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What is a
Structured Settlement? Structured
settlements are structured cash payments through an annuity system
that is established to compensate injury victims for their losses.
Structured settlements are the other alternative payment system to a lump
sum cash settlement and are set up to provide payments to you over time.
Structured settlements received special legislative treatment by the U.S.
Congress in 1982, as a way to make large settlements more agreeable to the payor,
who does not need to come up with a large lump sum, yet still provide certain
protection to victims. Return
When are
Structured Settlements Used?
Structured settlements are designed for
many other types of cases though including:
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Severe injury where there is long-term
treatment requirements, where future medical costs will necessarily be
incurred, and to meet living and family expenses. |
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Worker’s compensation cases where the
injured party may not be able to work or at least work to the earning
capacity that they would otherwise have enjoyed. |
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Permanent or temporary disabilities that
will take extensive recovery time |
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Wrongful death cases where a surviving
family will need a regular income to replace that of the lost
spouse/parent |
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Guardianship cases where there are minor children or another person who
is judged to be incompetent such as a person with psychological,
emotional, or mental handicaps Return |
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Structured settlements provide a
cash flow that is completely tax liability free. |
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There
is added security in receiving smaller amounts of cash over time.
Many seniors are the target of greedy people and a large pot of
available cash can make them an even more attractive target to conmen,
and subject them to permanent loss of assets if they are grossly
mismanaged by a trustee. |
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Recipient
doesn’t have to worry about investment strategies or not adequately
planning for the future.
Those who do not receive structured settlements must
concern themselves with making sure that they do not overspend from an
account that looks like it should last forever, and subject the entire
award to financial risk. |
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Structured Settlements
are often arrived at without the risk and time loss of going to court.
For many reasons, defendants who believe they could have
liability will make an offer of a structured settlement to
minimize their costs.
Few people relish the idea of going to court including
defendants because while there is the potential for coming out ahead,
there is also the potential for coming out much farther behind than a
negotiated structured settlement would give them.
In most cases, settling a case with structured
settlements can minimize the risk to both sides. In most cases
where the structured settlement is made out of court, attorney
fees will be much cheaper than if litigation is required. If your
attorney does not need to go to court, you can see their fees be reduced
by as much as 8% of the total settlement. On a one million dollar
settlement, that means about $80,000 more for you.
Return |
The Periodic Payment
Settlement Act. In
1982, Congress passed The Periodic Payment Settlement Act of 1982 (Public
Law 97-473), which legally recognized structured settlement cases in
physical injury cases, also encouraged people to use them by granting them
tax-free status.
This
act allowed people to financially benefit and protect themselves from the
hazards of a lump sum settlement, and gave courts the ability to make such
an award where there was a realistic potential for abuse of the proceeds
of a lawsuit. Return
Structured Settlement
Payments.
When a structured settlement agreement is reached on the benefits to be
included, the defendant will agree to fund a stream of cash to the
victim. The structured settlement payment obligation is then legally
assigned to an independent third party that has experience in this area,
usually a life insurance company.
In theory, the victim is protected from further legal complications
or financial hardship of the defendant. The structured settlement is
generally set up as some sort of an annuity that makes payments according
to the prescribed and agreed upon schedule. Return
Can
I Use My Structured Settlement as Loan Collateral?
Generally, the answer is no.
The laws regarding structural settlement are designed to protect
you from abuse, and the ability to use the structured settlement as
collateral would void that intended purpose.
The payments however, can be claimed as a form of income so that if
you want to buy a house, the payments represent the same financial ability
that a take home paycheck of the same amount would provide.
Return
Do I Get Interest
on My Structured Settlement?
No.
The interest is a part of your structured settlement agreement and
is therefore, tax-free.
You do not then get interest on top of that.
Return
Is Turning My Cash Flow Payments Into One Lump Sum like Renegotiating the
Structured Settlement?
On the surface, they may sound the same, but
they are not.
The structured settlement may not be paid out in any different
fashion than initially agreed upon.
What you are doing is selling the payments to RAM Funding.
We would receive the payments just as you would have over time.
What RAM Funding does for you is to buy the
payments for a percentage of the the gross proceeds.
Return
Why do I
get only a Percentage of the Gross Proceeds? When we buy
your structured settlement, RAM
Funding is
taking risks that are attached to inflation, and we also need to make
money in the transaction. As a result, the amount that you receive
will be less than the face value of the structured settlement.
Return
The Truth about
Structured Settlements.
They are easy for lawyers, and save the defendant a huge amount of cash
flow. Benefits that "protect" you from yourself are a fine ruse.
The fact is, a lump sum of cash would, in most cases, benefit the victim
at the expense of the defendant. You certainly have the ability to
manage your own money, invest it wisely, and increase the amount.
Return
Have you won your
settlement, but want or need to collect a lump sum of cash NOW instead of
receiving those small periodic payments? Sell your Structured Settlement
Buyer to RAM Funding, nationwide buyer of structured settlements and YOU
can collect your structured settlement annuity in one LUMP SUM of CASH!
Ready for a FREE quote for your Structured Settlement?
Click Here!
Or call cash for structured settlement buyers at:
1-800-397-3893
Call Now!
Let RAM Funding give you CASH for your Structured
Settlement. We are a Nationwide buyer of Structured Settlements.
Take a moment to fill out our FREE Sell Your Structured Settlement Payment
quote form:
Cash for Structured Settlement Quote
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