Woodbridge Structured Funding, LLC

Lump Sum FAQs

A lump sum payment is the full amount of money owed from a legal settlement, lottery winning or annuity. Learn more about lump sum versus monthly payments.

Do I get taxed if I choose a lump sum payment?

Federal and state statutes require court approval of a structured settlement transfer. In 2002, the federal government passed the Structured Settlement Protection Act (“Federal Act”) that requires court approval to determine whether or not it is in “the best interest of the payee” to sell their annuity payment rights. The Federal Act requires the approval of the state court, if that state has a statute, to avoid any excise tax for the acquirer of the structured settlement payment rights.

How can one get a lump sum payment for a structured settlement?

Companies, like Woodbridge Structured Funding, LLC, offers to purchase structured settlements for a lump sum. Sellers can choose whether they want to sell all or a portion of their future payments.

In exchange, the company that purchased the settlement receives the payments owed through the structured settlement, while the consumer is able to immediately use the lump sum payment to meet their own needs.

How do I choose the right company to purchase my structured settlement?

Look for an established company that has a clean record with the Better Business Bureau. Search the internet for reviews and comments on how the company treats its customers. Ask your attorney and financial team for their recommendations.

Then get quotes from the companies you're considering working with. The terms and lump sum payment you will be offered for an annuity can vary, sometimes widely.

Then bring your very best offer to Woodbridge, we will beat any current bona fide quote in writing from a competing structured settlement payment factoring company. You'll get more of your money when you work with us, guaranteed!

How long before I get my lump sum payment?

You can have your money in no time at all! After you get your quote, you will need to accept the offer in writing & provide a copy of your settlement agreement. A court will then review the terms of the agreement and offer. The company purchasing your structured settlement payments will handle the rest and get you your money quickly. On average, you can have your lump sum in approximately 60 - 90 days!

Is a structured settlement a good thing?

For some people it is a convenient arrangement, as they may not have a need to get all of the money at once. For others, a structured settlement can be a major inconvenience. Life is unpredictable, and over the years there may be an immediate need to have a larger sum of money to alleviate a financial crisis or take advantage of a new opportunity. It can be especially frustrating to know that you "have" money but don't have immediate access to that money.

What is a lump sum payment?

A lump sum payment is the term that's used when the full amount of money owed from a legal settlement, lottery winning or annuity is paid at one time.

When a lawsuit is settled or ruled upon by a judge in court, the payment to the plaintiff will often be made via a structured settlement - payments over a set period of time, often decades – rather than in a lump sum. The same can be true in the case of lottery payments.

What types of structured settlements can I sell for lump sum cash?

Maybe you hit the jackpot, but have to wait years for the full payout. You might be holding a mortgage note, deed of trust, annuity or other financial instrument that only pays you a little money over a long period of time. Or you might have won a structured settlement in a lawsuit, but that doesn't help you solve your immediate financial burdens. Lump sum payments can solve all of these problems.

Why should I choose lump sum or monthly payments?

For many people, a large ruling of money due to them in a settlement is directly related to a personal or professional hardship. Whether the settlement results from an injury due to the negligence of a business, medical malpractice or another type of hardship, there is often a need for a lump sum of money in order to pay medical bills or keep up a basic standard of living.

For lottery winners, a structured settlement lump sum allows the use of the funds that they have won immediately, so that they can start reaping the benefits of their winnings now.

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Other Resources

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