Structured Settlements Information Site Map

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Structured Settlement ? Guaranteed Income for those with Disabilities
Up until twenty years ago, anyone who won a lawsuit as a result of a claim involving worker's compensation, wrongful death or accident had to accept a lump sum payment as their compensation. The payment would be intended to be invested, with the beneficiary living off of the proceeds for as long as their recovery was expected to take. In many cases, this type of settlement works fine, but in other cases, the results are a disaster.It is difficult enough for someone who has been through the trauma of an accident or illness to have to adjust to a new lifestyle without having to also become an expert in the art of financial investing. If you have been active all of your life and you suddenly find yourself in a wheelchair and having to handle assets of several hundred thousand dollars or more, you could be overwhelmed. You could hire someone to handle the investments for you as well as the tax issues, but what if the person you hired wasn't trustworthy? What if you hired a greedy relative who took all of the money? What if you hired someone incompetent? These problems, and statistics that show that people who receive large sums as compensation for accident, injury, or wrongful death often spend all of their money in a short period of time, led to Congressional action in 1982 that amended the Federal tax code to allow for structured settlements. A structured settlement is simply an agreement between the responsible party and the injured party that the payments will be made over time, rather than in a lump sum. The two parties reach an agreement, the party responsible for payment purchases an annuity, usually through an insurance company, and the injured party will receive steady income over a period of years or even a lifetime.The payments are adjusted for inflation; the sum of all of the payments will be greater than if the amount had been paid as a lump sum. Because the payments are purchased up front as an annuity, the paying party actually pays less than the sum of the payments, as well. The result is generally a win-win situation, with the injured party receiving a steady stream of income over as long a period of time as necessary, while the paying party does not have to worry about making monthly or annual payments. While a structured settlement is not the ideal payment arrangement in all situations where a long term injury settlement occurs, it does work well in many cases where a lump sum payout might be undesirable.

Structured Settlements Are Like Ants
Ants are powerful creatures. The powerful ant legs are able to lift 20 times their body weight, and run the equivalent of a man running as fast as a racehorse. Structured Settlements are strong agreements that turn an agreement to pay a plaintiff into an ironclad guaranteed structured award.

Cash For Structured Settlements - The Smart Way
For most people when they buy a house it is considered their life's largest deal. In some cases of structured settlements the compensation and financial considerations for a persons life duration and the total present value of the settlement can reach few millions of dollars. Therefore it is strongly advised to use professional services like annuity consultant and a lawyer specialized in this field in order for you to avoid painful costly mistakes. Here are some tips:

Offshore Asset Protection Trusts for US Citizens
When it comes to discussing offshore anything and US citizens - from offshore trusts to investments, from offshore banking to company incorporation - it's important to note the following facts: -

Structured Settlements Offer Advantages over Lump-Sum Payments
A structured settlement, which offers injury victims cash payments through a long-term annuity as compensation for their damages and medical expenses, offer a number of possible advantages over payment in a lump sum. While the lump sum payment is the traditional way for responsible parties to pay accident claims, the structured settlement offers payments over the span of an agreed-upon period of time. This length of time may span from several years up to the remainder of the life of the injured party, depending on the severity of the accident, the amount of money involved, and the agreement reached between the two parties. Depending on the specific circumstances of the case, structured settlements can have numerous advantages over a lump-sum payment: They are tax free. Thanks to a 1982 change in the Federal tax code, payments on a structured settlement are free of state and Federal taxes. The paying party funds the settlement through the purchase of an annuity which earns the interest to fund the continued payments. This is not the case with a lump-sum payment, which the injured party must invest themselves. Any interest earned on those investments are taxable. They are potentially safer. Most people who come into a large sum of money suddenly find that they are quite popular with long-lost relatives, unscrupulous purveyors of investment schemes, and good, old-fashioned thieves. By receiving payments in substantially smaller amounts, the beneficiaries of a structured settlement have far fewer worries about having others take advantage of them, which could leave them both poor and without adequate medical care. They are simply less trouble. It's difficult enough to adjust to changes in your life if you are seriously injured without having to also take the new responsibility of investing and managing a large sum of money. Not only must you invest the money, but you must invest it wisely, knowing that it must continue to fund your living and/or health care expenses. The regular payments of a structured settlement, along with their tax-free status, simplify day to day living considerably.While they are not ideal for everyone, particularly those who are experienced investors or those who need a large sum of money at once for immediate medical expenses or the purchase of a home, structured settlements can offer a simpler, safer payment solution for many people who are victims of an accident or injury.

What is a Structured Settlement
A Structured Settlement is an agreement between a personal injury victim ( a Plaintiff ) and an Insurance company ( the Defendant )to compensate the Plaintiff by the defendant with long term periodicpayments instead of a single cash lump sum.

