By Vanessa Richter on September 19 2018 11:42:22
Without a structured settlement, many victims had to rely on a third party. In a lot of cases, the money ran out quickly. This is for several reasons. The victim may have had poor spending habits. Faced with a large sum of money, they were not thinking about the future but instead were thinking of fun ways to spend a lot of money they never had before. Not long after that, they find the money is gone and they still have to live their life.
For anyone who has any type of guardianship, a structured settlement is also a perfect solution. For example, if someone dies as a result of an accident through no fault of his own, a settlement may be awarded. However, the settlement is going to the victim`s family as opposed to the victim. The money may be used for funeral expenses and for the care of the surviving family, especially if the victim was the provider of the family`s income. Spouses and children are generally the beneficiaries of a structured settlement. Minor children can especially take advantage of the benefits of a structured settlement. Their housing, food and other every day expenses will be ensured. Plus, very often their education and college expenses will also be taken care of so they can lead a productive life even without the assistance of their loved one.
Consider the legalities before selling a structured settlement, as some might not have the option of being sold earlier for a lump sum. Also, when the negotiations take place, some contracts might put up the restriction on sale of the structured settlement. Since structured settlements help in tax savings, it might make the person liable to pay tax after the settlement is sold. Also, if the settlement is being sold to raise cash for an emergency, it is possible that the insurance company might make an offer considerably lower than market value.
Structured settlements ensure periodic payments of a lump sum, and the lump sum can be released by selling a part or whole of the structured settlement. However, when a structured settlement is sold for a lump sum, the amount received is usually considerable less than the market value or lower than what would be received in monthly installments, but they do provide the option for sale in case of financial necessity.