Cash For Structured Settlements

Bruno DePeno asked:


Structured settlements are generally used to compensate individuals who have been awarded a huge sum of money. They are most commonly used when an individual himself has been seriously injured or disabled due to the negligence of another individual or organization. They are also very frequently used to pay out jackpot lottery winnings. Instead of paying a huge lump sum amount of cash, structured settlements are generally paid out over a spanned period of time. Payments are also issued monthly, quarterly, semi-annually or annually. These payments are strongly backed by an annuity distributed through various life insurance companies. Structured settlement payments are tax-exempt and hence tax free.

There are various types of structured settlements in all. Each is designed and structured to suit an individual’s financial requirements. Some are paid out for a specific period of time, while others are paid out for the remainder of the recipient’s life. When structured settlements are paid out over a period of time, these payments are referred to as “Designated Period” or “Period Certain Annuities”. What this means is the recipient will be receiving a fixed amount of money at a specific time monthly, annually for a predetermined number of years. If the recipient dies intermittently before the structured settlement is paid in full, the remainder will be distributed to the designated beneficiary (of the party or the individual). Life annuity structured settlements are paid to the recipient for the remainder of their lifetime. It’s important to note in many cases “life” might be actually referring to a certain number of years based on the individual’s life expectancy as determined by the company. Also referred to as “Period Certain”, this form of structured settlement annuity will have a transfer to the beneficiary if the recipient passes away prior to the decided number of years.

One might get Lump sum payment at a future date through Lump sum annuities rather than the traditional Structured Settlement payment. This type of structured settlement is inviting the people who have children or some form of beneficiaries. The funds can be arranged and ordered to be paid out when the child enters college or whenever the benificary might enter a period of financial necessity and helps to pay for educational expenses. There are two modes of lump sum annuities called “Lump Sum” and “Life Contingent Lump Sum.” The first allows transfer of the annuity to a designated beneficiary, while the second one does not. Life annuities generally provide monthly structured settlement payments for entire life period. The two types of life annuities available are — “Life Only” and “Joint and Survivor.” The first kind offers no chance to assign a beneficiary, whereas the second continues payments to the beneficiary for the remainder of their life. Last, but least, is the Temporary Life Annuity. This type of structured settlement pays in regular periodic payments for a specific number of years. The annuity term ends when the recipient expires, as there is no beneficiary provision in the agreement.

Even though structured settlements provide long-term financial commitment, there are a few known drawbacks. One of the main drawbacks is once the papers are signed, there is no way to modify or change them. If unexpected expenses are incurred, money cannot be withdrawn from the structured settlement account. Since this documentation is more complex than expected, the attorneys should be well-versed with the subject of contention and preferably also a certified structured settlement broker. If structured settlements documents are not properly drafted and created through the complete set of litigations involved will be a head ache process to the recipient of the structured settlement and will have a sleep less nights.

One may or may not use his or her structured settlement payments as collateral for a loan. The reason is that the federal law is designed to provide these benefits to one on an income tax-free basis also prohibits from assigning or encumbering them.

Again, the federal law that assures the payments one receive are on a tax-free basis, also prevents converting payments into a “lump sum” settlement.

No one except the individuals specified in the Settlement Agreement can be made the payees on your checks that you receive from the structured settlement company. Exceptions may be made as the consequence of a court order.

Ann asked:


Sometimes when a plaintiff settles a case for a large sum of money, the defendant, the plaintiff’s attorney, or a financial planner consulted in association with the settlement, will propose paying the settlement in installments over time rather than in a single lump sum. When a settlement is paid in this manner it is called a “structured settlement”. Often the structured settlement will be created through the purchase of one or more annuities, which guarantee the future payments.

A structured settlement can provide for payment in pretty much any schedule the parties choose. For example, the settlement may be paid in annual installments over a number of years, or it may be paid in periodic lump sums every few years.

Potential Disadvantages of Structured Settlements

Some people who enter into structured settlements feel trapped by the periodic payments. They may wish to purchase a new home, or other expensive item, yet be unable to muster the resources because they can’t borrow against future payments under their settlement.

