Before the advent of structured settlements, tort claimants in a personal injury lawsuit would get a one-off, lump sum amount in the resolution of the civil action. Under the structured settlement scheme, the plaintiffs or payees opt to collect many, reduced payments-typically disbursed in future at pre-determined dates. Structured settlements dominate in the world of compensation due to their long-term guarantee of a stream of income to offset payee’s personal injury and disability. They also scale back the likelihood of dissipating money if granted in the form of a lump sum. Structured settlement funding companies carved out a niche to provide lump sum amounts of money in return for a quick, smooth lump sum payment. Structured settlement cash flows constitute an intangible asset you can tap into when you plunge into excruciating economic circumstances.
I have a structured settlement annuity entitling me to monthly installments of $5,200 for the rest of my life. Well-versed with the structured settlement secondary market in the sale of lottery winnings, I was no newcomer to the industry. I wanted a company that would procure a portion of my monthly cyclic installments-specifically, 200 periodic payments of $2,000 each-commencing April, 17th 2017 up to August 11th, 2040. I wanted a company that would pay above $300,000. In Maryland where I was living, the transactions fall under the provisions of the Structured Settlement Protection Act.
Sell Structured Settlement Payments
Selecting A Reliable Structured Settlement Company
Maryland has plethora structured settlement financing companies that can offer a lump sum in return for periodic payments and annuities. You can find most companies online and retrieve a free, tailored quote like me or visit brick and mortar offices. Peachtree agreed to buy-out my future structured settlement income stream I had hived off in return for more than the $300,000 I was seeking. I endorsed their offer right away and received relevant documents underlying the transfer transaction. The bundle contained a disclosure statement, transfer agreement, and a memorandum admonishing Independent Professional Advice. But no matter what the professional would recommend, I was determined to nail my $300,000 and was never going to look back.
Maryland’s Structured Settlement Protection Act
Filing an Application at the Prince George’s County Circuit Court
Peachtree filed a petition in the circuit court of the county where I resided. The court excused my professional advisers from appearing in court. We appeared with the employee of the structured settlement funding company to answer a handful of questions. The court grilled me to ensure the transaction was demanding, reasonable and appropriate. I had no dependents, received professional guidance, and the factoring deal was in my “best interests” as I only needed more bucks to invest. Further, the judge observed my transaction was tenable in the circumstances as I could account for every penny since I started receiving my installments and only sought to split up a small percentage of my monthly payments to invest.
What Were the Legal, Tax and Fiscal Implications of the Transaction?
My unassigned structured settlement installments would not fall under tax man’s ax. However, my lump-sum amount became exposed to all manner of taxation where I invested. Legally speaking, the structured settlement acquired an interest in the factored future income stream and vested rights to receive periodic payments once they mature. Finance-wise, I was able to swap my futuristic income stream into a lump-sum worth more value as money tomorrow resembles the proverbial bird in the bush. Armed with a qualifying order and court approval, Peachtree dodged the 40% Excise tax imposed on transactions lacking judicial sanction.
It’s All Downhill from Here, I Received My Lump-Sum Payment
Before tweaking my structured settlement payments, my family was tilting towards the depths of economic anguish. I could sense the impending doom if I could not raise a down payment due to the attendant foreclosure. With plethora bucks, I purchased a vehicle, cleared off the foreclosure, paid off household expenses and bought my wife spanking new saris, and she now dresses to kill.
Top Three Structured Settlement Purchasing Companies Endowed With Expertise and Experience
Peachtree Financial Solutions will offload the whole enchilada; they draft a compliant transfer agreement, act as your court representative, offer a money-making price quote and serve notices to all interested parties in a trice.
Olive Branch Funding is a seasoned buyer of structured settlement income streams, annuities and lottery winnings in Maryland and yonder. They can fine-tune a financial package dovetailing with your exigencies and contingencies.
Woodbridge Structured Funding has the industry’s in-depth experience, a vast network of attorneys and customer advocates to expedite your application. The company has left imprints on the legal landscape by working jointly with the state officials to legislate consumer protection laws.