Selling a Structured Settlement

Selling a structured settlement. Should you consider selling a structured settlement? If you have been injured in a car accident, you may have been able to get a structured settlement. With this arrangement, you will get a certain amount of money each year for a number of years. The amount of money per year and the number of years varies from case to case. This can help you in the future, but what do you do if you need money now? This problem led many people to consider a sale of structured settlement.

Sale of structured settlement has obvious advantages. You get a lump sum of cash now, rather than waiting years to collect your money. Many people find such a lump sum or one-time payment necessary to pay bills, avoid eviction or foreclosure, or just live a little more comfortable today. But there are also disadvantages of the sale which must be considered before you decide to make the sale.

The biggest disadvantage of selling your settlement is the payment of a lump sum will not equal the same amount that you would receive in total during the years of the colony. It's just like playing the lottery, or when you choose the "money" option, you get a smaller amount that the jackpot is real. Taking a lump sum payment may mean that you only get half of the total amount that you would have gotten over time, or even less.

Selling a structured settlement can also lead to potential tax issues. Annual payments from a structured settlement are generally not taxable. But if you take a lump sum payment for the sale of your payment, you may end up paying taxes on it, which will reduce the amount you get more.

The final potential disadvantage to think about your future financial security. If you need to rely on structured settlement payments at any time in the future, selling a structured settlement is not for you. Once you take the lump sum, you will get more money from your payment. Although it costs a little money, if you are considering selling your structured settlement for cash, the best thing to do is talk to a lawyer. He or she can help you decide if taking the lump sum is the best for you and your family and help you understand exactly what you get and what you give up taking one. Some buyers settlement provide free legal advice as part of their basic service. This can be a great option for those who are not interested or able to spend money on legal fees.