Some people will do better by accepting a lump sum settlement, and investing it themselves. Many standard investments will give a greater long-term return than the annuities used in structured settlements.

Selling a Structured Settlement

If you have a structured settlement, you may have been approached by a company interested in purchasing your settlement, or may be curious about selling your settlement in return for a lump sum buyout. About two thirds of states have enacted laws which restict the sale of structured settlements, and tax-free structured settlements are also subject to federal restrictions on their sale to a third party. Also, some insurance companies will not assign or transfer annuities to third parties, to discourage the sale of structured settlements. As a consequence, depending upon where you live and the terms of your annuities, it may not be possible for you to sell your settlement.

Keep in mind that companies which buy structured settlements intend to profit from their purchase, and sometimes their offers may seem quite low. You may benefit from approaching more than one company in relation to the sale of your settlement, to make sure that you obtain the highest payoff. You also want to be sure that the company which wants to buy your settlement is established, well-funded, and reputable - you don’t want a fly-by-night outfit to obtain the rights to your annuities but to disappear or go bankrupt before paying you the buyout money. You may have to go to court to get a judge to approve the buyout. It is usually a good idea to consult with a lawyer before entering into an agreement to sell your settlement.

Special Considerations

Any person entering into a structured settlement should be on guard for potential exploitation in relation to the settlement:

Excessive Commissions - Annuities can be highly profitable for insurance companies, and they often carry very large commissions. It is important to ensure that the commissions charged in setting up a structured settlement don’t consume an inappropriate percentage of its principal.

Overstated Value - Sometimes, after negotiating a particular settlement figure, the defense will overstate the value of a structured settlement. As a result the plaintiff, in accepting the settlement, in fact obtains a significantly lower dollar value than was agreed upon. Some defendants have nominally paid the full amount of the settlement, knowing that they would later obtain significant rebates from the annuity companies they used. Plaintiffs should consider compariing the fees and commissions charged for similar settlement packages by a variety of insurance companies, to make sure that they are in fact getting full value. A plaintiff may wish to make it a condition of the settlement that the defendant will actually pay the full value of the settlement in setting up the structured settlement, and that any rebates received by the defendant for annuities included in the settlement be payable to the plaintiff.

Self-Dealing - There have been cases where the plaintiff’s lawyer is also in the insurance business, and sets up a structured settlement on behalf of a client without disclosing that the attorney is purchasing the annuities from his own business, or is pocketing a large commission on the annuities. Similarly, there have been situations where the plaintiff’s attorney has referred the client to a particular financial planner to set up a structured settlement, without disclosing that the financial planner will be paying the attorney a referral fee in relation to the client’s account. Make sure that you know what financial interest, if any, your lawyer has in relation to any financial services sold or recommended by the lawyer.

Life Expectancy - It is unfortunate, but many people who receive large personal injury or workers’ compensation settlements will have a shortened life expectancy as a result of their injuries. It is important to consider life expectancy in association with any structured settlement, and to consider whether it is appropriate to enter into an annuity where payments will cease upon death. Sometimes it will make sense to insist upon an annuity that pays a minimum number of payments, or one that will pay a balance into the plaintiff’s estate, such that the value of the settlement is not lost to an insurance company upon the plaintiff’s untimely death.

Using Multiple Insurance Companies - For larger settlements, it often makes sense to purchase annuities for a structured settlement from several different companies, dividing the settlement between those companies. This can provide you with protection in the event that a company that issued annuities for your settlement package goes into bankruptcy - even in the event that one of the companies defaults in part or in full on your settlement payments, you would still receive full payment from the other companies.

Additional Resources



Selling Your Structured Settlement - The costs and benefits of selling a structured settlement.

Cash Payment For Your Structured Settlement - What should you consider before selling your structured settlement?

Phillip Hatley asked:


Selling a structured settlement is not difficult but does require some research and thought on the part of the seller before committing to the structured selling process. First, we must define a structured settlement. A structured settlement is a legal contract between two parties to compensate one party in the contract a set sum of money paid out in installments over a given period of time. Usually these contracts are formed and agreed upon between the party that is being compensated and insurance companies or other entities that are required to make the payments.

