Ways to control a structured settlement
Winning a settlement can be a rewarding experience as you finally get some semblance of justice for what you went through. To a degree, the same can be said for any monetary award or annuities that you receive. However, what can be annoying and frustrating is receiving your cash in structured settlements. Sure, you may not need all the money at once and if this is the case, then you can sensibly use only what you receive on a periodic basis. But if there are bills to be paid or other such responsibilities, then a structured settlement can pose a problem. However, there are a few ways that you can follow which can help you take control including to sell a structured settlement.
* First off, talk to your medical specialist and you lawyer before you agree to settle to anything. If you’ve suffered injuries and are negotiating a settlement, you may require a lump sum to be paid for any equipment, operations, or expensive medication you need to cover. Though your state may not allow you to receive a lump sum, if you really need the money then you might be able to come to an agreement whereby you will be paid a lump amount on the first period followed by smaller payments over time.
* Talk to your tax advisor about how best to minimize taxes owed on your settlement.
* Since settlements are annuities, you can also liquidate them (sell structured settlement) to receive a full payment. However, such a decision could mean that you forego your tax shelter and end up paying the IRS while you still pay your medical bills.
* Though the thought of receiving a lump sum is attractive, receiving it over a period of time could be the better option. This is especially true if you aren’t that good at handling money. And if you need to pay medical bills over a certain period, it’s advised that you agree to a structured settlement.
Like all things that have to do with money, deciding on a settlement needs careful thought. As such, it is always advisable that you approach lawyers, tax advisers and doctors to help you make a decision.
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