The American justice system is dedicated to the protection of each and every American citizen’s freedoms. In the case of civil lawsuits, someone has been wronged and is entitled to compensation. In order to avoid the need for legal action, up to 92% of cases settle outside of court. The average employee lawsuit paid out an average of $150,000; medical malpractice lawsuits paid out a combined $3.6 billion in 2013.
Structured Settlement Annuity Benefits
A structured settlement paid out in the form of an annuity provides the claimant with a yearly check to live on. For tax purposes, a structured settlement can save someone between 25-25% in state and federal taxes on interest income that would have otherwise been subject to tax — this varies depending on tax bracket. Someone set to receive a one million dollar settlement over the course of a 10-year annuity would receive $100,000 in income every year, which would be taxed at a lower income tax rate than a one million dollar lump sum.
Selling Your Annuity Settlement
Depending on the size of your structured settlement and your cost of living, the payments from your structured settlement may no longer be sufficient to cover your needs. In these cases, selling an annuity settlement for a lump sum may be the best move for your unique situation. Selling off a structured settlement can cost surrender charges that can cost up to 10% of the remaining settlement, so it should not be a decision made lightly. There are many businesses that buy structured settlements, so it may be helpful to look around and explore different offers to find the deal that suits you. If you need fast access to your money, consider selling off your payments to a business that will buy structured settlements to make the most out of your money.