The Target Capital Structure
Firms can choose whatever mix of debt and equity they desire to finance their assets, subject to the willingness of investors to provide such funds. And, as we shall see, there exist many different mixes of debt and equity, or capital structures - in some firms, such as Chrysler Corporation, debt accounts for more than 70 percent of the financing, while other firms, such as Microsoft, have little or no debt.

The Cash Now Question
If you have ever been in a bind for cash you know the stress, the weight of not being able to pay your bills. In these desperate times, desperate measures are often taken. Expensive loans, overused credit cards, and a snowball of events quickly complicate your financial position. Once the collectors begin their relentless pursuit of your sanity, the road to financial prosperity seems a million miles away. On the scene arrives your hero, the "Cash Now" guy.

When Should You Not Cash Out Your Annuity?
You should not cash out your annuity when it's not in your best interest.Here are 3 reasons it might not be in your best interest; it's too soon, you don't have a good enough reason, it will cost you too much. Every day someone cashes out their annuity or settlement when it might not have been in their best interest. It's an easy mistake to make when the call of money and burden of financial stress is weighing heavily on you. But read carefully and maybe you can avoid digging the hole deeper.

A Structured Lawsuit Settlement Seemed Like a Good Idea at One Time
You are receiving payments spread out over months, years, even a lifetime. It's great when the money arrives but the payments are often too small or too spread out to really satisfy your needs. Careful research could yield more of your cash faster. There are some half dozen financial institutions with the knowledge and resources to effectively advance your future lawsuit payments.While the rewards are obvious, the risks are not so easily understood. Once you identify an annuity buyout funding source, consult your attorney for an explanation of the legal requirements.

Keeping the Lawsuit End in Mind
2 key points to stay focused on, as you are settling your lawsuit; a quick and fair settlement and consideration for current and future needs. The process of settling a lawsuit can be a tedious and mysterious event. Relying on your busy attorney to keep you informed can be an exercise in frustration. The entire process can seem as slow as molasses. Compounding the pain could be the financial and emotional difficulties caused by the source of the lawsuit itself.

Investing in Structured Settlements
Often some derelict will be awarded some huge amount of money from a noble company due to a run away jury in a Kangaroo Court. Since many times the company paying the money out agrees on a structured over time settlement, the plaintiff of course is a lowly human and has lots of desires for riches and he has little if any cranial capacity to understand the enormous gift the courts have grated him as our nation turns in to a socialist quagmire of re-distributing wealth to those who do not deserve it. Yes a few have been damaged and do deserve something, but usually not. If you disagree with that, you are wrong and I am right.

The Cost of Not Having Money
The self-esteem factor of not having enough money is underestimated. You know what I mean don't you? The agony of financially struggling and the ecstasy of financial abundance are dramatically different moments in a person's life. And I for one would choose the abundance over the struggling any day.

What is a Trust and what are the Benefits?
Trusts are becoming a popular way to structure business and personal affairs. If you are considering using a trust in any way, you should be clear on the legal obligations and the relationships involved. Always make sure you obtain proper advice before setting up a trust. Most lawyers are proficient in this area, but it is still advisable to talk to a legal advisor specialising in this area.

If This Describes You, Dont Cash out Your Annuity
There are companies that purchase future payments. Personal injury settlements are often structured to pay out over time. As are a portion of lottery wins, paid via an annuity over a period of 20 or more years. There are companies, under the authority of state and federal regulations, that will accelerate future payments and pay out a lump sum of cash now.

Individual Voluntary Arrangements. IVA
What is an IVA?

Options for Lawsuit Settlement Winners Receiving Periodic Payments
On January 22,2002, President George W. Bush signed into law a bill that protects individuals who must sell their structured settlement payments to meet unplanned financial needs. H.R.2884Victims of Terrorism Tax Relief Act of 2001 (Signed by the President January 22,2002))

Annuity Transfer - What Are the Risks
Many people who know in the back of their minds that they got thepossibility to transform a monthly payment or annuity long termpayments into a big lump sum and by that to relieve sometemporarily financial problems, or need to buy a new car or a houseor help their children and so forth are tempted to exercise thisprocess into action.Although it is a very natural feeling and sometimes even a real lifeneed or deep inner quest for power and control, it is not in their bestfinancial interest to say the least.

Making Backwards Choices
I was reading this past week about a woman who lost 170 lbs in 9 months by eating backwards. She had breakfast for dinner and dinner for breakfast. She lost the weight without leaning on a typical diet plan. Her result, losing 170lbs, has lasted ten years. It's not so much the weight loss that caught my attention, but the fact that she took responsibility for change in her life.

A Revolutionary Fundraising Opportunity -- Life Settlements
Amid fundraisers' growing concerns about the current charitable giving climate, dampened by the erratic stock market and shaky economy, a new fundraising opportunity has emerged ? Life Settlements.

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