Reasons For Choosing Cash For Structured Settlements

Reasons For Choosing Cash For Structured Settlements – While many people have lifestyles that work fine with structured settlements or lottery payments that are spread out over a period of years, sometimes life circumstances dictate that arranging to receive cash for structured settlements is a preferred option. Sometimes lottery winners find that selling their structured settlement and receiving cash for lottery payments helps them achieve their near-term goals. The reasons people sell structured settlements vary. Here are just a few situations when this type of transaction may be preferable.
Educational Needs
Suppose a child is awarded a structured settlement due to an injury that is someone else’s fault. While a monthly sum may work fine while he is still in grades K through 12, once he graduates, he may find that selling the remainder of his structured settlement allows him to have the money needed for higher education. College students today graduate with more debt than ever, and those who are able to pay up front for their education start out ahead once they graduate with a degree.
Buying a House
Another change in life circumstances that may prompt a person to arrange to get cash for lottery payments or some other structured settlement is the desire to buy a house. For example, a young woman with a structured settlement may decide that the time is right for her and her spouse to start a family. Selling her structured settlement could give her enough money for the down payment on a house, significantly cutting down on the size of mortgage she would have to obtain in order to buy a house.
Death of a Structured Settlement Recipient
If a person in their senior years receives a structured settlement guaranteed for a certain number of years and then passes away before the structured settlement ends, his or her heirs are faced with dividing up a monthly payment. Heirs may decide instead to sell the remainder of their loved one’s structured settlement and divide the lump sum, avoiding the psychological pain of revisiting their loved one’s death when having to divide up a payment month after month.
Deferred Settlements
On occasion, settlements may not kick in until a person reaches a certain age. Suppose a young man is due to begin receiving a structured settlement at age 40, yet he has the opportunity to start his own business at age 25. Rather than waiting or borrowing start-up capital, he could sell his deferred structured settlement and have a lump sum immediately to use to start his business.
Getting Started
Today, almost every state allows people to sell all or part of their structured settlement payments through relatively simple court procedures. Choosing a trustworthy company that specializes in buying structured settlements for a lump sum can make this process go smoothly and help those with structured settlements cope with their immediate life circumstances. Generally, the seller needs to provide a settlement and release agreement and their annuity contract. If these documents are not readily available, companies that buy structured settlements often have the ability to help locate and obtain these documents.