A growing number of companies offer "fast cash" or "cash payment" for structured settlements. You should try to make sure that the company you choose to work with is on sound financial footing, such that you are not at risk for default on your promised cash payment after you sign over your annuities. You should also make sure that your company is competent and ethical, and won't try to come back at you if they later have problems obtaining your settlement payments after you are cashed out.

Not all plaintiffs have the luxury of choosing whether part or all of their settlement will be structured. For example, a number of states require that certain future damages awards be paid in installments as opposed to in a lump sum, or permit a defendant to petition the court to pay future damages in installments. However, where a plaintiff can choose between a structured settlement or lump sum payment, care should be taken to make the correct choice.

Benefits of a structured settlement include possible tax avoidance, preservation of settlement funds for future care and future needs, and coordination of settlement proceeds with other benefits or public assistance.

Disadvantages of a structured settlement include possibly not having the available funds to make necessary purchases, or even desirable discretionary purchases, high commissions on the purchase of annuities, and a low yield as compared to other investment options. Also, if payments are equal, each payment will actually be reduced in real value as compared to the prior payment due to the effect of inflation.

Factors which should be taken into consideration before selling a structured settlement include:

Legal Restrictions - Due to the nature of some settlements, there may be legal restrictions on their sale.

Contractual Restrictions - Some structured settlements and annuities are set up in a manner which makes it difficult to impossible to sell them.

Tax Considerations - A structured settlement may offer considerable tax savings to an injured plaintiff, whereas a cash payment may subject the plaintiff to a significant, immediate tax liability.

Low Offers - Sometimes a buyer of structured settlements will make an unreasonably low offer for the settlement.]

www.expertlaw.com

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