We Buy Structured Settlements

We Buy Structured Settlement Payments

What is a Structured Settlement?

A structured settlement is a legal settlement paid out as an annuity rather than in a lump sum, usually with certain tax advantages for the recipient and a savings for the payer.

More particularly, a personal injury victim (ie. someone injured in a car crash, workplace, through medical malpractice, product liability or as a result of the wrongful death of a loved one as well as many other examples) will often commence a court legal action against the alleged wrongdoer or wrongdoers. In the vast majority of cases, the legal proceedings settle prior to trial. There can be many reasons for settlement, expensive legal fees, complex liability issues, time, mental stress to name a few. Settlement can often consist of the defendant or defendant’s insurance company making a one-time lump sum payment to the personal injury victim. In other situations however, for example if the personal injury victim has sustained injuries that will result in damages occurring over many years, or in situations where the victim is a minor and it is unwise to award a large sum at such a young age, parties may decide to enter into a structured settlement.

A structured settlement is set up whereby the defendant or defendant’s insurance company makes a one-time lump sum payment to a third party “owner/obligor” who in turn uses the lump sum to buy an annuity paid by a life insurance company to the individual. The lump sum never ends up in the hands of the personal injury victim, but rather is paid to that person over many years into the future. The payment schedule is completely flexible in its creation, but becomes fixed and inflexible once set in place and can be either weekly, monthly, bimonthly, annually, periodic lump sums or a single lump sum way into the future, or a combination thereof. The goal is to create a payment stream that best addresses the future monetary needs of the personal injury victim.

A structured settlement can be either guaranteed (paid in any event of your death and passed onto a beneficiary designated by you) or life contingent (payments cease upon your death) or a combination of both.

Can I sell my Structured Settlement?

Yes, you can sell your Structured Settlement. State and Federal laws permit you to sell your structured settlement payment rights to funding companies such as Genex Capital provided a court order is obtained in accordance with Federal and relevant State Laws and a judge determines that such a transaction is in your best interests. Genex arranges the court application and process for you at no cost to you.

With some limitations, you can generally decide how much or little of the annuity payment rights you want to sell and keep. At Genex Capital we work with you to find the best solution that fits your financial needs.

If you do decide to sell, at closing you will receive a discounted present value lump sum payment that is also tax free. This amount will be negotiated and agreed upon by you prior to completing the court process.

Learn About the Process

Who Pays A Structured Settlement?

Structured settlements are paid by one or more life insurance companies called “annuity issuers”, usually very well rated and highly reputable. These are companies that many would consider household names. Life insurance companies in the US are highly regulated by the States so as to give peace of mind to the policyholders.

How do I know if I am Getting a Structured Settlement?

If you are receiving payments or will be receiving future payments pursuant to a fixed payment schedule, tax free, paid by a life insurance company (either by check or direct deposit) as a result of a personal injury sustained by you or a loved one, chances are you have a structured settlement.

what are the advantages of a Structured Settlement?

They provide income replacement or compensation for ongoing injuries over a long period of time.
The life insurance companies are State regulated to protect against default. Should an issuer become insolvent, State Guaranty Associations are obligated to step in and make payments up to a limit.
All payments are tax free.
Payments may, in some cases, be protected from bankruptcy and spousal claim upon a divorce.

what are the disadvantages of a Structured Settlement?

Payments are inflexible & may no longer address the financial needs of the person. Maybe injuries have healed & now you want to buy a house, buy a car, go back to school, pay for an expensive medical procedure, get out of debt, or provide financial assistance to a loved one.
The annuity may have been inherited & the beneficiary does not need the payment stream but would rather have a present value lump sum cash in hand now.
Payments may be so far out into the future that you may not be around to receive them.

Restrictions On Sale

Please note that some restrictions may limit your ability to sell structured settlement payment rights. These include but are not limited to:

Your settlement is as a result of a workplace, workers compensation injury. It is not legal for you to sell a workers' compensation annuity in any State.
You must be age of majority; no minors can sell.
You must be of sound mind
If you were a minor at the time of the settlement but you are over 18 years old now, you must consult the original settlement agreement and court order to determine if there are assignment restrictions.
If the settlement is held by a trust for your benefit, there may be restrictions disallowing the trustee to sell on your behalf.
Some States have highly restrictive discount rate limits (ie North Carolina)
If a judge hearing your case does not believe the sale is in your best interest, then he or she has complete discretion to deny the case.

Laws & Structured Settlements

Some of the laws that govern the sale of a structured settlement include these:

s. 104 (a) (2) of the Internal Revenue Code states that the amount of any damages received whether by suit or agreement, whether lump sum or periodic payments, on account of personal physical injuries or sickness is not considered taxable.
s. 130 of the Internal Revenue Code provides that any amount received for agreeing to a qualified assignment (structured settlement process) shall not be included in gross income to the extent that such amount does not exceed the aggregate cost of any qualified funding assets.
s. 5891 of the Internal Revenue Code sets out the acceptable court ordered transfer process so as to allow proceeds of the sale to also remain tax exempt.
Additionally, state transfer statutes apply to the transfer process. You should consult the statute of the State in which you reside and/or the State in which you obtained your original settlement.