Once the contract or sum is agreed upon, the party that is required to make the payments begins making payments in monthly installments. Often times these payments are made over years requiring the payee to wait years for the total amount. In some cases the monthly income is viewed as favorable by some. In other cases, the total amount in one lump sum may work better for the payee. Often, lump sum payment is not an option for the payee so they are forced to take a monthly installment payment plan over a set period of time.

Selling a structured settlement to an investor or company that specializes in buying notes, or paper, is an option for people that have been awarded structured settlements. In some cases, people that have structured settlements may experience financial difficulty or health issues that require them to liquidate their structured settlement quickly. Loss of a job or other income streams may be lost, prompting these people to sell their structured settlement. Sudden illnesses such as cancer or heart attack may cause long term disability and immediate cash is needed to meet monthly expenses as well as medical bills.

There are other reasons to sell a structured settlement although not as dire as the above reasons. Some people sell their structured settlements to free up cash to take a long dreamed of vacation. Others sell their structured settlements for home improvements or to buy the dream house they have always wanted. The reasons vary with some selling their notes to put their children through college or taking the lump sum cash investing it in other financial instruments to increase their return over time.

It should be noted that when selling a structured settlement, the total amount of the settlement will not be realized. Structured settlement buyers offer to buy these notes at a discount in return for lump sum cash to the payee. The settlement buyer is assuming risk in buying the note with the discount reflecting the amount of risk the buyer must assume. Many risk factors must be considered by the settlement buyer including the amount of the settlement and the financial worthiness of the payor. Companies that make structured settlement payments are not immune to insolvency and bankruptcy, so the buyer must consider these factors before purchasing a structured settlement.

Selling a structured settlement is not difficult and only a process that requires some serious thought and research. Considering your needs and the reason for selling the settlement should be foremost before initiating the process of selling your structured settlement.

Alec Jordan asked:


What are structured settlement loans: that is the question which comes in front of the needy who have met recently accident. Is an allowance which is given to the aspirant as a financial reward normally person gets structured settlement  due to accident when they become worthless and are unable to do their old work  in which were  an engaged. Therefore, it has been nectar for the applicants who are keen to utilize. Mode of the structured settlement is totally depends of the company that gives structured settlement loans to claimant.  It has come with many modes like yearly, monthly, half yearly, and quarterly but these can be implemented via litigation. The leniency is bestowed to the aspirants about utilization of structured settlement if their intention is to sell their remnants part of the structured, they can sell it without any predicament but they need consent from the court. Under structured settlement people get money periodically. At many occasions it has been failed to live up to aspirants’ expectation in order to meet their requirement. At the crunch situation, they have right to dispose of their structured settlement in order to get maximum benefit of it. It also endows leniency to the penurious who intend to sell it. This way they can quench their thirst by selling their structured settlement. Sometime an immediate need for cash arises, financial crunch comes at the door of the claimant at that if they intend to sell it to collect the amount, and they can dispose of part of the remaining periodical. There are many complications to sell the structured settlement unless you get the approval from the court with your financial advisor, they cannot sell it.  It is one of the most required things which should be done before making up their mind in order to acquire capital. Whenever aspirants want to sell their structure settlement, they should be vigilant and keep hawk eyes on the buyers, moreover exhaust all the effort to get the best deal to the dealer. There are numerous dealers on line who are keen to buy structured settlement before selling it; seller should weighs pro and cons about this deal. Structured settlement loans are a remedy for those who become jobless this way they can lead their life effortlessly and remove the darkness in their life.    

Steve H. Wentworth asked:


Introduction

So I guess the first question you have is how did I go about saving my work colleague $250, and what type of moving help did I offer? I checked out her requirements, did some research and recommended a Pods moving company. Let me explain why this was the best option for her.

Moving Help Required

A few months back a work colleague called Susie who lives in California State came to me for some moving help with regard to which type of moving service she should use to make her current move.

