- September 2013
- Posted By JohnnyG
- 0 Comments
You may be thinking, ‘I want to sell my structured settlement,’ but you may not know how to go about it. While this articles aim at helping you find the best company to sell part or all of your structured settlement, it is also important to understand what a structured settlement is. While there are many different types of structured settlements, many come from three basic sources. One is the accident settlement. This is where you or a loved one was involved in some kind of accident which was settled either in or out of court. These settlements could involve injury or even death. Upon settlement, you are paid a certain amount of money, either monthly or annually, for either a fixed period of time, or the rest of your life.
The second type structured settlement is actually paid out lottery winnings. While some people decide that they want a lump sum payment, others choose payments instead. Usually these payments are paid out on an annual basis, but in some lotteries or sweepstakes, they can also be paid monthly or quarterly. Many people choose the annuity payments because choosing a lump sum payment usually gives you a lot less money. Let’s say you win a million dollars in a sweepstakes or lottery. You have to take into consideration taxes on winnings, then after that if you take a lump sum payment, you may only get half or less of what’s left of your winnings.
The third type of structured settlement is some kind of inheritance, where a relative leaves you a bunch of money in trust. You may have to wait until you are twenty-one to start getting your money, and this money may not be a lot, divided out over time. In many cases people getting inheritance money normally can’t just get a lump sum.
There are many reasons why people want to sell part or all of their structured settlement. They may have thought they were in a good position when they choose it, and find that they’re situation has changed. Maybe they have added bills due to the accident, or are finding that the settlement payments they’re getting are simply not enough to pay everyday expenses. Some people may want capital to start a business, or buy a house, or even go on that dream vacation.
You see commercials all the time in the media about turning a structured settlement into cash. There are a number of different companies, all trying to get your structured settlement. Each one tells you that you can get more money from them than all the other companies, is this true? Which company offers the best deal? What should you know when it comes to getting a structured settlement cashed out?
For starters it is important to understand that payments for a structured settlements are usually tax free. However, once you cash out of one, whether part or in whole, that money becomes taxable, and you may have to pay state and federal taxes on this money immediately. These companies want to make the most out of your settlement, meaning that you are going to end up with much less than you would with the full settlement. If you have a settlement for a hundred thousand dollars let’s say, and want to cash out all of it, after the company takes their percentage and fees, you may only end up with half or less than the full amount. Not all companies are like this, but you really have to be careful and research your options.
If you are saying, ‘I want to sell my structured settlement,’ It is important that you get as many quotes as possible. It is also important to learn as much as you can about selling your structured settlement as well. Instead of having to search the internet, wasting a lot of time, there is one website you can turn to for all your settlement needs. My Structured Settlement Cash is a great resource you can use, and they have some wonderful tips and helpful information.