What is a Structured Settlement?
A structured settlement is when a person is made to pay monies to another to right a wrong. These are usually civil cases where the at-fault person must make the other person whole or compensate them for damages caused.
Nearly 40 years, structured settlements emerged when the courts ordered pharmaceutical companies to make payments to women who had taken the drug thalidomide; this drug caused lifelong birth defects to the babies that were born from mothers who had taken this drug.
A structured settlement occurs when a monetary civil award is scheduled to be paid over a period of time. One of the benefits of a structured settlement is the guarantee of future payments over a long period of time. This keeps a person from spending all of the money gained from the settlement award.
Oftentimes, it may be quite beneficial to get a lump sum of your civil settlement award. You most likely have been in the litigation process for a long time, so when you are finally awarded the settlement, you have already had to make financial sacrifices or other sacrifices as a result of the harm caused to you by the at-fault party.
Who Receives a Structured Settlement?
There are three main instances when a person will receive a structured settlement. Personal injury, wrongful death, and worker’s compensation are the main three instances.
Personal Injury cases result when a person is injured and deems that another party is at fault for that injury. As a result, the injured party seeks monetary compensation from the at-fault party.
A wrongful death case occurs and the family of the deceased can bring a lawsuit against the at-fault party. The family may receive a certain stream of tax free payments or the family receive compensation to replace the income of the deceased.
What Are the Pros and Cons of a Structured Settlement?
Structured payments are tax free. You can’t renegotiate the settlement agreement. It is a final agreement.
An Alternative to Structured Settlement Payments
There is an entire market that exists to buy out the future payments of structured settlement recipients.
These companies will pay you a lump sum of money in exchange for you signing an agreement allowing
What Alternative Do You Have to Structured Settlement Payments?
There is an entire industry that is dedicated to buying the future payments of your settlement. These companies are willing to pay you a lump sum up front in exchange for the right for them to receive all future payments. They will pay this lump sum amount before your payments start. This can be quite beneficial to you if you are in need of a substantial amount of money before the payments begin. Of course this arrangement has its pros and cons.
You must determine your own individual needs when making a decision to use a company like this. Most importantly, do your research.
Reviews of Structured Settlement Companies
Fairfield Funding has high ratings. This company is backed by a 100% guarantee. This company works to get you the most money, funds in your hands within five days, fast closings, and no interest advances.
Peachtree Financial Solutions has a proven track record of providing tens of thousands of people with lump sum payments. Customer reviews are largely favorable of this company. Peachtree is a leading purchaser of structured settlement payments. Customers are consistently satisfied with the professionalism and prompt attention they receive from Peachtree.
Fortunately, you have many options when seeking out a company to buy out your structured settlement. It is important to do your due diligence before making a decision. There are a number of things to consider once you sign up with a company, the agreement is final, so it is important to make an informed decision that is in your complete best interest.