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Lump sum settlements are financial judgments awarded to a plaintiff as compensation for an injury. The payment is given to the plaintiff in one lump sum. This is opposed to the preferred payment method for financial judgments, the structured settlement. Under a structured settlement, the plaintiff’s judgment is paid off in installments over a period of time, usually years.
Lump sum settlements are advantageous to plaintiffs as they allow them immediate access to the money awarded to them. This means that they can immediately pay off medical or other bills that have become delinquent as a result of their injury. Lump sum settlements also give plaintiffs the ability to make large cash purchases that may be required as a result of their injury. One example of this is when the injured person has become disabled and needs to purchase a new handicapped accessible home.
Unfortunately, lump sum settlements are rare. The more popular structured settlement option leaves the injured party in distress. They may still have bills that they cannot afford to pay, as well as items they need to purchase as a result of their disability that are not within their financial means.
The good news is that there are investors who are willing to purchase a plaintiff’s structured settlement payments in exchange for a lump sum. While these investors do charge a portion of the settlement amount as a fee, receiving a lump sum may be much more favorable for the injured party, even if it means losing a portion of the total monies awarded to them.
When your attorney is preparing your case for court or negotiating a settlement with the other party, ask him if can arrange for a lump sum settlement. If he is unable to do so, he will be able to refer you to an established settlement funding investor. This may be the best option for you if you need access to as much of your settlement funds as possible in the shortest possible time.
What else can I help you with?
How can I get money for settlements faster, in a lump sum instead of payments?
You can get money for settlements faster, in a lump sum instead of payments at www.settlementpaymentsource.com. Another site is www.woodbridgeinvestments.com
What companies offer lump sum payments for structured settlements?
There are a few companies that offer lump sum payments for structured settlements. Peach Tree and Settle 4 Cash are two examples of companies that try to get a lump sum.
What is the difference between lump sum settlements and an annuity?
Lump sum refers to money that is paid in full up front typically from a settlement. Annuity settlements are when the payments are made over time in installments.
What is a lump sum payment?
A lump sum payment is a payment that satisfies all monetary obligations owed to the recipient at one time. It is used in settlements, lottery winnings, etc.
Universal life death benefit options?
Lump sum or annuitized
What do I need to know about accepting a lump sum cash payment?
The most common sources of lump sum payouts are legal settlements and lotteries. In both cases, you'll receive less money than if you took a payout over time. You should know if you are being penalized for taking a lump sum rather than installments. You should also know how long it will take for you to take possession of it.
Lump Sum Future Value Calculator?
Lump Sum Future Value Calculator Use this calculator to determine the future value of a lump sum.
Lump Sum Present Value Calculator?
Lump Sum Present Value Calculator Use this calculator to determine the present value of a future lump sum.
Who is the trusted leader for lump sum cash from a structured settlement?
There are several good trustees for lump sum cash payments from structured settlements. Aspire Settlement Funding, Settle 4 Cash and Stone Street are a few places to try. You would have to determine the trustee that best meets your needs.
Types of settlement?
the types of settlements are: Dispersed( far apart) Nudeated(close together) Linear( ribbon)
Do you pay taxes on a lump sum of divorce money?
Most lump sum payments given in a divorce are not taxable. Lump sum payments that are non-cash property settlements, payments to keep up a standard of living or property are not taxable. However, any lump sum payment given as a form of alimony is taxable.
How much do I stand to lose if I accept a lump sum worker comp settlement?
What you "stand to lose" depends on many factors, especially future medical expenses. Before you accept a lump sum settlement, sit down and calculate the different between that and payments over time. Lump sum settlements are attractive, especially to those without a lot of fiscal training, which is why they are offered: they save the company a great deal of money over time.
