Set Up Sum Settlement For Free with DocHub and make the most of your documents

Aug 6th, 2022
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A brief guide on how to Set Up Sum Settlement For Free

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How to Set Up Sum Settlement For Free

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Hello, its Greg Maxwell with Amicus Settlement Planners. I wanted to just chat with you a little bit today as plaintiff attorneys about kind of the mechanics of how to set up a structured settlement annuity, because its a little bit different than just settling a case for cash. And there are a few things you need to know so that you can avoid some of the pitfalls and get yourself in a situation where its too late to do a structured annuity. So, if youre going to effectuate a structured settlement annuity on behalf of an injured client, that needs to happen and be part of the settlement agreement with the defendant. So, the first step is you would contact your structured settlement planner, okay? You call your settlement planner, come up with the right annuity design that your client wants. Once youve got that dialed in and you found the right annuity company, the company that the client feels good about then you need to make sure that theres language. Lets assume its a minor o

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When you agree to a structured settlement, you will receive compensation for an injury over time instead of in a lump sum payment. This can be a good idea because you will have a stream of income that is generally tax free and you dont have to worry about investing or managing the money.
Structured settlements: A tax-free income solution A structured settlement provides many benefits that a lump sum cannot. For starters, both the settlement proceeds and any growth on the proceeds within the structured settlement are 100% income tax-free. The payments are guaranteed1, and so is the rate of return.
MYTH #3: The return on a structured settlement will be less than that on a traditional investment. Structured Settlement Fixed Rate of ReturnPre-Tax Rate of Return Needed to Match the Fixed Rate of a Structured Settlement3%4.00%4.97%4%5.33%6.62%5%6.67%8.28%
Structured settlements have huge tax benefits. Settlements paid in a workers compensation case are not taxed. If, however, you take a large settlement in a lump sum and invest the money on your own, all of the earnings on the money are taxed.
A major drawback of a structured settlement is that it may jeopardize the beneficiarys eligibility for public benefits, which may be particularly problematic when the persons medical needs are covered by Medicaid rather than private health insurance.
Instead of receiving a lump sum of money for damages, a series of scheduled payments are made from the defendant to the plaintiff over time. The result of receiving a structured settlement is increased financial security for the plaintiff and assistance to pay for medical bills or other necessities.
Cashing out a structured settlement involves a court approval process which takes about 45 to 90 days. Selling future payments offers more flexibility. Interest rates are rising for annuities in 2022, making purchasing an annuity more intriguing for buying companies.
A structured settlement may offer various advantages: Payments from a structured settlement do not count for income tax purposes. Income from a structured settlement will not affect eligibility for government benefits. Structured settlements offer docHub flexibility in terms of payment amounts and duration.
A structured settlement provides many benefits that a lump sum cannot. For starters, both the settlement proceeds and any growth on the proceeds within the structured settlement are 100% income tax-free. The payments are guaranteed1, and so is the rate of return.
A structured settlement provides many benefits that a lump sum cannot. For starters, both the settlement proceeds and any growth on the proceeds within the structured settlement are 100% income tax-free. The payments are guaranteed1, and so is the rate of return.

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