Absolutely. You have the option to sell some or all of your structured settlement or annuity payments. If you would like to cash out your future payments through a lump sum buyout of your structured settlement, we can assist you in the process with a fast and reliable quote. After all, it’s your money.
For many years, plaintiffs who won compensatory damages from a defendant received large lump-sum settlements. While the payouts helped recipients pay for medical expenses and other costs related to the legal settlement, many lacked the financial know-how required to skillfully manage large awards.
The Periodic Payment Settlement Act , passed by Congress in 1982, encouraged the use of structured settlements in physical injury cases, and provided legal incentives for their use by amending the federal tax code. It also stated that payments be offered in installments over time and exempt from federal, state and local income taxes.
A plaintiff wins a large jury award or settles a claim for a large sum, and the amount is structured into monthly or annual payments over time. Those payments help recipient pay for medical expenses or other costs.
A common way to compensate the family of someone whose death was the subject of a wrongful death claim.
Pays workers who get injured on the job while they recover from their injuries.
Minors receiving financial awards as the result of accident or personal injury lawsuits may get funds paid through structured settlements.
In the past, many adults acting as parents or guardians of injured children had unlimited discretionary use of a minor’s settlement funds. They spent the money irresponsibly on purchases unrelated to their court-prescribed purposes. Timed payouts were developed as an alternative to ensure that minors had money for essential long-term necessities, like food, clothing and shelter, and for any continuing medical care.
Because of this danger of inappropriately using settlement funds, the process for selling the structured settlements of minors is highly regulated, and these payments are not often approved for transfer.
While the federal law safeguards the rights of structured settlement recipients throughout the country, each state has its own laws that vary slightly from those approved by Congress.
Enacted shortly after victims of the 9/11 disaster started receiving financial awards to compensate them and their families. It ensures they receive counseling and instruction before selling their payments.
President Ronald Reagan signed the act in 1982, providing the use of structured settlements to seriously injured victims and their families for long-term, tax-free financial security.