At Patriot Settlement Resources we take pride in helping people obtain a large lump sum of cash now for their future payments from a Structured Settlement, Annuity or Lottery award.
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A structured settlement is a method of paying damages to an injured party over a period of time when a lawsuit is settled. It usually results from personal injury cases such as automobile accidents, medical malpractice, wrongful death or product liability. In those cases, the parties involved often agree to have damages paid monthly or annually over a period of years rather than with one lump-sum. The damages are usually funded in the form of an annuity contract issued by an insurance company.
Structured settlement annuities differ from other types of annuity payments in that structured settlement payments are not subject to income tax. This factor lessens the complications involved in buying them and makes them more accessible to private funding sources.
The annuity itself is not assignable by the annuitant because he or she does not own it. It is typically owned by a subsidiary of the life insurance company that issued the annuity. What the annuitant has is the "right to receive the payments" under the settlement. That right is personal property which can be assigned.
Most states have enacted transfer statutes requiring either a court order and/or certain disclosures before a structured settlement recipient can sell their annuity payments.
Patriot Settlement Resources offers a lump sum cash option for structured settlement recipients whose financial situation requires them to access future payments now. We structure our transactions based on the financial needs of each individual client. We can purchase all or part of your remaining payments for a lump sum payout.
Call 1-866-506-CASH (2274) for a free, no-obligation quote. You may also submit your information using our request a quote form.
What is a Structured Settlement ?
Structured Settlements are an innovative method of compensating injury victims. Endorsed by the US Congress since 1982, a structured settlement is a completely voluntary agreement between the injured victim and the defendant. Under a structured settlement, an injured victim doesn't receive compensation for his or her injuries in one lump sum. They will receive a stream of tax-free payments tailored to meet future medical expenses and basic living needs. A structured settlement may be agreed to privately (for example, in a pre-trial settlement) or it may be required by a court order, which often happens in judgments involving minors and incapacitated adults. (Source: National Structured Settlement Trade Association Website, 6/1/2002)
Why do a Structured Settlement ?
A structured settlement’s most important advantage is security. The structured settlement provides long term payments that are guaranteed by a life insurance company.
Another advantage that a structured settlement provides is its tax-free position. All payments made via a structured settlement are nontaxable by federal tax guidelines (IRS Section 104(a)(2). 100% of every payment is tax exempt.
The structured settlement allows the injured party to tailor payments over his or her life. There is no need to meet periodically with an investment or tax advisor. Payments are decided during the initial settlement and then are directed to the injured victim. It gives peace of mind, security, and confidence over the long term.