When I first spoke to her she was considering using a professional moving company because of her particular set of circumstances, which were:

· She had two young children and worked and therefore time to pack was at a minimum.

· Her husband worked shifts and would not be around much of the time to help with the packing.

· She could also foresee that she might need some storage between the move.

I asked for the zip code she was moving from and to and an approximate idea of the square footage of the house she was moving from. With that I said I would be in contact with a moving quote and assured her I could beat the one she already had hands down and meet her moving requirements.

Hiring A Pods Moving Company

Given Susie’s particular set of circumstances I felt that a PODS moving solution was best for Susie. “PODS” stands for portable storage on demand and is essentially a cross between a moving truck and storage container.

The great advantage of using such a system for Susie is that it provided her with the following features which matched her moving requirements exactly:

· A reasonable time to allow for packing, up to one month without any additional charge being made.

This allowed Susie and her husband to manage the packing around their busy work schedules and the children.

· As Pods moving companies are very competitively priced for local moves I was sure that any quote would beat the price she had been given by her professional moving company.

Getting A Quote From A Pods Moving Company

Using the zip codes and the house square footage I popped onto www.pods.com and got a quote in a matter of minutes. The quote gave me details of the cost per mile and the number of containers that would be required. I then telephoned Susie with the information.

The Pods Process In Detail

When I explained that using Pods would save her $250 on her local move and storage costs she was naturally delighted. I told Susie that once the Pod containers had been dropped off at her house she should try to pack them as tightly as possible to prevent the need for additional containers and any movement of the load once the container was on the road. Although Pods have a specially patented hydraulic lifting system, there are reports of movement of container contents, so don’t solely rely on this.

Conclusion

When you move using Pods you are paying for the convenience of are being able to pack you belongings over a period of time and the option storing the container(s) at one of the Pod storage depots. Pods are competitive compared to Professional moving companies if you are only moving over a short distance. There is quite a lot of evidence to suggest that they are not competitive when moving across country and you would be better served looking at another moving solution is this where you are at.

Jenny Sweeney asked:


Since the secondary market for illiquid financial assets was established, specialty finance companies have continuously sought new, innovative methods to inform consumers about their options in dealing with their structured settlements, annuities and life insurance policies. However, developing a marketing approach that is both informative and drives a response from a consumer can be a daunting task. To meet this challenge, J.G. Wentworth, a leader in the industry, has developed a unique advertising campaign that delivers their message in an entertaining manner – using take-offs on classical Wagnerian opera and afternoon game shows.

The commercial opens with a decorated Viking bellowing, “I have a structured settlement I need cash now!” As the music crescendos, the chorus proclaims “Call J.G. Wentworth 877 CASH NOW!” Mal Karlin, President and CEO of Karlin+Pimsler, who linked-up with J.G. Wentworth to create the campaign, notes that the success of the campaign was achieved through addressing three aspects: “The first order of business in TV is getting noticed, then defining the message and finally, having the viewer know what to do.” The success of the new campaign can be attributed to the creativity required to accomplish those three goals consistently.

J.G. Wentworth has experienced an overwhelming positive response from both consumers and the media. The campaign was highlighted during the Media Land segment of Fox Business News. During Fox’s “Money for Breakfast” morning show, Ken Murray, Chief Marketing Officer of J.G. Wentworth, discussed the goals of the new campaign in more detail. He notes, “With this advertising campaign, we wanted to reach out to consumers who may have heard about the secondary marketing of illiquid financial assets and J.G. Wentworth in order to draw their attention to the options that are available to them if they should have a change in financial circumstances and are considering selling their structured settlements or annuities.”

Murray added, “Long-time fans of ‘Mr. Wentworth,’ the iconic ad spokesman J.G. Wentworth has used for more than a decade, should look carefully at the new ads to spot the new role we plan for him in the future.”

Jenny Sweeney asked:


Since the secondary market for illiquid financial assets was established, specialty finance companies have continuously sought new, innovative methods to inform consumers about their options in dealing with their structured settlements, annuities and life insurance policies. However, developing a marketing approach that is both informative and drives a response from a consumer can be a daunting task. To meet this challenge, J.G. Wentworth, a leader in the industry, has developed a unique advertising campaign that delivers their message in an entertaining manner – using take-offs on classical Wagnerian opera and afternoon game shows.

