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December 21, 2010

How Long Does a Structured Settlement Have to Be Active Before You Can Withdraw Monies?

The question, which appeared on Yahoo this morning, suggests that an annuitant has a newly minted "wet ink" structured settlement who is looking for cash.  One important lesson to learned however, is that that one cannot "withdraw monies" from a structured settlement because a structured settlement is not a deposit acount  (like you would have at your bank). It is a contract to pay money in set amounts ( or amounts based on a set formuia) on set dates.

When you agree to a structured settlement, the right to receive payments is your asset. Most of the time keeping your structured settlement in place is the best decision.  But there are time where selling structured settlement payments is the only option. If you have a structured settlement, you need cash now, and have exhausted other sources for cash, then you must first find a buyer of structured settlement payment rights.

You can simply put the words "structured settlements" into a Google or Yahoo search on the Internet and come up with a plethora of choices. Online structured settlement factoring exchanges make this job easier since you invite companies to bid on what you have to sell rather than the time consuming and emotionally draining chore of calling each one separately.  Moreoever, why leave yourself vulnerable to be "owned", like a wildebeest crossing the Mara River facing a gauntlet of crocodiles when you can take matters into your own hands?

Tommy_cat_fish_lg_clr "Catsh" now pusher stalking its prey.

Another lesson to be learned...

if you are nearing settlement on your case make sure that you  are working with a settlement planner who discusses your or your loved one's overall needs, including short term needs. It makes abolsutely no financial sense to enter into a structured settlement and within a month or two after, sell all or a portion of your structured settlement payment rights.

Once you find a buyer, the process for what is known a "structured settlement factoring transaction" begins. In order to obtain liquiduty from a structured settlement one has to obtain Court approval. This process is designed to protect you from being taken advantage of. It works for the most part, in my opinion. It does not help you to get the best rate however. It only helps to determine if the rate is reasonable.  The problem is if you are selling a long or deferred payment stream, a few percentage points differnce is discount rate could mean tens of thousands of dollars dif ference. 


Posted at 11:20 AM in A structured settlement isn't, Structured Settlement Factoring, Structured Settlement Factoring Auction Sites, Structured Settlement Payment Rights, Structured Settlement Transfers, Withdrawals from Structured Settlements |

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Comments

Mary

Right, one must be wise about doing an annuity transfer. The court process of selling your structured settlement is the exact same no matter which company you choose so get the absolute most you can for your annuity.There are brokers who specialize in finding the best offers for anyone wishing to access money from their annuity.

Posted by: Mary | December 21, 2010 at 04:39 PM

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Guide to Structured Settlements 2023

