During the past, and in many instances today, if a personal injury case is settled, the plaintiff often receives an one-time very large sum settlement payment from the defendant. After the plaintiff receives this payment, it really is up to her or him what to do with the amount of money, what things to spend the funds on, if anything, and how much, if any, to save for future security and opportunities. This kind of budgeting can be hard. One should anticipate future expenses as well as map out just what objectives they?ll wish to obtain at some point along with the costs of reaching those goals.
One of the purposes of a structured settlement, in part, is to avoid the issues that might develop with budgeting errors. As the term suggests, a structured settlement is a ?settlement? and for that reason usually arises, not by a court order or ruling, but through an contract; i.e., settlement involving the parties to the lawsuit. It?s in essence, a legal contract involving the parties to the lawsuit whereby the plaintiff consents to dismissing his or her pending court action in exchange for the defendant agreeing to make a fixed set of future payments. By and large, you agree to accept the structure and any cash at the time of the settlement and release the Defendant and its Insurer from all past or future claims. In most cases, and not all, the court is not a part of the negotiation or approval of the ultimate settlement.
Regularly, as soon as the structured settlement is agreed to, an annuity is acquired to finance the obligation. The Defendant, its insurance company or even a related entity, will often be the one responsible to obtain the annuity. While in many situations, you won?t need to be the legal owner of the annuity funding the structured settlement, the settlement arrangement will require the that owner has the annuity payments sent directly to you.
While the laws in most state vary as also does the language in the underlying settlement and annuity contract, you may be entitled to receive the structured payments, but not be the named owner of the annuity. Because of this, there could be technical issues in the event you want to sell all or part of your structured settlement payments.
Nevertheless, due to relatively recent legislation, you will discover companies these days that can provide a lump sum of cash for your structured settlement payments. In light of the specialized and legal knowledge needed to effectuate this kind of transaction to provide you a lump sum payment of cash, if you elect to sell your payments, it?s critical you end up picking a business with plenty of experience in this area. Their knowledge will make sure the entire process of selling your structured settlement goes smoothly so you receive the cash fairly quickly.
Contact New Leaf Structured Settlements before you sign any document relating to the sale of your structured settlement. Get an instate free quote without any obligation or pressure. Contact us at 1-800-517-7671 or NewLeafStructuredSettlements.com
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