Structured Settlement Investment - Is It More Profitable

Very often a person, who has received the settlement is more than willing to sell it to get the cash lump sum of money

. This option is wise, if the person will need a lump sum of money right away and cannot wait for the periodic payments.

1. The Structured Settlement Investment Is An Easy Solution.

When we think the paying party, the structured settlement investment is a very easy way to solve the problem. The many experts also think, that the whole system protects the receiving party from the potential borrowers and from wasting the money.

2. The Seller And The Buyer Are Needed, And Of Course The Court Acceptance.

If the seller will sell the structured settlement investment to the buyer, he may think, that now it is done. However, this kind of a secret deal is illegal, if the court has not accepted it. When the court handles the petition, the fiscal need and position of the seller will be also checked.

3. The Reputation Of The Buyer.

If the court has to accept the seller, it will also check the reputation of the buyer. From these two points you will understand that the whole structured settlement investment process is heavily controlled by the court and regulated by the laws. Just one detail, the secret and hidden fees are also prohibited.

4. Why The Structured Settlements Are Hit Products?

Well, the main reason has a lot to do with the taxes. Since the structured settlement investments are tax free both on the federal and state levels, this forms an advantage, which beats the benefits from most of the other investment instruments. Remember, that you have to pay taxes from the lump sum payment.

5. Other Features.

The companies, which have to pay structured settlements can polish their books by transferring the agreements to the third parties. By doing this, the transfer will indispensable need to conform to section 130 of the Internal Revenue Code.

As you see from this short article, the structured settlement investment is a profitable investment instrument owing to the tax free benefit. This advantage is honestly big, if you just think, how much you have to pay taxes from, for instance, the common stocks.

Another big plus is, that the payments comes for sure at a fixed dates. This is a great benefit too, because it makes the financial planning easy and the recipient just cannot lose all the money.

by: Juhani Tontti

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