Is A Structured Settlement the Right Choice for You?
Mark Benedict Young
These days many settlements are made in the structured format. In case you have been injured in a road accident, you might need money from your settlement immediately to pay your medical bills, and would rather have it now than wait for a large sum of money that may come to you later.
Before deciding whether you should opt for a structured settlement, be sure to weigh the pros and cons first. A structured settlement may be a good idea if you need money for recurring medical expenses on due to your injury or expect prolonged physical therapy in order to recuperate.
The payment of a structured settlement usually comes from interest accruing on a purchased annuity. Although the terms of the settlement are quite loose, it is a binding one. Once you have signed the agreement, no more changes will be allowed at this point. Should you feel the need later to revise or make changes to the agreement because of some unforeseen expenses, you will need an attorney to change the terms of your agreement. You cannot use your structured settlement to obtain a new loan either.
Because of the investment potential, there are companies that will buy the rights to your structured settlement for a lump sum pf cash. Usually, what you will receive will be the current day value of your settlement amount but excluding the invested sum. Different states have different rules regarding structured settlements and there are also some states where the amount received from such settlements are taxable.
If you are going to see an attorney to assist you in negotiating a structured settlement, it's very important that you consider your situation and requirements carefully. Some things worth considering before you make a decision are:
What are the advantages and disadvantages of the program? Does the lawyer have a track record in negotiating structured settlements? Which is best for your own situation, a structured settlement or a lump sum of money? Will there be any tax benefit if you opt for a structured settlement? Will you get adequate money on time to cover all your expenses? How is it going to be in case of future contingencies, and if your requirement for money increases? Is it possible to change the terms of the structured settlement later? Can you decide later to change the program and opt for a lump sum payment?
It is wise to have a list of questions ready before you speak to a lawyer. The questions should be specific and relevant to your situation. Once you meet the lawyer, you can already gauge whether he/she is a good choice in handling your structured settlement. You should be certain that your lawyer has your best interest at heart, and if you are not sure, get a second opinion or consult with your own financial planner.
With all your questions completely answered, you are now ready to make an informed decision. Remember that this is a very critical decision to make, as it will affect your future and the future of your family. So be sure to enter into an agreement only if you are completely certain that you have made the right decision.
Interested in structured settlements? Check out (
http://www.allaboutstructuredsettlements.com/)
www.allaboutstructuredsettlements.com and read more about the (
http://allaboutstructuredsettlements.com/settlement-funds-taxable.php) advantages of structured settlements and other related subjects.
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