  • What is a Structured Settlement? What You Need to Know
    Structured settlements and what you need to know about them including a helpful introductory video featuring 2023 A.M. Best Client Recommended Structured Settlement Expert and Registered Settlement Planner John Darer® of 4structures.com® LLC
  • How Do Structured Settlements Work? How Structured Settlements Work
    How structured settlements work, including 4structures.com LLC's super helpful structured settlement flow chart/diagram showing how structured settlements fit in on the spectrum of settlement planning solutions.
  • Rated Ages and Structured Settlement Cost
    Rated Ages for Structured Settlement Annuities present advantages to all parties. Shift the mortality risk to a life insurance company whose business it it is to assess mortality risk to price its life insurance and annuities. Rated ages boost your structured settlement annuity benefit per premium dollar, or your yield on lifetime payments. Rated ages help to reduce the cost of funding a Medicare Set Aside arrangement where a Structured MSA, is being used { WCMSA LMSA or NFMSA].
  • Structured Settlement Annuity Companies 2023
    Which life insurance companies issue structured settlement annuities going into 2023? A list of current structured annuity issuers, the location of their home offices and their financial ratings from A.M. Best, Moodys, Fitch, Standard & Poors and/or other Tier1 NAIC ratings, with links to their websites and other useful information.
  • Treasury Funded Structured Settlements
    Treasury Funded Structured Settlements are a settlement option for the most conservative using the OTHER permissible qualified funding asset under IRC 130(d), United States Treasury Bonds in addition to, or instead of, structured settlement annuities. Treasury Funded Structured Settlements can also be used to fund installment sales, also known as structured sales and other non qualified structured settlements.
  • Compare Structured Settlement IRR to Other Settlement Alternatives
    Use the Taxable Equivalent Yield chart to help compare the Internal Rate of Return (IRR) of a structured settlement to other alternative or complementary investments. Need help with the chart? Call 4structures.com® LLC at 888-325-8640
  • Structured Settlement Payments | Types of Structured Settlements
    Ways You Can Structure Your Settlement Payments. With a structured settlement you can have more than one type of payment in a single contract. Different types of structured settlement payments can be customized and combined to meet your needs on a stand-alone basis, or in conjunction with other financial products. Diversify your structured settlement, if you wish, by funding with more than one annuity issuer, with treasury funded structured settlements, index linked structured settlement payments and market based structured .
  • Structured Attorney Fees for Tax Deferral for Contingency Fees
    Structured attorney fees is a financial strategy that offers a unique way to defer taxes for lawyers and law firms. Lawyers CAN structure their legal fees even if the plaintiff doesn't structure their settlement. There are multiple ways to structure your attorney fees, such as the an index linked structured settlement where payments are adjusted based on upside changes in the S&P 500 with no downside and a cap of 5%. Trial Lawyers may also use a special deferred pay/deferred compensation arrangement, if market based returns returns are desired with no cap. Plan NOW for year end! Put structured attorney fee expert John Darer® on your settlement planning team.
  • Structured Settlement Annuity Company Customer Service Phone Numbers
    Receiving structured settlement payments from your own structured settlement or inherited structured settlement? You'll like this huge time saver. Click the title for a link to a comprehensive list of customer service telephone numbers that includes both current AND former structured settlement annuity issuers and reinsurers. If you have simple bank or beneficiary changes, or if the insurance company that issued the structured annuity has merged, sold or spun off its block of structured annuity business (e.g. Aviva, Allstate, Transamerica, AEGON, GE Capital, Liberty, CNA, Confederation Life) or changed its name and you're trying to track them down, here you go! The list is regularly updated. Last updated September 14, 2023
  • Structured Settlement Quote Lock-Ins | What You Need To Know
    What does a Structured Settlement Lock-In Mean? How do plaintiffs, defendants and insurers benefit from a structured settlement quote lock in when finalizing a settlement? How does the defendant/insurer/court benefit from using a structured settlement lock-in? Where to be careful when using structured settlement lock ins.
  • What Are Structured Settlement Annuities?
    Structured settlement annuities are annuities that can provide one or more customized annuity payment streams in a single contract. Read about structured settlement annuities here.
  • History of Structured Settlements
    Tracing the roots of structured settlements history from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as a core personal injury settlement planning tool to the present day.
  • What Are Market Based Structured Settlements?
    Market based structured settlements are an alternative or supplementary structured settlement solution for the plaintiff, attorney or law firm that: 1. Can afford to take some market risk 2. Have discretionary settlement dollars. Claimants and attorneys alike may find that market-based structured settlements provide the opportunity to receive tax-free income, or tax-deferred income, while enjoying growth potential.
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    iStructure is an innovative game changing fixed index structured settlement annuity for plaintiffs or attorneys. with an intermediate to long term horizon

Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
    Qualified Settlement Funds | What You Need to Know
  • Firmwide Qualified Settlement Funds Debunked
    Firmwide qualified settlement funds have been heavily promoted to trial lawyers, but have been debunked in a detailed analysis in a July 2022 legal opinion a tax partner at the law firm of Faegre Drinker Biddle & Reath, LLP. Trial lawyers and firms who have established Firmwide QSFs or coinsidering establishing a Firmwide QSF should read the analysis as part of their evaluation.

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