The commercial opens with a decorated Viking bellowing, “I have a structured settlement I need cash now!” As the music crescendos, the chorus proclaims “Call J.G. Wentworth 877 CASH NOW!” Mal Karlin, President and CEO of Karlin+Pimsler, who linked-up with J.G. Wentworth to create the campaign, notes that the success of the campaign was achieved through addressing three aspects: “The first order of business in TV is getting noticed, then defining the message and finally, having the viewer know what to do.” The success of the new campaign can be attributed to the creativity required to accomplish those three goals consistently.

J.G. Wentworth has experienced an overwhelming positive response from both consumers and the media. The campaign was highlighted during the Media Land segment of Fox Business News. During Fox’s “Money for Breakfast” morning show, Ken Murray, Chief Marketing Officer of J.G. Wentworth, discussed the goals of the new campaign in more detail. He notes, “With this advertising campaign, we wanted to reach out to consumers who may have heard about the secondary marketing of illiquid financial assets and J.G. Wentworth in order to draw their attention to the options that are available to them if they should have a change in financial circumstances and are considering selling their structured settlements or annuities.”

Murray added, “Long-time fans of ‘Mr. Wentworth,’ the iconic ad spokesman J.G. Wentworth has used for more than a decade, should look carefully at the new ads to spot the new role we plan for him in the future.”

Robert Masud, Esq. asked:


When Internet users search online for information, they use search engines like Yahoo, Google, and MSN. Because some page owners have paid for some of its links to the search engine websites and the links come up whenever the website owner’s results appear as a search result, there have recently been conflicts between the owners of the trademark and some third parties. Efforts are being made to clamp down and contain the unauthorized utilization and misappropriation of trademarks and other intellectual property items when it comes to Internet search related issues.

J.G. Wentworth v. Peachtree Settlement Funding

In one such trademark conflict, J.S. Wentworth complained that Peachtree Settlement Funding infringed the trademarks JG WENTWORTH and J.G.WENTWORTH. The Defendant had used these trademarks as keywords and had paid to have links appear to its own website “immediately proximate to the link to Plaintiff’s website on the search-results screen” each time a user of the Internet searched the Google engine for “J.G. Wentworth” or “JG Wentworth.”

Because Peachtree Settlement Funding and J.G. Wentworth are competitors in the field of structured settlements, Plaintiff claimed that Defendant had stolen potential customers and diluted the effectiveness of its various trademarks, and that this caused a subtantial profit loss for the plaintiff. Defendant Peachtree moved to have the complaint dismissed.

The court acknowledged two important operative issues:

1. Whether Defendant used the trademark as keywords in the Google AdWords advertising program under the Trademark Act’s “use in commerce.” Owner of a trademark establishes rights through the use of the trademark in public marketplace.

2. Whether the use of the Plaintiff’s trademark infringed trademark rights provided for in the Act because it had a good chance of confusing the consumer.

On whether the trademark was used in commerce, Defendant argued that the trademark’s use was not for the public to see, and was not meant to be associated to Peachtree Settlement Funding, only an analog to the user’s personal response to a trademark. Defendant claimed it was not used in commerce “in connection with the sale of goods or services” to confuse consumers. Disagreeing, the court decided that Defendant’s use of the trademarks as keywords in their Google AdWords links, designed to draw internet users, constituted use in commerce under the Act.

Regarding infringement, however, Defendant argued that using the J.G. WENTWORTH trademarks as keywords was not likely to confuse the consumer. Here the court agreed, and stated “[a]t no point are potential consumers ‘taken by a search engine’ to defendant’s website…the links to defendant’s website always appear as independent and distinct links on the search result pages.” There was also no accusation that the Defendant’s ads and links that used the Plaintiff’s were “in any way discernable to [I]nternet users and potential customers,” and that “[d]ue to the separate and distinct nature of the links created on any of the search results pages in question, potential customers have no opportunity to confuse defendant’s services, goods, advertisements, links or websites for those of plaintiff.” The court then decided that the use of Plaintiff’s trademarks was not trademark infringement under the Trademark Act and the court dismissed the complaint.

