantages to the injured plaintiff. Because of this there can be significant tax consequences associated with selling part or all of a structured settlement settlement. For example, while the payments made under the structured settlement were not taxed, you should expect to have the lump sum amount received through the sale of the structured settlement to come with a tax deduction.

Restrictions on Structured Settlements

Two Thirds of the states have laws restricting the sale of structured settlements. Then there are also the additional federal regulations that apply to the sale of structured settlements. A court approval will have to be obtained for the sale for the sale, and most states have statutes in effect which regulate the transfer process.

Being that as it is the insurance companies that issue the annuities for the structured settlement may refuse to cooperate with the sale of a structured settlement, citing policy language and asserting that payments cannot be assigned.

Sale of a structured settlement

Quite a few people who have obtained a structured settlement through their personal injury or workers' compensation claims, wonder if they should try get a sale for their structured settlement in return for a payment in lump sum. This may be a number of things, relatively modest curiosity, piqued by an advertisement announcing "The money is yours!", a promise of a cash on the spot payment,or it may be based upon a more dire need for funds. However, the sale of a structured settlement is not so easy and not always possible. Then of course you have to decice if the sale of a Structured settlement is an economically wise decision.

Your Structured Settlement Should Work For You
The best time to decide whether a structured settlement is right for you or not is before you consent to such one such structured settlement. You may wish to press for a lump sum amount, for periodic lump sum payments in addition to smaller annual payments, or for a lump sum payment that can be issued at a future date when you anticipate a particular need. If a package in consented upon that is in your best interest at the outset, you will be able to maximize the value of your settlement and get the greatest tax benefit from the structured settlement.

Remember that companies which purchase structured settlements intend to profit from the purchase of your structured settlement. Their profit comes out of the structured settlement payments you would otherwise be receiving.

Another aspect of the sale is the fact that if your future earning capacity has been impaired as a result of your injury, you should consider your future needs when you are making any decision regarding the sale of your structured settlement.