Question:
Do I need to actually own a Structured Settlement or Promissory Note in order to be able to get Lump Sum cash?
Answer:
Yes! You
MUST actally own the Structured Settlement or Promissory Note in order
to trade in the periodic payments for Lump Sum cash.
Question:
Can I still fill out the form
to get money even if I don't own or am not the beneficiary of a
Structured Settlement or Promissory Note?
Answer:
No! Unless you are the beneficiary or the owner of a Structured
Settlement or Promissory Note - receiving periodic payments - you are
NOT QUALIFIED to receive Lump Sum cash. Therefore if you fill out
the form - it will be "scrubbed" and discarded.
Question:
How long until I get my Lump Sum Cash - assuming I am qualified?
Answer:
The Structured Settlement Alliance can usually arrange for you to receive your cash in (10) TEN days OR LESS!
1. What is a StructuredSettlement?
A structured settlement is a type of court award. When cases go to
trial it is typical for juries to award funds to a plaintiff in the
form of a lump sum. In many cases this is not necessarily desirable;
the SS divides the award, or settlement, into several periodic
payments, scheduled to fall most typically on a monthly or yearly
basis. Structured settlements are most commonly awarded in wrongful
death and injury cases. Minors will often receive their court awards in
the form of an structured settlement, as a means to ensure that funds
remain for expenses such as education and health care. In many cases
where minors receive structured settlements, they have lost one or both
parents. In light of this, a structured settlement could be considered
necessary in order to provide stable support in the absence of a
parent’s income.
A structured settlement is not necessarily a guarantee of receiving the
funds awarded to you. An structured settlement grants the recipient the
right to receive payments from a funding source, such as an insurance
company. Occasionally, these funding sources collapse. If an insurance
company is funding the settlement, and the company goes bankrupt, the
recipient of the settlement could lose years in payments. Structured
settlements remain, however, popular with the government and insurance
companies. The government benefits from this type of settlement because
this type of award reduces the number of people who require government
assistance. Insurance companies find it much more profitable to pay a
little bit at a time than to pay a large sum all at once.
2. How do Structured Settlements work?
Structured settlements are agreed to before a case goes to trial.
Because of this, they help ease the pressure on the clogged court
system. In 1982, laws were passed by Congress to regulate the
administration of structured settlements. Many plaintiffs choose a
structured settlement over a trial because if their case goes before a
jury, the jury may not award them anything at all. Insurance companies
are also eager to avoid trials. In the past, juries have awarded
enormous settlements to plaintiffs. Insurance companies now often
consider structured settlements a less expensive way to resolve a case
than a jury trial.
As for the government, there was a lot of motivation to organize and
clarify structured settlement law. In wrongful death and injury cases,
where structured settlements are commonly used, the award is intended
to replace lost income. In the past, there were many cases in which
large lump sum awards would be spent quickly. In the long run placing
the recipient in the same position they were in before the settlement.
This led many to believe that scheduled payments would better replace
lost income than a single large payment. A law passed in 1919
restricted taxes on court awards, and many of those same restrictions
apply to awards today, including structured settlements.
3. Why Should I Sell my Structured Settlement?
Many people who receive structured settlements consider selling them.
There are several factors that determine the quality of a structured
settlement. A structured settlement can quite possibly be paid out over
more than ten years. Over time, inflation lowers the value of the
payments. The two-thousand dollar payment someone receives today will
still be two-thousand dollars ten years from now, but it will probably
not cover the expenses it does right now. Many people who have been
receiving structured settlements for several years find that it is no
longer adequate for their needs. Plaintiffs frequently do not
adequately consider inflation when accepting a settlement, and when
they realize they aren’t getting what they thought they signed up
for, they decide it’s time to sell.
Even if plaintiffs do account for inflation when they agree to a
settlement, that’s not the end of their problems. Many plaintiffs
have no way of knowing if the settlement offered by an insurance
company, or any other funding source, is fair. It is common for
plaintiffs to later learn that the settlement they received was below
the amount typical for their type of case. Another popular reason to
sell a structured settlement is the inflexibility of the payment
schedule. Many types of schedules can be used, but once one is agreed
to, it cannot be changed. Debt, taxes, health care, or any unexpected
expenses do not in any way change the payment schedule. Selling all or
part of a structured settlement is the only way to receive more money
from your award once you have agreed to it.
4. What Should I Know Before Selling my Structured Settlement?
Selling a structured settlement is often a smart financial decision,
but there are some things recipients of a settlement should be aware of
before deciding to sell. Many people considering selling a settlement
often worry that they will lose the tax-exempt status they enjoyed for
the payments from their settlement. The fact is, money earned from the
sale of a structured settlement remains tax-exempt. It is also
important to note that the recipient’s sale of a settlement does
not void the settlement. The sale is merely a transfer of the right to
receive payments from the funding source of the settlement.
