Structured Settlements Authority

Rethinking Structured Settlements

A Structured Settlement May Not Be the Right Answer

A Structured Settlement May Not Be the Right Answer

Structured settlements are great at providing long term financial security to personal injury victims. Structured agreements provide predictable payments that are received tax free. Usually an agreed upon structured settlement payment plan is well thought out and it does not makes sense to change it. However in some cases a financial or family emergency can strains the financial resources of the injured party and in those moments some people choose to sell structured settlement payments for cash.

In emergencies the structured nature of settlement payments becomes restrictive and does not accommodate the flexibility needed to address major financial emergencies. If you find yourself in this position it is wise to seek the help of professionals including structured settlement brokers, lawyers, and financial advisors. You will want to learn as much as you can and also to compare the offers of several companies before you make any decision. Remember you are in control, make an informed decision that is right for you.

How to Get Cash for a Structured Settlement

If you received an award in a personal injury case, you may have opted to receive a series of periodic structured settlement payments rather than receiving a lump sum of cash up front. The payments are usually received as a tax free annuities and are paid by an independent third party. In most cases this is the end of the process but in some instances people can have a change of mind or in needs and then decide they would rather have cash for a structure settlement.

There are many companies that offer cash for structured settlements and they have a variety of programs that will allow you to access any portion of your annuity. You may want to sell the payment rights for just a few years and receive a partial cash lumpsum while still retaining a portion of your monthly payments. Alternatively, you could sell your structured settlement payment rights for a single payment. You really have the control to customize an arrangement to get cash for a structured settlement based on your unique needs. This is an important decision that has legal and financial consequences to be sure to consult your advisors prior to making a final decision. During the process learn as much as you can and get several free quotes and compare offers to make sure you get the most cash for you settlement annuity payments.

Legal Aspects of Getting Cash for a Structured Settlement

If you have ever considered getting cash for your structured settlement, you may first want to contact a lawyer and financial advisor. There are specific regulations in most states that restrict the sale of structured settlements. You will also need court approval to receive cash for your structured settlement or be subject to a severe penalty tax. Restrictions at the federal level can also affect the sale of structured settlements to a third party individual and some insurance companies won't transfer annuities to third parties.

Because of all of these complexities it is always a good idea to seek professional assistance. It is also a good idea to compare several free quotes when you seek cash for a structured settlement. Do your homework and check out multiple companies to see which one can offer you the most cash for your structured settlement. Beyond the money you will receive you also should consider the integrity, reputation and track record of the company. Receiving cash for a structured settlement can seem very appealing, especially if you need a lump sum of money to satisfy your immediate needs but remember to have the patience to get the help you need prior to making your final decision.

NSSTA 2006 Annual Meeting

Last May the National Structured Settlement Trade Association (NSSTA) held their annual meeting, for the first time in Puerto Rico. The meeting featured speakers on various structured settlement topics, educational sessions as well as a business meeting.

NSSTA is a non-profit organization headquartered in Washington, D.C. with a membership consisting of more than 700 structured settlement professionals including: brokers; annuity and trust providers; liability insurers; and attorneys who specialize in structured settlement agreements.

During the meeting adopted a new mission statement, amended as follows. The primary mission of the Association shall be to promote the establishment and preservation of structured settlements in order to provide long-term financial security to personal injury claimants and their families through periodic payment of compensation. The Association also shall promote utilization of periodic payment arrangements generally as a tool for resolving claims. The Association shall carry out its mission through public advocacy, legislative action and educational programs

The NSSTA also reported on the progress of its Broker Relationship Initiative, which was created in 2005. The stated purposes of this initiative is to determine how we can strengthen the future of structured settlements for the benefit of all concerned and identify and, where we can appropriately, discuss and address key issues of concern to the structured settlement industry.

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