A lump-sum payment may be combined with a structured settlement in order to meet immediate expenses, such as medical bills, repayment of debts, rehabilitation costs, and the like.
PROBLEMS AND SOLUTIONS IN STRUCTURED SETTLEMENTS
In a recent case, Mr.Orivile Dickens, a successful business man on his way to Paris lost his left leg during a landing problem. As a result, he was left cashless after which a factoring company got him structured settlement that would settle his life. With the money he got from the structured settlements he bought a car and a residence in his home town. Everything was going well in his life when suddenly he was affected by cancer and was in an urgent need of money to cure the dreadful disease. He finally ended up in a solution where he was paid for his medical terms as he had his lifetime compensation.
In another case similar to Mr.Dickens, this lady called Jeniffer Waltz who had a lifetime payment quoted three times for selling her payments. For the first time she wanted to exchange her settlements for the next 12 years with $123000 since she wanted to buy a new flat, purchase furniture, clear all her liabilities. The court approved her transfer. Not less than 3 years, Waltz again came for exchanging 5 of her future settlements to settle in Dubai. The court approved this transfer as well. It was only later that the court came to know that she was not settled in Dubai and it was totally atrocious on her part. But in spite of all this, the court did not take the matter seriously. So, this is one such reason to choose structured settlements. The claimant can also be out of danger easily.
UNDERTANDING STRUCTURED SETTLEMENTS:
When it comes for using structured settlements, many misunderstand the term. It is not about injuring, paying and leaving. It is all about how effectively and smartly we use it. Three major instructions that are to be followed when using structured settlements are:
- To make an agreement between the defendant and the claimer regarding the payments.
- Making sure if both the latter as well as the former are fine with the agreement because, in most of the cases either the claimant is not satisfied with the settlement quote or the defendant.
- Pay taxes whenever necessary. This can be a crucial part as a few claimants accept lump-sum payments while registering for settlements later they don’t do as said. So, this should be avoided or rather choose structured settlements which is tax-free.
SOLUTIONS FOR JOINT LIFE:
Joint life, as the name suggests assures settlement both for the husband as well as his wife until their death. As an example, if a husband is put up in a situation where his life might pass any moment, he ensures that if his wife is being paid for future settlements making sure that his family will be in safe hands even after his death.