The J.G. Wentworth v. Settlement Funding case confirms that it is not copyright infringement to use other companies’ trademarks in their online advertising keywords, in the opinion of this Pennsilvania court. Similar decisions have been made by other courts as well, including California, New York, and Virginia, and the Second Court of Appeals.

However, it’s important also that online advertisers such as Google AdWords and the trademark owners be aware that the issues of trademark infringement on these ads has not been resolved nationwide. Some courts have decided that purchase of a keyword does constitute “use in commerce,” and some have not reached a conclusion regarding the question of likelihood of consumer confusion. Other courts, such as New Jersey, California, Georgia, Minnesota, and the ninth Circuit Court of Appeals, have focused on the facts at trials instead of addressing the issues of use in commerce.

In general, however, the courts seem to side with the advertisers who use the keywords rather than the owners of trademarks, although it may be a while before the issue is fully resolved.

Steve H. Wentworth asked:


Introduction

If you are moving in the near future, chances are you might need to think about investigating storage facilities.

As a mover you may require storage for a number of different reasons, for example:

· The house you are moving into is smaller than your existing house.

· There may be unforeseen circumstances during the move that mean you are unable to move into your new house on time.

· You simply might not have the time when you move in to unpack everything at once.

Whatever your particular scenario is, it is always worthwhile being prepared for every eventuality.

How to get free storage

Most people’s first reaction when it comes to storage is to turn to family and friends. This can be a very good solution if you only have a relatively small amount to store, or your friends and family have a large storage space you can use. However, in most cases this option has its limits.

A good cost free alternative is one-way truck rental companies. Many of these offer free storage if you use their service. The period of storage is usually limited to the terms of your contract, to be utilized at either the beginning or the end of your hire period.

This kind of storage, although only short-term in nature, can be an excellent zero cost solution.

What kind of facilities do storage companies’ provide?

Most storage companies have a network of facilities conveniently located around the country with good transportation links. The facilities are provided to keep your belonging safe and secure, as well as proving you with around the clock access to your belongings. The following minimum standards are normally maintained:

· 24/7 controlled access to your property.

· Security and alarm entrance protection.

· A climate controlled storage environment.

If you require additional re-assurance, it is normally possible to take out an additional insurance policy to protect your belongings.

How to minimize your storage costs

Firstly, ensure the price that you pay for your storage is competitive. Request combined moving and storage quotes from companies you are considering moving with. Compare these with storage only quotes and don’t be afraid to haggle on price if it appears that you are not getting a good deal.

Before you sign-up with a storage company ascertain whether you will be able to change the size of the storage space later if you find that it is the wrong size when you come to fill it. Most companies offer this service so this should not be a problem.

Secondly, you need to make every effort to make maximum use of the storage space available to you, to ensure that you do not book additional storage! To do this you need to pack efficiently and fill you storage space optimally.

If your storage company has a service whereby they offer a team of packers to come and do the job for you, then it may be more cost effective in the long run. This is because they are experienced, thereby enabling you to avoid booking additional storage due your own packing and storage in-efficiencies.

Packing and Storage Tips

If you are packing and storing yourself, use the following guide to help you maximize your storage space:

· Always pack with storage in mind. Use sturdy boxes as these make maximum use of the space available when they are stacked. The contents of boxes should be clearly marked.

· Disassemble all electrical equipment and pack in the original packing if available.

· Store bookshelves upright so you can utilize shelves for non-standard items.

· Ensure fridges and freezers are thoroughly defrosted to prevent damage to your other belongings.

· Sofas and mattresses should be placed against the wall of the storage unit.

· All garden equipment should be should be cleaned, and any petrol drained away from items such as lawnmowers.

Conclusion

When moving it always pays to be prepared for every eventuality. Having to put your possessions into storage is a possibly in every move, so investigate your options even if you think you will not require this moving service this time around.