Types of structured settlement payments
Structured settlements have the wherewithal to prepare the plaintiff for distinctive financial indigence with varying and customizable funding recourses. This can be paid directly to the payee into a trust or memorial fund specifically pronounced for contractual integration of such cash flows. Transfer of funds can be facilitated to the plaintiff through electronic fund transfers or even if the attorney fees needs to be disbursed through structured payments.
Period certain annuities:
Period certain annuities are rendered only for an agreed span of time. When such emoluments are required for precise time frames modal structured settlements are employed. Lump sum amounts are combined with modal structured settlements to terminate structured settlement payment periods replicating cash flows that would ideally emerge from a bond that would be owned up to its maturity. Layering retirement income or funding for grad school or college often utilizes this type of settlements.
Temporary life annuity:
Periodic payments are dispersed till the life of the plaintiff for a nominated interval. Beneficiary gains are not a provision of this type of structured settlement and dispensation of funds is terminated as soon as the plaintiff expires. In the case of the premature demise of the payee, the structured payments may also end.
Life contingent lump sum annuity:
Annuity is assembled for an intended date to be paid in a lump sum. The period can extend for long intervals and in the case of an untimely demise of the plaintiff the beneficiaries are set to receive the lump sum amount. Annuity payments can also be programmed for to be dispensed on the due date only if the plaintiff is alive. In this type of life contingent lump sum annuity the beneficiary does not stand to receive any amount.
Joint survivor annuity and life only annuity:
Monthly payouts are made with provisions made for the beneficiary that survives to claim the amount after the demise of the claimant. However, there may be life only annuities with no provision for the beneficiary too.
TFSS or Treasury Funded Structured Settlements:
The TFSS also known as the T Bond Trust is an amalgamation of TIPS or Treasury Inflation Protected Securities and STRIPS zero-coupon bonds. The underlying principal of the bond escalates and dips in coordination with the rate of inflation but deferred lump sum payments are guaranteed. Interest is adjusted along with the principal.
Enhanced structured income:
The secondary structured settlement market enables fractions of structured settlement payment rights to be sold to provide for time continuum. Such procurements may not be tax free but come with attractive schematics after tax deductions specifically created for a short-term continuance. Inventories available in the secondary market control the rights to the sale and purchase of these structured settlements. Administrative simplicity for the plaintiff is achieved when the structured settlement is purchased through qualified retirement plans or other such asset management trusts.
Deferred Defined Benefit Annuities:
The beginning of a structured settlement payment is deferred by the payee to a future date. The known benefits payment is revealed to facilitate this transaction.