You should carefully weigh the advantages and disadvantages before opting for a structured settlement. If you need money because you have recurring medical expenses on account of your injury or require prolonged physical therapy in order to recuperate, then a structured settlement might be appropriate.
The payment in case of a structured settlement is usually made from interest accruing on a purchased annuity. A structured settlement is binding so once the agreement has been signed, you cannot change your mind about it. If you wish to modify the agreement later because of some unforeseen expenses, you need to go to an attorney to change the terms of your agreement. You cannot use your structured settlement to obtain a new loan either.
Some companies will purchase the rights to your structured settlement for a lump sum of cash, and they will usually do it for the investment potential. What they will pay will be the current day value of your settlement amount, but but not including the invested sum. Rules do vary in different states regarding structured settlements. The amount received from structured settlements is taxable in some states.
If you are going to see an attorney to assist you in negotiating a structured settlement, it's very important that you consider your situation and requirements carefully. Some things worth considering before you make a decision are:
What are the good and bad side of the program? Is the lawyer experienced enough in negotiating structured settlements? Given your own unique situation, is a structured settlement the most suitable or is it getting a lump sum of money? Will there be any tax benefit if you decide to go for a structured settlement? Will the money you need be adequate and on time to cover all your expenses? What about in case of future contingencies, and increased money requirements? Can you change the terms of the structured settlement later? Is it possible to change the program and opt for a lump sum payment at a later date?
Don't forget to prepare a list of specific questions before you speak to a lawyer. Meeting with the lawyer will help you deicde whether he/she is the right person to handle the negotiation of your structured settlement. You should have no doubt in your mind that your lawyer has your best interest at heart, and if you do have doubts, get a second opinion or consult with your own financial planner.
With all your questions completely answered, you are now ready to make an informed decision. Remember that this is a very critical decision to make, as it will affect your future and the future of your family. So be sure to enter into an agreement only if you are completely certain that you have made the right decision.
The payment in case of a structured settlement is usually made from interest accruing on a purchased annuity. A structured settlement is binding so once the agreement has been signed, you cannot change your mind about it. If you wish to modify the agreement later because of some unforeseen expenses, you need to go to an attorney to change the terms of your agreement. You cannot use your structured settlement to obtain a new loan either.
Some companies will purchase the rights to your structured settlement for a lump sum of cash, and they will usually do it for the investment potential. What they will pay will be the current day value of your settlement amount, but but not including the invested sum. Rules do vary in different states regarding structured settlements. The amount received from structured settlements is taxable in some states.
If you are going to see an attorney to assist you in negotiating a structured settlement, it's very important that you consider your situation and requirements carefully. Some things worth considering before you make a decision are:
What are the good and bad side of the program? Is the lawyer experienced enough in negotiating structured settlements? Given your own unique situation, is a structured settlement the most suitable or is it getting a lump sum of money? Will there be any tax benefit if you decide to go for a structured settlement? Will the money you need be adequate and on time to cover all your expenses? What about in case of future contingencies, and increased money requirements? Can you change the terms of the structured settlement later? Is it possible to change the program and opt for a lump sum payment at a later date?
Don't forget to prepare a list of specific questions before you speak to a lawyer. Meeting with the lawyer will help you deicde whether he/she is the right person to handle the negotiation of your structured settlement. You should have no doubt in your mind that your lawyer has your best interest at heart, and if you do have doubts, get a second opinion or consult with your own financial planner.
With all your questions completely answered, you are now ready to make an informed decision. Remember that this is a very critical decision to make, as it will affect your future and the future of your family. So be sure to enter into an agreement only if you are completely certain that you have made the right decision.
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