Usually the structured settlement annuity system works in that way, that the defendant agrees to pay the periodic payments and in exchange the claimant will drop the litigation. The next step is, that the defendant will seek a third party to pay the structured settlement annuity and will provide the needed funds. The third party will buy the annuity contract and is used for fulfilling the periodic payment obligations.
1. The Third Party Payments.
The next step is, that the defendant will seek a third party to pay the structured settlement annuity and will provide the needed funds. The third party will buy the annuity contract and is used for fulfilling the periodic payment obligations.
When a person has to buy a structured settlement annuity , is important to find an experienced broker, who can handle the process. The target, of course, is to get the best deal from the market.
2. Why The Structured Settlements Are So Popular?
The simple reasons are the benefits. The two main benefits are the tax free feature and the sure payment streams over a long period of time. Many other investments, like shares, can offer higher return on investments, but are not tax free and include big financial risks. The settlements are regulated by the laws and may require a prior acceptance from the court.
3. The Aid From The Special Company.
The annuity requires a lot of paper work, which can be handled by the expert firm. The process include The Settlement Agreement and Release, court orders, assignment agreement and the annuity contract.
4. The Tax Free Requirements.
It is important, that the defendant fulfils all the terms of the contract to be able to receive the tax free benefits. One of the key point is, that once the contract has been signed and agreed by the parties, it cannot be altered.
The payment from the settlement can also be done to the estate and in that case they are free from the income tax, but not from the estate tax.
5. The Process Schedule.
The closing of the process will take about from three to six months. When an individual has got the court order, he or she will start to get the payments in forty or forty five days.
The whole process is quite complicated and will need a lot of expertise. A person, who wants to handle this process with care and to avoid the future difficulties, makes it wise if he will use an expert advisor or consultant.