Structured Settlements in Your Area - Get Professional Guidance
If you are set to receive a structured settlement or have any questions about this topic in relation to a personal injury or other civil case, Legacy Enhancement can offer the guidance you need. We provide professional and personalized structured settlement services to disabled individuals and the families of persons with special needs.
Call (888) 988-5503 or contact us online today to learn more about structured settlements.
WHAT IS A STRUCTURED SETTLEMENT?
When you win or settle a personal injury case, there are different ways you can receive your award. You have the choice to either receive the money in one lump-sum payment, or you can choose to receive the money in payments over time.
A structured settlement is a great option for you if you wish to receive the payments from your personal injury case award over a period of time. The series of payments is referred to as a structured settlement.
Key Details and Payment Options for Structured Settlements
There are many elements to consider when deciding how to receive your award, including the following:
- Your tax liability
- How you plan to spend the money
- Whether you need help managing a large amount of money
If you choose to receive your award in a structured settlement, you’ll obtain periodic payments over a set number of years. For instance, if you win $600,000, you may receive payments of $60,000 every August for ten years.
With a structured settlement, you have the following options for receiving your payments:
- Substantial initial payment. Let’s say you’ve been out of work for a while and your bills are starting to add up. You’re able to set up your structured settlement to administer a hefty first payment so you can pay for your bills, pay off your mortgage, or buy big-ticket items you need, such as a car. The lesser succeeding payments can then provide an alternative for lost income.
- Supplementary payments for exceptional costs. You can designate your settlement to provide your annual income with added amounts designed to pay for exceptional costs, such as college tuition.
- Higher payments over time. You may set up your settlement to increase your payments over the years. In this model, your payments will start somewhat low and get higher as time passes.
- Lower payments over time. You may set up your settlement to decrease your payments over the years. In this model, your payments will start higher and reduce over time.
- Postponed payments. You may choose to postpone your settlement payments until you reach retirement.
WHAT ARE THE BENEFITS OF A STRUCTURED SETTLEMENT?
A structured settlement may offer various advantages:
- Payments from a structured settlement do not count for income tax purposes.
- Income from a structured settlement will not affect eligibility for government benefits.
- Structured settlements offer significant flexibility in terms of payment amounts and duration.
- If the recipient of a structured settlement dies, a designated heir can receive any remaining payments, tax-free.
HOW LONG CAN YOU RECEIVE STRUCTURED SETTLEMENT PAYMENTS?
The amount and duration of structured settlement payments will vary on a case to case basis. At times, payments may increase or be supplemented by larger payouts.
A qualified assignee will be designated to structure such payments and to purchase an annuity from an insurance company. Once the annuity is set, a lump sum may be set aside to fund a trust or cover attorney fees.
Integrating Structured Settlements with Special Needs Trusts
A structured settlement may be ideally suited as part or all the funding for a special needs trust for a disabled beneficiary, because of its tax benefits, ability to provide stable income, and guarantees from leading insurance companies.
Using a structured settlement to fund a special needs trust can also keep administration costs lower, as only the assets in the trust will be subject to fees.
Contact Legacy Enhancement for Your Structured Settlement Needs
Learn more about protecting funds from a structured settlement and your options in establishing a special needs trust by involving Legacy Enhancement.
From structured settlement management to special needs trust administration, we can tailor our services to fit your needs and goals. Protecting your assets and providing a better life for you and your loved ones are our primary goals.
Call Legacy Enhancement Trust today at (888) 988-5503 or reach out to us online to learn how we may assist you!