The Periodic Payment Settlement Act of 1982

voted for by the senate, altered the American tax law to recognize and inspire the use of structured settlements as a financial solution in cases involving personal injury or accidents. Before 1982, money paid resulting from lawsuits as a result of accident, injury, or workmen's comp cases were generally dispensed entirely at once. This made it necessary that the injured party not only adjust to living with a disability, but also to adjust to a more complicated financial life.
n a case involving physical harm and legal action involving a party to blame, a settlement by annuity might come about as an alternative to a lump sum cash payout. The party and victim will make contact to discuss what the victim requires in terms of medical care, and to reach an agreement about the length of time that care will be necessary. A contemporary worth is determined and an annuity broker or an insurance company representative will run the numbers to determine the long-term value of the annuity. The party to blame that is responsible for the damages will then purchase an annuity to fund the structured settlement, which will pay the injured person a steady stream of payments over time. It can be exasperating to suddenly come into a large amount of money. The funds ought to be invested where it can earn more, and invested in an intelligent manner. If it is not possible to handle the cash yourself, then you have to put the funds in other competent hands. These circumstances normally end in disaster, and many survivors of personal injury or accident find themselves destitute very quickly when their settlement was intended to support them for life.

Many accident victims ended up penniless without adequate help due to problems with careless spending, crooked investors or money grubbing family members. Annuity settlements arrived as a result of many people being awarded sizeable sums for personal injury.


Can one sell a structured settlement? There are investors that purchase annuity settlements, winning lottery amounts, and other settlements paid over time.
If you agree to accept a structured settlement, you cannot swap it for a lump sum payment, nor may you use your settlement as collateral for a loan. Under certain circumstances, you may be able to sell your structured settlement, but each state has its own laws.

The value of your settlement was determined by a number of factors - the amount of time you are to receive the annuity, the difficulty of your trouble, and the forecasted rate of inflation for the time you will receive the money. The responsible party that is paying you is purchasing an annuity, and the amount that they pay up to establish that annuity is but a fraction of the total amount you will receive over the years.


The worth of your annuity in current dollars will probably be half of the long term value, depending on how the payments were designed. Should you sell your money, be sure to understand that the amount that you are going to be offered for your payments will likely seem fairly modest.


You should shop around for the best arrangement, as offers will vary widely. The sale must be arranged in court and some insurance companies are not willing to assign them to an an investor. If you decide to sell , be sure to discuss it with a competent attorney. Beware of scams; you will want a legal representative to make certain that you actually get your cash for the transaction.


These parties want to make money on the transaction, and for them, that income will be a long ways off. Any company that offers to purchase your payments is motivated by investment purposes.


All in all long term payments are pretty flexible, and can be used nearly any time where the victim or injured party needs a flow of income for a long period of time.