Those considering selling a structured settlement should also take some
time to familiarize themselves with local laws governing such sales. A
majority of states require some form of legal process before a sale can
be carried out. It is recommended that those considering selling
consult an attorney to make sure they are doing everything necessary to
ensure that their sale is legal.
An attorney can be helpful in other ways. It is not uncommon for
structured settlement brokers to underbid for a settlement. A hasty
decision could result in the same dissatisfaction that led to the
recipient wishing to sell. Verifying that a broker is certified and
that the price offered is fair are recommended steps before completing
a sale. It may also be advisable to seek additional professional
advice, such as from a CPA.
5. Will My Sale be Taxed?
The tax status for profits from sales of structured settlements had
been historically unclear for quite some time. In 1999 the IRS
determined that the profits a plaintiff earned from the sale of a
structured settlement were non-taxable. This was a clarification of a
long-standing, confusing issue, but it did not resolve all questions
regarding taxes and structured settlements. The insurance companies,
for their part, had been concerned for years that it was possible for
them to suffer tax consequences as the result of a sale,
HR 2884 made clear the tax status of these profits, along with the
legality of structured settlement sales. This put to rest the
hot-button issue of tax consequences for insurance companies or other
funders of a structured settlement. Previously, the issue had resulted
in court battles, as insurance companies, intending to block structured
settlement sales, fought both potential buyers of structured
settlements, as well as the plaintiffs who had been receiving them.
The law also creates a mandatory court review of any sale or transfer
of structured settlement payment receipt rights. The purpose of this is
to ensure that the sale of the settlement is truly in the best interest
of the plaintiff. Issues at stake in such hearings include whether or
not the plaintiff has a legitimate, urgent need to gain access to money
awarded him or her as a structured settlement as well as the mental
competence of the plaintiff. In most cases, when these issues are
resolved, the sale is allowed to proceed unhindered. Failure to gain a
court order prior to a sale results in financial penalties under HR
2884, and in many states is completely illegal.
6. Is Selling My Structured Settlement Legal?
Absolutely! Some people may have the impression that selling a
structured settlement is illegal, but this is incorrect. Part of the
problem is that several insurance companies, when arranging a
settlement, put clauses in place prohibiting the sale or transfer of a
structured settlement (although these can usually be worked around).
Also, several states have regulations in place governing the sale of a
structured settlement. Most of these statutes are designed to protect
the seller of the settlement, however some laws appear to have been
written in favor of the insurance companies.
The laws around structured settlements are not outright prohibitions,
but instead are intended to involve the courts in the sale of a
structured settlement. This has generally been a good step. The
involvement of the courts is a means of verifying that certain
conditions have been met. The courts will evaluate the seller’s
financial situation, medical condition, and case history. According to
federal law, a sale cannot go through without the plaintiff adequately
demonstrating that the sale is in his or her best interest. The
involvement of the courts also reduces the ability of disreputable
companies to purchase a plaintiff’s settlement.
Before selling, a plaintiff should consult an attorney, as well as a
financial professional. Attorneys who have experience working with
personal injury, wrongful death, or workers’ compensation cases
may have expertise in negotiating a settlement, but are often unaware
of the details of the selling process, a fact that encourages the
belief that a sale is not legally possible. Selling a structured
settlement without a court order carries tax consequences in all
states, and so it is strongly recommended that those considering
selling their settlement receive legal advice to determine what steps
are necessary to make sure their sale is properly carried out.
7. If I Don’t Sell My Structured Settlement, Will I Receive Interest on the Payments?
When structured settlements are entered into, there are many options
regarding several aspects of finance. In addition to the duration of
the settlement (settlements are scheduled to last for years, with some
schedules arranged to be paid for the rest of the plaintiff’s
life) there are other, more subtle factors such as inflation and
interest. Inflation is often a problem for those who receive structured
settlements. The amount you agreed to in your settlement will often
become less satisfactory as time goes on. This is, however, a problem
for the buyer of the settlement once the settlement is sold. The seller
is not responsible for providing the buyer with anything but the
transfer of the payment rights.
The seller does not “lose” the interest from their
settlement. Any interest a plaintiff receives from the funding sources
of their settlement will be included in their scheduled payments.
Structured settlements are not typically paid from a trust-type fund.
Large insurance companies and other funding sources are not hindered in
their ability to use money intended for future payments of a
settlement. Because funding sources retain this ability, structured
settlements are the preferred option. They are able to use the money
owed in the settlement to invest and earn interest, and so lose less
money than if they were forced to pay all at once. When you sell your
settlement, you do not receive interest on what you were awarded, but
you would not actually be receiving earned interest that wasn’t
part of the original settlement.
