If you are the recipient of a structured settlement, you may be in a position where you are receiving payments, but you don’t really know a lot about how your settlement is structured.
A structured settlement is a financial contract following a lawsuit in your favor that provides for a single future payment or for multiple periodic payments.
In most cases, you may have been involved in an accident or suffered a loss due to negligence on somebody else’s part. A legal process will have followed that acknowledged your loss and awarded you a sum of money to compensate you.
Settlements are often negotiated between legal experts to ensure that you are compensated over a period of time. When a settlement is reached in your favor, you will receive payments on a pre-determined schedule, decided during the negotiation phase. Your payments may be monthly, annually, or at some pre-determined point in the future, such as when you reach 18 years old, or retire, for example.
The reason that settlements are structured in this way is to ensure that your financial needs are catered for at the time when the claim is settled.
However, you are not able to restructure your settlement at a later time if your financial needs change.
You do, however, have the option to sell some or all of your payments to a third party in return for a lump sum.
If you are interested in exploring your options regarding your structured settlement or annuity, contact us at Rising Capital.
