Structured Settlements Are Inflexible
Although structured settlements offer a certain degree of flexibility during the decision making process, once you sign the agreement, you cannot alter the provisions. It is highly advisable to have an attorney and broker help you determine the best payment methods for your situation. Your broker can come up with various scenarios and payment schedules so you can take a good look at your options.
When creating your payment schedule, do so while thinking of the worst case scenario the future may bring. So, if it should ever happen, your structured settlement will still be able to meet your needs.
Sell Structured Settlement Payments That Have Become Inadequate
Sadly, despite all our meticulous planning, you may incur a large unexpected expense that demands an amount larger than your next periodic payment.
Even though you cannot alter the provisions of your structured settlement, you might be able to sell all or just a portion of your future payments to a third party.
What to Consider Before Selling
Before you decide to sell structured settlement payments, think of why you need the money. Is it to pay for an immediate medical expense, to buy a home, or to go back to school? Examine your need as an individual and as a member of a family that will most likely be affected by your decision. For instance: Do you have children who are about to go off to college? If so, not only will you incur significant tuition expenses, you will also have less need for a larger home.
Also keep in mind that selling structured settlement payments means doing so at a discounted rate. Decide whether or not your current need is so important that you are willing to sacrifice the full amount you’ll be getting in the future.
Selling Structured Settlement Payments: Your Options
You do not have to sell the entire remaining amount if you don’t really need to. Your selling options include:
• Full amount: The buyer calculates the present-day value of the payments and offers a lump sum.
• Part of the payments: Only a specific number of the future payments are sold at their present-day value
• Percentages: You may sell a percentage of each payment and keep the remaining balance for yourself.
