Additional Resources

Get a Cash Payout On a Structured Settlement
By Herbert Hodges
It is not uncommon for people who are beneficiaries of a structured settlement to sell some or all of the settlements for a cash payout. The reasons for selling a structured settlement vary but the Read more...

tax on structured settlements


Why would a company want to buy my structured settlement?
By George Hostetler

There are several structured settlement companies and corporates that purchase structured settlements and offer a lump sum in exchange. The simple reason for a company to purchase a structured settlement is that it represents a good investment deal. Structured settlement payments from lottery winnings, royalty payments, and insurance annuities are income-tax free and are secured by federal and state regulations.

Companies that purchase structured settlements are thus assured of a steady stream of income over a period of time which allows them to execute their growth plans in an assured manner. Alternatively the money can be invested by these companies where the principal continues to grow.

Corporates purchase structured settlements at a profit. This means that the amount which the seller receives is a discounted amount arrived at by factoring in the profit margins and bank interest rates. Also, by purchasing a structured settlement companies are able to obtain loans more easily. This is because of the secured nature of these settlements. The loan money can be used to pay off a large chunk of the lump

sum. Thus, the company ends up paying very little out of its own pockets.

Structured settlements represent secured finances that help improve the market standing of a company which has a healthy effect on their businesses. They represent a safe business option for their partners because of their financial soundness. The more business they generate and prosper the less need these companies have for middle-men in their dealings with sellers of structured settlements. This allows them to offer the best rates to sellers by eliminating broker’s commissions.

The work involved in executing a structured settlement sale basically consists of marketing activity and working with the seller for acquiring court approval. Companies do not require diverting too many resources to this activity but the returns of the efforts are manifold. At any point in time, there are individuals who need cash for immediate use. By establishing a network through agents and by maintaining an online presence, structured settlement buyers can tap into a lucrative source of guaranteed and income that will last them for a long time.


George Hostetler recommends Structured Settlements Guide for more information on how to sell or buy a structured settlement.

We strive to provide only quality articles, so if there is a specific topic related to structured settlement that you would like us to cover, please contact us at any time. And again, thank you to those contributing daily to our tax on structured settlements website 

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Pros and Cons of a Structured Settlement
By Jason Hahn
As with just about everything, structured settlements have both advantages and disadvantages. One key advantage is the tax benefits associated with a properly set-up settlement. An appropriately Read more...
Additional Resources
Mesothelioma Settlements
By Ken Marlborough
Mesothelioma lawsuits are often multimillion-dollar settlements, because it is a deadly form of cancer that results in the death of the victim. Considering also the pain and Read more...

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tax on structured settlements