Super Fitness Health BlogReceiving Your Annuity Payment Through Structured Settlements
Annuity payments that are received through structured settlements are set up so that you will receive these payments on a monthly stream as a source of income. People who are getting these types of payments usually have won the lottery or won a judgment against some company. The structured settlement annuity payments are usually paid to the annuitant in one of several ways. Some of the choices for payments are monthly, quarterly, semi-annually, and annually. If the structured settlement payments are for a minor then in most cases the winnings are made available in a trust for person.
Simple Terms To Understand when Getting Payments
When you are the person who is getting the payments from a settlement you are known as the annuitant. The payments are made to you from an insurance company that is in charge of making sure that you receive the correct amount for a particular period of time. If you have won as structured settlement because of an accident or injury you don’t have to pay taxes. However those that have won a lottery will most likely are required to pay both Federal and other taxations.
Structured Settlement and Annuity Payments are Serious Business
There are a lot of cases where people think they know what and how things should go. In many cases they try to handle it on their own. Structured settlements should not be one of them. If you are going to receive a structured settlement you may want to consider finding a lawyer to help with your case. Annuity and structured settlements are very complex and isn’t something to be taken lightly.
Remember these types of issues are actually contractual and are what the courts use in serious injuries, wrongful deaths and even in accidents that happen at work. The Structured Settlement Protection ACT (SSPA) is what mandates the payments of settlement to help maintain a source of order within the business of dealing with this matter.
Some People Feel It’s a Win Win for Many
Though it begs to be that one could hardly say that being injured or death is a win when looking at the possible settlement situation this is something to consider. For the person who is receiving the annuity payment they will receive a consistent amount of payments for a specified time and the person paying doesn’t have to pay a lump sum payout up front. This allows the defendant the chance to make installments that will be guaranteed through an insurance company.
Make Sure you Have Reviewed and Are Sure
When you are going through the settlement process make sure you and your lawyer/attorney are certain that this is what works for you. Once you have signed the contract this is not something that you will be able to change easily. If you have chosen to receive monthly payments you will not be able to ask for a lump sum of cash later from the insurance company. If you end up needing more money than you are receiving monthly you will be forced to try and sell some of your payment to a structured settlement buyer.
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