Structured Settlement Need Cash Now: What is a Structured settlement?

Structured Settlement Need Cash Now: What is a Structured settlement?

Structured Settlement Need Cash Now

Have you ever received a structured settlement or an annuity? You may find yourself in need of cash now, rather than waiting for the installment payments to come in. Don’t worry, you’re not alone.

The need for is increasing. People often receive structured settlement payments due to personal injury cases, lottery winnings, or other settlement awards. These settlement payments range from a few hundreds of dollars to millions of dollars. Regardless of the amount, a structured settlement often requires you to wait months or even decades to receive the full amount.

That’s why those who receive structured settlement payments often look for ways to liquidate their settlement funds and get the cash they need now. In this article, we’ll discuss the options and solutions that are available to those who need cash now, instead of waiting for structured settlement payments.

Understanding Structured Settlements

Typically, structured settlements are created in civil cases when one party (the payee) is awarded damages from another party (the payer) to cover the cost of injury or damages.

The payer often offers to resolve the dispute by making a one-time payment (either directly or through insurance) or a series of installment payments over the course of months or years to be paid to the payee.

For example, accidents, medical malpractice, and wrongful death lawsuits often result in structured payments. Other common structured settlement payments are from lottery winnings, workers’ compensation claims, and divorces.

Options for Getting Cash Now

When you have structured settlement payments coming in installments, you may find yourself in need of cash now, rather than waiting for those payments to arrive. Therefore, those in this situation often turn to legal options, such as structured settlement transfers, to access their money now.

Structured Settlement Transfers

A structured settlement transfer is the legal sale of future payments from a structured settlement. When you transfer a structured settlement, you are selling your future payments for cash now. Those payments are then guaranteed by an insurance company for their full value.

Using a structured settlement transfer, you can receive cash now, rather than waiting for your future payments to come. For example, if you receive monthly payments of $1,000 over 10 years and you decide to transfer this payment, you could get $6,000 today instead of waiting 10 years to receive the full amount.

The amount transferred is taxable, and the transfer may affect your eligibility for social and medical services, such as Medicaid and Supplemental Security Income. It is important to seek the advice of a qualified financial advisor and an attorney before transferring your payments to make sure it is the right choice for you.

Secondary Market Purchaser

A secondary market purchaser is another legal option for those who need cash now for their structured settlement payments. Secondary market purchasers are companies that purchase structured settlement payments from people who want to sell their payments in exchange for cash now.

These buyers buy the rights to the payments from the legal owners and then receive the payments on the agreed upon future dates. The buyer pays the owner a discounted amount for their payments, depending on the amount and timing of the payments.

Frequently Asked Questions

Q: How can I get cash from my structured settlement payments?

A: You can get cash from your structured settlement payments by transferring your payment(s) or selling to a secondary market purchaser.

Q: What is a structured settlement transfer?

A: A structured settlement transfer is the legal sale of future payments from a structured settlement in exchange for cash now. These payments are then guaranteed by an insurance company for their full value.

Q: What is a secondary market purchaser?

A: A secondary market purchaser is a company that buys the rights to structured settlement payments. They then receive the payments on the agreed upon future dates. The buyer pays the owner a discounted amount for their payments, depending on the amount and timing of the payments.

Conclusion

For those who receive structured settlement payments and need cash now, legal options such as structured settlement transfers, or selling to a secondary market purchaser, can provide them with the money they need, without waiting for payments to come.

It is important to seek the advice of a qualified financial advisor and an attorney before transferring or selling structured settlement payments, to ensure it is the right choice for you.

You can find more information about structured settlements and transfers at the National Structured Settlements Trade Association website here.