Severe workplace or road accidents cripple victims for the rest of their life
. Coping with such tragedies and major life-altering events become even more stressful with medical bills and future financial uncertainty looming ahead. In such situations they get a huge relief today in the form of structured settlements which is the policy of splitting the lump sum compensation among even and regular payments over a long period to the victim.
The structured settlement is an agreement between the plaintiff, the defendant and an outside broker with structured payouts paid to the victim over a period of time. The basic factor differentiating this compensation amount is that it can be structured to minimize tax burdens. It is risky for the beneficiary when the whole amount is paid out in one huge chunk giving room for unplanned spending. Structured settlement enables the victim to meet his medical needs. The fear of spending away the settlement award instantly also is done away in case of structured settlements.
While structured settlements have its benefits, many victims may prefer lump sum payments. Such people have the option of selling their structured settlements to the discerning buyer. The legal guidelines on structured settlement changes when you change state borders. Also different are the insurance company terms on these. Many states have prohibited selling or buying structured settlements. Some settlements may include clauses to cease payment when the beneficiary changes to ensure non sale of the settlement.
When seeking a buyer, take time out to scout around for a good deal. These annuity payments are sought after by investment companies. The attraction for the buyer is the continuous and legally guaranteed annuities whereas the seller is looking for a huge instant payout in these deals. Conduct a thorough background check on the buying company to ensure that you are paid the promised amount. Con deals are rampant with overnight fictitious companies disappearing once the settlement has been transferred to their name without making any payment. Always ensure a good attorney represents you who will be able to help you handle such transactions.
Purchasing a settlement deal also needs equal prudence as buyers can also get saddled with invalid deals after payment has been made. Always prefer a court decision while closing settlement deals to avoid any legal mishaps. Buying and selling structured settlements can be of help to the parties involved but must include careful and prudent study to avoid being ripped off.