Article provided by: WePayMore Funding LLC
WePayMore Funding offers the kind of structured settlement funding TX residents have come to rely on to resolve claims. The tax-free funding is tailored to meet the specific needs of claimants. Although some of the most common candidates for structured settlements remain, personal injury victims, it may also apply to wrongful termination, copyright infringement, and construction defects.
When does structured settlement apply?
A structured settlement is one of the perfect tools for resolving disputes. It is often awarded to cover medical expenses, loss of earnings, and loss of consortium. The claims process usually contains various issues that can only be addressed by compensating the wronged party.
Structured settlements involve making periodic payments to a wronged person, which eliminates the need and risks of a lump-sum amount. The federal tax code regulates this means of dispute resolution.
An insurance company funds t
he payments to be made through a structured settlement. Structured payments are exempt from federal and state income taxes. In addition, taxes on capital gains, dividends, and interest do not apply to structured settlement payments.
Claimants look for three things in a structured settlement: Financial security, income, and tax benefits. However, the benefits of structured settlements extend beyond tax- free, periodic payments. The structured settlement recognizes the needs of the plaintiff for a prolonged period and, possibly, entire life.
WePayMore Funding understands tax laws and can advise clients on how they can benefit from their structured settlements with regard to the tax code. Structured settlements offer an incredibly reliable tool for resolving difficult claims. The payments help both the plaintiff and the defendant to resolve claims better than a lump sum.
Structured settlements offer people the options they need to resolve future costs and issues. Therefore, carriers can play an essential role in reviewing claims that may benefit from structured settlements.
Is a structured settlement the same as an annuity?
For a structured settlement to work, the defendant is required to an annuity from an insurance service provider. The primary role of the annuity is to transfer the obligation of payment from the defendant to the insurance carrier. It is more prudent to rely on the insurance company to make payments instead of relying on the financial stability of the defendant.
Plaintiffs have the option of choosing between lump-sum payments and structured settlements. Both methods have long-term tax implications.
Using and managing the settlement money
The plaintiff has the freedom to use the payments from the structured settlement any way he pleases. However, it is essential to consider your goals when planning for the money you receive through a structured settlement.
The plaintiff needs to determine if he has the skills to manage the sums of money awarded to him. Many people choose structured settlements because it minimizes the hassle of managing significant amounts of money.
WePayMore Funding helps clients manage the money they receive through a structured settlement. We can advise you on how best to manage and invest your money. Get the right advice. Call us today.
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