How much do I get and how much do they get
A court awards a structured settlement to plaintiff's who have won lawsuits involving auto accidents, malpractice (both legal and medical), product liabilities and workman's compensation. The settlement is paid out to the plaintiff in payments that can be monthly, quarterly or annual.
The reasons for accepting a structured settlement annuity are sometimes based on the plaintiff's situation at the time of the award. Many need long-term care because of an injury from the accident that led to the lawsuit. Some people are unable to work because of the injuries. Some people are disabled for just a short period of time while some are permanently disabled. Widows who were dependent on their spouses for support may need that constant monthly cash flow. But often the plaintiff has no control over the court’s decision as to how the payments will be administered and must live with the decision.
Many people do not need monthly payments and would benefit most from receiving the settlement in one lump some. These people want more control over how their settlement is spent. They many want to invest the money elsewhere or perhaps start a business. They may need a down payment for a new home or they may want to pay for a new car after their old one breaks down beyond repair. They could be facing unexpected medical expenses unrelated to the injury sustained in the accident. Or maybe they are having a tough time figuring out how to send a daughter or son to college.
That is when plaintiffs receiving payments from a structured settlement annuity look for ways to cash in the annuity. They may need all the payments liquidated to a lump sum or they may need just a few of the payments to settle their immediate financial needs.
Plaintiffs usually begin their research on cashing in their structured settlement annuity online. Most companies offer free quotes to people selling their structured settlement annuity. Most of these companies have very detailed websites outlining how to cash in a structured settlement annuity.
Plaintiffs must also know the laws in their state, since requirements for cashing their structured settlement annuity vary from state to state. Usually the broker handling the sale can inform the plaintiff of these laws.
Once a plaintiff has chosen a company to handle the sale of the structured settlement annuity, they must seek court approval. The court will review the sale and make an order approving the sale.
Plaintiff’s can receive their money at any time between a few weeks to 90 days. The company that handled the sale of the structured settlement annuity can tell the plaintiff how soon they will receive the settlement.
Once the plaintiff receives the money, they are in control of how it is spent. The money can provide relief to a family burdened with medical or credit card debt or that is wondering how to send a son or daughter to college. It can provide financial freedom to an entrepreneur who begins his or her own business or give someone the opportunity to invest the money wisely.
