If you have ever gone through an extended trial or won a lottery where you were awarded payment, you are likely familiar with the concept of structured settlement payments. A structured settlement payment simply means that rather than getting your money all at once, the debtor is required to pay what you are owed in installments rather than in one lump sum. In this way, the structured settlements can be filtered out over time, coming at regular intervals.
The way a structured settlements works is basically two parties agree upon a specific plan to pay an eventual amount in small increments over time. Over this fixed span of the elapsed time, the individual will repay a certain amount or award a sum equal to the original sum arrived at by both parties.
In a structured settlement there are likely many documents assigned to the settlement case including an annuity policy, a court order, an annuity application and a qualified assignment as well as an agreement between the parties. The payments for the considered settlement can vary from all manner of lump sums and installments depending on the agreement between the affected parties.
Both parties choose the length of time that the structured settlements will span, as well as the individual policies and regulations governing the structured plan. As structured settlements are paid out over the years, the parties are made privy to the inner workings of the arrangement, so as best to affect the repayment or initial payment of the settlement.
Structured settlement payments are tax-free by nature and cannot be counted towards overall income and are guaranteed by contracts. This contract guarantee ensures that the settlement payee will be guaranteed a settlement payment at regular intervals from the payee. It is important to understand all the issues involving settlements before you choose such a payment plan. There are many state and federal laws that cover the institution of the structured settlement payment plan that allows for the repayment and record keeping throughout the life of a settlement payment plan. Following these state and federal laws can be a difficult matter as it may require additional study and preparation to prepare for.
Before any structured settlement can take place, a disclosure statement must be made ready for the perusal of the customer ahead of time, generally at least three and as many as fourteen days before consummation. This early notice gives the customer plenty of time to decide exactly how to go about initiating the structured settlement payment plan. Users are advised to locate and retain an attorney before attempting to structure a settlement plan.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Are Roth IRAs Insured?
By: Libertybelle | 29-09-2008
Are Roth IRAs FDIC insured? If not, guess its too late... :-(
Who mines Monazite Metals
By: REK | 27-09-2008
Who mines Monazite Metals
Joint Owner Won't Pay Their Portion of Mortgage
By: rockhound98 | 23-09-2008
Own a property jointly and now the parnter in the property is refusing to pay thier portion of the mortgage. What actions can I take?
What can i expect from my current high yield ...
By: beaglebuck | 23-09-2008
What can i expect from my current high yield bonds?
Notifiying the irs
By: jonesy | 20-09-2008
How can a person notify the irs if an individual has not filed their personal taxes since the year of 1995 ,without having their social security number?
MTGLO Investors, LLC
By: o8crabs | 17-09-2008
MTGLO Investors, LLC- Wondering if anybody knows a contact number for this investor, an address or phone number would be great. Both would be better!!! Thank You
Q&A Powered by:
Latest Finance Articles
Understanding Debt Consolidation Loans
By: Richard Greenwood | 07/10/2008
It can be all too easy to end up in debt and especially during the current times of financial uncertainty you may find yourself unable to make repayments. Consolidating your debt can make your debts easier to manage and lower your interest charges meaning you become debt free faster.
Credit Card Comparison
By: Richard Greenwood | 07/10/2008
Credit card offers are everywhere and all claim to out do each other. How do you cut through the marketing talk and understand the key features you need to compare to make an informed decision. Find out with this informative article on credit card comparison.
Shopping For Auto Insurance
By: Brenda Williams | 07/10/2008
When you get your license for the first time before you begin driving you need to get car insurance as it's mandatory to have car insurance while driving. Car insurance can be rather expensive, especially for new drivers which is why you'll need to ensure that you're getting the best...
Taking 100% Responsibility - the Prerequisite for Creating Money & Marriage Success
By: Leslie Cunningham | 07/10/2008
It's a simple concept, to refrain from blaming and complaining, and yet it's a challenge to change a habit, especially one that everyone else has. Like sticking to your diet, when everyone else around you is enjoying chocolate cake. Keep reading and you'll find out how this relates to your marriage and finances. Then I'll share some action steps to help you become 100% responsible for your life.
Retirement Income Investing and Your Portfolio
By: Steve Selengut | 07/10/2008
Brokerage firm monthly statements are designed to promote either fear or greed, depending on the current market environment. Nowhere on your statement can you find numbers that report your net investment, your total working capital, or your true asset allocation. Current and projected income numbers are given little attention
Buy to Let Investors Get a Boost
By: Parmdeep Vadesha | 06/10/2008
Buy to let UK investors are in a prime position to take advantage of a new government plan to spur property market activity. The scheme aims to permit property buyers to buy properties worth up to
How to Buy a Repossessed Property for Below Market Value
By: Parmdeep Vadesha | 06/10/2008
Buying a repossessed property is what matters for investors who are keen on reaping high profits. But even with the advantages it poses, there are certain aspects you need to be aware of before you start on the task of acquiring your next property cheaply.
Brits Should Ensure They Have the Cheapest Energy Supplier
By: Abbi Rouse | 06/10/2008
With energy prices escalating steadily, consumers could knock considerable amounts off their utility bills by switching from their areas default supplier.
Finance 
