Archive for July, 2009

Lump Sum Cash, Are You Eligible?

Who Is Eligible to Sell Structured Settlement Payments for Cash Lump Sum?

Actually, all structured settlement recipients have the option to sell all or part of their future payments for lump sum cash if they need to raise a considerable amount of money when faced with financial dire straits. Although it is an option they might want to consider as a last resort because of the difficult processes involved and the unforeseeable consequences selling structured settlements may have.

Structured settlements ensure a periodic and reliable inflow of funds that recipients may need for ongoing treatment for injuries or perhaps other long term needs. If they rely on this inflow to maintain their quality of life, recipients may be giving up future stability for a present need. Furthermore, the lump sum they will receive usually has less value than the sum of the structured settlement payments. With so much at stake, structured settlement sellers ought to try other ways of raising money before selling all future payments.

In some cases where the recipient is already fully compensated for all damages and has recovered from his or her injuries before the settlement is paid in full, the remaining future payments may serve the recipient better as a lump sum that may come in handy for paying for other necessities.

Consider the Legalities Before Selling Structured Settlements.

There are laws in approximately two thirds of the states which restrict the sale of structured settlements, and additional federal regulations apply to the sale of structured settlements.

You should expect to have to obtain court approval for the sale, and most states have statutes in effect which regulate the transfer process. The insurance company that issued the annuities for the structured settlement may refuse to cooperate with the sale of a settlement, citing policy language and asserting that payments cannot be assigned.

Also, when the negotiations take place, some contracts might put up the restriction on sale of the structured settlement. Since structured settlements help in tax savings, it might make the person liable to pay tax after the settlement is sold.

Possible Lower Market Value for Emergencies

Also, if the settlement is being sold to raise cash for an emergency, it is possible that the insurance company might make an offer considerably lower than market value.

Licensed brokers and attorneys would be able to assist in selling a structured settlement in an appropriate manner since they are specialized in this field. It is important to take their advice before selling either a part or whole of a structured settlement as this might result in a bad judgment on part of the individual.

Categories: Articles, Buyer of Structured Settlement Payment, Sell Structured Settlement Payments, Structured Settlements, lump sum payments.

Selling a Structured Settlement Annuity

What you need to know before selling a Structured Settlement Annuity

When selling a structured annuity settlement there are many questions which begin to arise. Before you decide to sell structured settlements, think about what you want/need the money forIf it is an immediate medical expense, buying a home or the decision to go back to school is usually considered good reasons. Examine your needs and the needs of your family as well. Perhaps you want a new home. Do you have children approaching college age? If so, you’ll not only incur significant tuition expenses, you’ll also have less of a need for a larger home.

Selling your payments will result in a loss from the full amount. Consider whether or not it is important for you to sacrifice the security and future total amount before you make a decision. You will have to understand the implications, benefits and pitfalls so you can feel comfortable making an informed decision.

“Will I get the full amount from my structured settlement annuity that I would receive over a period of time?”

No. The amount you would receive over a period of time is calculated by adding interest to the principal amount. Instead, you may receive the present-day value of the amount. This present-day value may have to be further discounted to cover the costs to do the deal. The rest will be sent to you in one lump sum. You might want to shop around to find out where you can get the best deal.

Categories: Annuity Payments, Blog, Cash Structured Settlements, Sell Structured Settlement Payments, Structured Settlements.

Is Money Received From A Structured Settlement Transfer Tax Free?

When your receiving money from a structured settlement transfer, is it tax and interest free?

The lump sum you receive from a structured settlement buyer will have the same tax treatment as your structured settlement annuity. In other words, if your structured settlement payments were tax free then the lump sum you would receive from the sale would be tax free as well.

Most structured settlement annuities qualify for tax free treatment under section 130 of the Internal Revenue Code.

The U.S Government has taken several steps to protect tort victims and other parties from unfair taxes that resulted from personal injury settlements.

Section 104(a)(2) of the Internal Revenue Code states that damages (money) received from personal injury settlements and sickness should not be considered as income and therefore should not be subject to tax.

Tax Free Structured Settlements

The U.S. Government passed Section 5891 of the Internal Revenue Code in 2002 which protects annuitants in the sale of their structured settlement payments. Section 5891 requires that the sale of structured settlement payments be approved by a judge in accordance to the state legislation and statute. This model act was created to make sure that every structured settlement transfer is in the best interest of the annuitant and dependents of the annuitant. The money received from the transfer of structured settlement payments is tax free 99% of the time. If your current structured settlement is tax free, and you sold the rights to those payments, the lump sum you would receive would be tax free.

