Avoid Fast Cash Structured Settlements
by Doug Smith

Where large cash settlements are concerned, judgment awards have become a well known part of the legal system in the U.S. You read about structured settlements and hear about them on TV.

If you are considering a structured settlement, there are some important things to consider. It may be a good idea to take some time out and educate yourself with how the process works. It may be wise to retain an attorney, before you proceed with a settlement. This can help you with possible hassles in the future when considering fast cash settlements or a structured settlement.

What Is The Best Option?

Here is what you must decide with a large settlement: are you better off taking a large lump sum now, or should you consider alternatives to the immediate large pay out? This is not easy to answer. In some cases the client may not be proficient with money management. A large payout can attract people who may want to take advantage of the financially unsophisticated settlement recipient.



This is where a structured settlement really helps. In 1982, Congress passed legislation to assist people receiving large payments and the entities who take care of them. Congress added a federal tax code provision providing an alternative to large cash payments. This alternative is called a structured settlement. This gives a large award recipient a better way to manage their financial future.

Retain An Experienced Attorney To Avoid Scams

Hire an experienced lawyer with a structured settlement. The lawyer will explain the details. When a person gets a large pay out, they might be approached with a sales pitch of getting lots of cash fast or cash right now. This may not be the best alternative for many people for long term financial security.

Some people get taken advantage of when they settle for a cash pay out that can sometimes be only HALF the value of the total future payments. A structured settlement can be a wise decision for tax reasons alone. A good lawyer can help you avoid the lure of quick cash from companies who target recipients of large payout settlements. If your lawyer can't explain the pros and cons of a fast cash payout, get another lawyer.



Is It Tax Free?

To create a structured settlement, an annuity is purchased and held by an independent third party insurance company. This neutral third party makes payments to the individual to whom they have been awarded. This is why a structured settlement can be completely tax free.

Hire An Attorney First

There are many important factors associated with a structured settlement. This is not offered as legal advice. Rather, it is offered as simple guidelines to give you some ideas before proceeding with a structured settlement.

Be sure to retain a attorney that specializes in structured settlements. Remember - you can afford him now.

This article is ©2006 by Doug Smith. Got a structured settlement and don't know whether to keep it or sell it? Want to know how to get the most money out of it? Browse our library of free articles and tips on structured settlements. Visit StructuredSettlements.LoansForAnyCredit.com. This article may be freely reprinted as long as this copyright notice remains intact, the article is unchanged, and all hyperlinks remain active and clickable.