Learn about Annuities and Payments!
In many cases a lawsuit will be settled with an annuity which is also called a structured settlement. Instead of a lump sum payout, an arrangement is made to pay smaller amounts over time, either to lessen the financial burden on the paying entity, or to ensure that the plaintiff in a case is guaranteed an income over a period of time. In some cases benefits of these settlements can be tax avoidance, planning for injured or minor parties, or just to keep money for future needs. Many times people will even opt for annuities because they will be assured of income when other sources fail.
Other
annuity payments are best known from prizes, contests, lotteries, or
insurance payouts. Insurance companies use annuity funds to make
investments, and therefore it is possible for ordinary people to buy these
annuities as an investment. Depending on the annuity, there can be problems,
as it is not always possible to borrow from the annuity's future value. In
this case, people may be seeking a lump sum payment from brokers who
specialize in converting small payments into available funds.
Notes and Special Information
Special note: always consult with an attorney or trusted advisor before accepting any cash settlement. Make sure that you will be able to pay for future expenses or the taxes that may result from your transaction. You may decide that keeping your settlement unchanged is the best long-term financial strategy. No part of this site should be considered financial or legal advice, as this website is intended to be for informational purposes only. We do not endorse or recommend any service, person, or attorney mentioned on this site or its advertising..