Structured Settlement

What is a Structured Settlement?
A structured settlement may arise from winning a personal injury or wrongful death lawsuit. A plaintiff may agree to receive payments periodically over time rather than just receiving a lump sum from the defendant. The two parties will agree to the amount and schedule of payments. The structured settlement or “annuity” may be paid in many different ways. For example, it may pay monthly, annually or payments may be received several years apart. Rather than wait for these periodic payments to arrive, you may want to sell your structured settlement or annuity and receive money right away. Each state located within the United States has its own individual laws outlining the process of selling structured settlements. Fairfield Funding can facilitate this process with ease.

Advantages of Structured Settlements
When you are considering whether or not to receive a lump some of cash from your personal injury case make sure you know the advantages and disadvantages. Tax avoidance is one huge advantage. Structured settlements are not subject to federal or state taxes.

Furthermore, being paid through an annuitized income stream may help you manage your finances over time. Plus, and this is unfortunate, friends and family come out of nowhere if they know you’re receiving a large lump sum of money.

Disadvantages of Structured Settlements
Once you’ve agreed to receive an annuitized settlement, the insurance company paying that settlement will not be flexible in paying you. The structure is the structure! This inflexibility could hinder your ability to make large purchase such as a house or car, or make a significant investment. Plus, banks don’t allow you to use structured settlements as collateral for loans. A purchase of structured settlements may help you get around this inflexibility.