Four Structured Settlement Questions and Answers

Tax Act

If you have recently come into a large sum of money, you may want to think about setting up a structured settlement instead of receiving a lump sum. While this option isn’t for everyone, it can be beneficial when it comes to budgeting, and paying less tax on your earnings.

Here is a four-question guide to structured settlements.

1. What is a structured settlement?

A structured settlement is when you receive periodic payments for the money awarded in a lawsuit that you have won. It is “structured” because you are agreeing to receive a set amount of that money each month, week or year, and it is a “settlement” because you typically received the money as the result of a settled lawsuit.

2. What if I want/need a lump sum?

Although structured settlement payments have a lot of benefits, it’s also entirely possible to receive a lump sum. One way to do this is to sell lottery payments or other kinds of earnings to a financial assistance company. In exchange for a portion of your earnings, you can get the large chunk of money that you need very quickly.

This can be a good option if you have a lot of debt to pay off, college tuition that needs to be paid before the semester begins or medical bills that add up with interest if they’re put off.

3. What if I need money before my lawsuit case ends?

If you don’t want to take a lump sum, but still need money before your lawsuit comes to an official close, you can often get pre settlement funding from financial assistance institutions.

Some reasons that you may need funding ahead of time include urgent medical bills, car repair in the event of an accident and more. Sometimes, you just can’t wait for the money, and thus, a cash amount is necessary. It’s possible to get between $1,000 and $30,000 in advance. You simply borrow from financial funding companies beforehand and give them a portion of your reward once it’s received.

4. Are there benefits of receiving an annuity payment over a lump sum?

Yes, there are benefits to receiving annuity payments. One of these is tax-related. If you get a lump sum and invest it all at once, you will be taxed on the dividends of your investment. On the other hand, if you receive payments and use them for expenses and purchases, they become tax-free.

It’s also much easier for some people to budget when they have a stream of equal-sum payments coming in periodically. This can help you plan your financial life much easier.

If you are interested in learning about how you can convert a lump sum to structured settlement payments, or vice versa, research online now.


There are many things Brian enjoys writing about, but one of his favorites is finances. If you’d like more information regarding Sell Lottery Payments, please visit

A Reverse Mortgage Loan Is a Major Decision That Might Involve Family

Tax Act

Did you ever get the feeling that maybe you should rethink your position just before a deal is closed, then later regret not acting on the feeling?  If you have, you experienced what people in sales refer to as a “moment of objective clarity.”  You are referred to as a mook once you leave and your money is securely in their hands.  A mook is a person who subconsciously knows that they are being taken for a ride but cannot pinpoint why and therefore sign the deal and leave happy on the outside and wondering on the inside.  Being a mook is caused by a lack of complete research on the buyer’s part and can be avoided.

Prepare a Contrasting List

If you are considering a reverse mortgage loan, you might want to stop and take a good long look at the reverse mortgages pros and cons before you proceed.  Pros and cons refers to a list that you could make that has the positive and negative sides to each point of anything, whether it be the advantages or reverse mortgage disadvantages.  This type of life changing decision warrants a good long look.

Getting What We Wish For

A reverse mortgage is an important step in your retired life that could be the answer to a prayer.  We all wish that we will have a comfortable retirement t look forward to but sometimes, you get what you wish for and that could come back and bite you or your heirs if you do not have a firm understanding of the reverse mortgages disadvantages.  Understanding what is good about a reverse mortgage is easy.

Avoid Being a Mook

The Internet is the perfect place to start your search into a reverse mortgages pros and cons.  Have a pencil and paper at the ready when you conduct your search and dust off that printer.  Knowing all the facts is what it is all about.  Discuss your pros and cons list with any family that has a stake in your decision and be especially prepared with the reverse mortgage disadvantages.  You know that they will want to know about that.  Don’t be a mook.  Do your research.

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