8. Are There Any Disadvantages to Selling A Structured Settlement?
While there is not any disadvantage to selling a structured settlement
that applies in every case, selling may not be the right choice for
everybody. The most important thing to consider when selling a
settlement is the fact that selling a settlement results in a single,
large, lump sum rather than smaller, periodic payments. This may prove
problematic for some, but many people find that the advantages of
having more ready cash outweigh the promise of future payments. It is
common for people frustrated with payments that are worth less each
year as inflation increases to sell their settlement in order to have a
greater chance to take advantage of investment opportunities, real
estate purchases, and other means of ensuring their financial security.
Those who received a fair structured settlement, having properly
calculated the effects of inflation are more likely to find fewer
advantages in selling their settlement. For these people, the benefits
of selling may be outweighed by the quality of their settlements.
Finally, those considering selling their settlement should compare the
offers of several brokers. As in the process of agreeing to a
structured settlement, it is important to make sure that your attorney
does not ave connections to the broker you are considering as a buyer.
Some who sell their settlement find that they did not receive a fair
price or that their attorney had a conflict of interest.
9. What Does a Structured Settlement Broker Do?
A structured settlement broker has two different main job functions.
They have certain responsibilities during the arrangement of a
structured settlement, whilethey work with the plaintiff and the
plaintiff’s attorney to negotiate a proper settlement. When
someone decides to sell a settlement, then the broker’s job
changes. The broker is then acting as an intermediary, or middleman,
between sellers and buyers.
Attorneys often rely on the expertise of brokers when negotiating on
behalf of their clients. In addition to the broker aiding the attorney
in actual negotiations, brokers have financial experience and knowledge
that is useful in other ways. Brokers will help your attorney paint a
picture of your financial circumstances, factoring in such concerns as
medical expenses, current financial responsibilities such as children
or debt, lost wages, and the extent of your injuries. This formation
helps your attorney build the most effective case possible to
strengthen your hand during negotiations.
When someone chooses to sell a structured settlement, they typically
will work with a broker to find a buyer. Brokers will ideally find
several potential buyers and compare their best offers. This results in
a better sale for the recipient of the structured settlement, because
it forces potential buyers to make their offers more competitive. Some
brokers have an exclusive relationship with aparticular buyer, which
often produces poorer results for the seller. Sellers are advised to
verify that their broker is certified, has no conflict of interest, and
works with several buyers.
10. What Kind of Legal Protection is in Place for me when I Sell My Structured Settlement?
Local laws have much variation, and those considering selling are
strongly advised to consult with an attorney to determine what legal
protections and other legal issues are involved in their case. There
are however, some protections that are fairly typical, and these are
discussed below.
It is common for the law to require court approval for any sale or
transfer of a structured settlement. This process is intended to verify
that the sale is in the best interest of the plaintiff, and that the
process is carried out legally.
Most states require the buyer of the structured settlement to supply
the plaintiff, or current recipient of the settlement, with something
called a “disclosure statement.” A disclosure statement
makes plain what is at stake in the sale.
Additionally, it is common for the seller of the settlement to enjoy
immunity throughout the process. This means that in cases of invalid
sales of structured settlements, the plaintiff will not owe the buyer
anything. Transfers or sales carried out illegally are not considered
valid.
11. Is It Possible To Sell Only Part of My Structured Settlement?
Yes! You can sell only part of your settlement. For many people,
this is the right solution, providing a middle road between a large
cash sum and a series of smaller payments that don't help meet
immediate expenses.
12. What exactly do you purchase? What type of structured settlement instruments can I trade in for Lump Sum Cash?
This is a just a partial list of the most common types of structured settlements we purchase:
Advance on Pre Settlement
Advance on not settled cases
Annuity Funding
Business Notes
Buy Settlement
Buyer of Structured Settlement Annuities
Buying Real Estate Notes
Cash Flow Factoring of all kinds
Cash in Lottery Winnings
Cash for Future Payments
Cash for Settlements
Cash for Structured Settlement Payments
Disability Payments
Insurance Payments
Lottery Payments
Life Only Annuity Payments
Life Settlement Payments
Medical Malpractice Settlement
Not Settled cases Pre-Settlement
Personal Injury Settlement
Product Liability Settlement
Private Mortgage Notes
Real Estate Notes
Self Owned Annuity Payments
Sell Annuity Payments
Sell Real Estate Notes
Sell Structured Settlement
Sell Senior Settlement Payments
Workers Compensation Payments