structured settlement annuity payments - If you have been the victim of negligent behavior or an accident, you may wish to learn more about structured settlements options. They can be a very effective way to negotiate your claim settlement to ensure that you use it as best as possible. However, if you are like many people, you probably have never even heard of a structured settlements.
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| structured settlement annuity payments |
As a victim, instead of receiving a taxable lump sum cash settlement, the money is invested in a manner that provides a stream of income. This stream of cashflow can be structured in a wide variety of ways.
One of options for payments available is called life annuities. This is an income stream that will replace the victim's normal income for the remainder of his or her life. An infrequent smaller lump sum payment is another type of payment you may receive.structured settlement annuity payments
Often you will hear that these types of settlements offer a poorer rate of return than standard investments. As a victim, if you were to invest the settlement on your own, you could receive a higher rate of return. While quite often the the percentage is indeed lower, the reality is that structured settlements are either tax exempt or tax deferred, making the true rate of return much higher.
Receiving a large lump sum settlement, could put you into a higher tax bracket. With well-managed structured settlements, you can put your settlement generated funds in a tax exempt or tax deferred portfolio, and only be taxed on your regular income.structured settlement annuity payments
These settlements can also help you avoid having to go to trial. Generally they benefit both parties and going to trial is an expense that both parties can avoid. A good settlement service or broker can use this as leverage to help you receive a more fair settlement.
There are lawyers and attorneys that specialize in structured settlements who can determine your eligibility. They will work closely with you to customize a settlement agreement that fits your needs, now and in the future. They will coordinate your settlement with various health agencies including Medicaid and private health providers. They can even evaluate and determine the viability of structured settlement counter proposals from the opposing counsel. You can find many of these settlement experts either in your local Yellow Pages, or by searching the Internet. structured settlement annuity payments