Personal injury claims no longer revolve around physical wounds as judges have for long accepted nervous shock or psychiatric harm is bodily injury. But no court can award payments like a lottery or poker hub. Assessing compensation for a hyperactive depression is easier than a lost limb. Psychiatric injury poses even more danger as it remains hidden, locking you into a soulless shell of anguish. Luckily, our courts today allow victims of psychiatric illness to recover damages. You’ll be surprised after a protracted lawsuit hinged on psychiatric harm; the colossal amount recovered falls back to structured settlements. As the English aphorism puts it” A rose by any other name would smell as sweet”, a structured settlement refers to compensation granted to a tort victim that spreads out payments throughout the years in an income stream rather than a lump sum.
I was employed by an oil exploration and mining company between 1999 to 2010 when a rig exploded killing my co-workers and severely injuring a dozen others. Although I escaped death’s grip without a scratch, the horrific and seismic blast swept through like greased lightning leaving me with post-traumatic stress disorder (PSTD). I was successful in my claim against the employer in a personal injury lawsuit for compensation resulting to a structured settlement. Structured settlements have shaped our legal landscape in the last few years giving successful claimants vested rights to cyclical payments and determined lump sum cash outs. I sought to assign my future payments to structured settlement annuity companies for immediate money.
Sell Structured Settlement Payments-Legal Steps You Must Observe in a Factoring Transaction
- The structured settlement funding companies prepare a pile of documents that include a valid contract and disclosures. It helps shed light on the value of future payments tradable in contrast to the net value I would receive in return for the annuity. The structured settlement company determined the discounted market value of the payments I was selling at a flat rate.
- The validity of selling structured settlement payment proceeds must be approved by the courts. The courts duties included safeguarding my rights as well as ensure financial support and welfare of any dependents.
- The buyer of my structured settlement annuity arranged for assents from interested parties and amicably resolved objections before an application proceeded to hearing in court.
- I was also informed to involve professional advice as Louisiana legislation has made it mandatory before the sale of any structured settlement.
Discounted Price Estimation-Formula for Assessing Your Structured Settlement
I determined the cash payment I would get by working out the amount equivalent to the total value of undiscounted structured settlements traded less the price offered by the buying company. My structured settlement entitled me to $50,000 annually for a period of ten years. I had received payment for one year only selling the payments in the remaining nine years. I got a $370,000.00 lump sum after all deductions. The transaction’s discount was $80,000, the balance to the aggregate structured settlement payments I sold ($450,000).
Did I lose the Structured Settlement Tax-free Benefits in the Sale?
Complying with the federal and state laws as well as obtaining the court’s approval absolved me and the structured settlement payout from tax penalties exercisable by the IRC. Section 5891 imposes a 40% excise tax on the structured settlement company if your transfer has not been approved by a court order.
Sell My Structured Settlement Twice-My Wife Also Contracted A Company that Insisted on Going Forward Against My Will
As I had to seek the court’s approval before I could not be granted two orders for the same structured settlement annuity. Though the company had a biting clause in its contract document referring the matter to arbitration, their attempt to force me to enforce the agreement was halted by a court order.
Tried and Tested Structured Settlement Companies
Fairfield Funding acts as your agent or representative for compliance with all laws and court or judge-issued orders to purchase your structured settlement at a lump sum. The company had an amazing offer and fair agreement with well-spelt-out terms.
Woodbridge Structured Funding
The company specializes in purchasing structured settlements and annuities. The buyer gives 100% guarantee, gives the best price offer, disburses cash in the New York minute and sets the seal on your deal without interest advances or fast closings.
Stone Street Capital
Stone Street Capital has a lengthy history in the factoring sector helping thousands of annuity holders to get their financial investments get off the ground. The company has long-drawn-out expertise in this domain to ensure you get a lucrative offer for your future structured settlements earnings.