Annuity Transfers, Ltd. Releases Part Three of Structured Settlement Education ...

Richardson, TX (PRWEB) May 30, 2011

Annuity Transfers, Ltd. recently released the third of a four part series of articles designed to educate sellers of structured settlements. The latest article is titled “Finding Value in the Legal Process”. In it, Annuity Transfers Ltd.’s founder, Bob Thompson, provides insight into what is required legally to sell a structured settlement and what that means to the process and the deal for sellers of structured settlements.

Mr. Thompson explains that a seller of a structured settlement should always request nothing less than what the market will bear and that sellers should remind purchasers that the better the terms of the deal, the more likely the judge is to approve the deal. However he goes on to caution readers that no one involved in the structured settlement transfer process should assume anything. The entire article is available online at http://www.annuitytransfers.com/blog/industry-news/selling-structured-settlement-payments-part-3-finding-value-in-the-legal-process /.

In an interview for this release Mr. Thompson noted “...sellers must understand what is required legally when selling structured settlement payments and how the legal framework for selling payments actually protects them.”

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Sell Structured Settlements : Finance

Sell Structured Settlements

Sometimes if a claimant is a case for a large sum of money, the defendant, the lawyer for the plaintiff, or consult a financial planner in cooperation with the settlement, the payment of the settlement in installments over time rather than an amount. Where arrangements are paid in this way is a structured settlement. Often purchasing one or more annuities will create the structured settlement, which is to guarantee the future payments.

A structured solution may provide for the payment in almost all the plans of the parties to choose. So the system can be paid in annual installments for several years, or it can be paid in periodic lump sums every few years.

Benefits of A Structured Settlement

An important advantage of a structured settlement is tax evasion. With the right set-up, a structured settlement can significantly reduce the fiscal obligations of the plaintiff as a result of the settlement and, in some cases, is exempt from tax.

A structured settlement can protect a plaintiff who disappeared settlement funds when they are needed to pay for the future care or needs. Sometimes it can help protect a plaintiff from ones – some people are just not good with money, or can’t say no to family members who want to share the wealth, and even a large settlement can be quickly exhausted. Minors can benefit from a structured settlement also, as a rule for certain expenditure during their youth, an additional fee to pay for college or other educational expenses, and then one or more payments at adult age. A wounded person on the term, special needs may benefit from regular flat-rate amounts that medical equipment or modified vehicles to buy.

In some situations, the better for a severely disabled claimant to a special needs trust, instead of entering into a lump sum or structured settlement. Any plaintiff, who has received or expected Medicaid or other public assistance, or the guardian or curator received in entering a settlement on behalf of a Department with a disability, should consult with a financial planner about their situation a disability to choose a particular option or system structure.

Possible disadvantages of Structured Settlements

Some people who enter into structured settlements feel trapped by the periodic payments. Maybe they want a new house or other expensive post, but do not have the means, because they can’t borrow against future payments under their settlement.

Structured settlements and periodic payment judgments

Structured settlements

Congressional Record

Special Needs Trusts 2008 Edition

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