Categories: Blog, Cash Structured Settlements, Sell Structured Settlement Payments, Structured Settlements, Woodbridge Investments LLC.

To Sell or Not to Sell Lottery Payments

So you’ve won the lottery and you originally chose to receive periodic payments?

It may already have crossed your mind to sell some or all of your payments for a lump sum payment. The question is: Is it a good idea to sell lottery payments?

There Are A Number Of Reasons To Sell Lottery Payments

If done for the right reasons, cashing in your lottery payments can work to your advantage. The money can be used to pay bills, buy a home, start a business, pay for college tuition, or fund other investments. Another major consideration is inflation. Your money will be worth less in the future than it is now. Just recall how much a dollar could buy years ago. No matter what your reason, you may want to consult with a financial advisor before you sell lottery payments.

Know These Fundamental Principles

Before you sell, it is important for you to understand some of the fundamental principles involved when people sell lottery payments:

1. You will receive a discounted lump sum cash price, not the full face value of your lottery payments.

2. If you decide to sell lottery payments later rather than sooner, the amount offered you will be smaller.

Once you understand these basic principles and take into consideration your personal financial situation, you should be able to decide how much of your periodic payments you ought to sell.

Categories: Blog, Lottery Payments, lump sum payments.

Things to Avoid When You Sell Structured Settlements

When it is time to sell structured settlements, choosing a structured settlement buyer is not easy. All of them seem to promise the same thing: immediate cash. Looking past the sales pitch, you’ll find that not all buyers are equal. Here is a list of things to watch out for when choosing a structured settlement buyer.

Structured Settlement Buyers Who Promise Unrealistically Fast Results

Don’t be fooled by these empty promises when you sell structured settlements. The speed of the process is at the mercy of court approval that no one could expedite. The average time for court approval is 90 days, with some states being quicker (45 days at the very least); so beware of companies claiming that they can process your purchase in less time. The only thing that will speed up your processing is efficient, accurate preparation and application.

Structured Settlement Buyers Who Offer Poor Support

Avoid buyers who offer just the bare minimum support and information needed for the transaction. Choose the most helpful buyer you can find, the kind that provides good customer service with all aspects of the transaction. Going with a buyer who is willing to work closely with you prevents errors in your court petition – errors that will lead to the denial of your petition to sell structured settlements.

Inexperienced Settlement Buyers

Though they may have your best interests at heart, younger companies often do not have the sufficient experience to convert your structured settlement into the best deal you could hope for. It is still best to choose an industry leader with years of experience and a long list of satisfied clients under their belt.

Settlement Buyers Who Keep Information from You

Choose a structured settlement buyer who is transparent with their actions. Companies who believe that they are entitled to non-disclosure are probably trying to hide hidden fees whereas an honest buyer will be upfront with all costs and rates pertinent to your transaction to sell structured settlements.

After all is said and done, what you want is someone who is both ethical and dedicated to giving you a fair deal; professionals who are sincerely concerned with your best interests. Structured settlement factoring is an expensive transaction and financial last resort for someone with significant financial need. If you are unable to find an alternative, at least find a buyer worthy of your trust.

If you have questions, Woodbridge Investments can make sure you are making the right choices in finding the right broker to sell structured settlements. Fill out our Quick Form or comment below.

Categories: Blog, Sell Structured Settlement Payments, Structured Settlements.

New Lottery Winner? Structured Settlement Companies Can Help

So You Just Won The Lottery!

You may not realize it, but a structured settlement company can help you as soon as you hit the jackpot by winning a lottery drawing or at a casino. You may be overwhelmed knowing you’ve won so much money, but sudden wealth can have its drawbacks.

Incredible as it may sound, there are a surprisingly large number of lottery winners who have ended up filing for bankruptcy. A structured settlement company can help you manage your lottery winnings by creating a payoff that fits your lifestyle and needs. For example, the structured settlement company can work with you to develop an equity annuity that protects your winnings while giving you access to your funds on a payment schedule that conveniently coincides with your regular expenses.

We Can Help You Manage Your Winnings

When you manage your lottery payments by using the services of a structured settlement company, it’s like winning twice. You get the lottery winnings and a lottery payment schedule that makes life more manageable. And isn’t that why you played the lottery to begin with?

Categories: Blog, Lottery Payments, Structured Settlements, Woodbridge Investments LLC.