Cashing Out Your Structured Settlement
It is best to first understand what structured settlements are. When a person files a claim for compensation and the defendant feels that they are on a losing end, they work out a structured settlement. This means, the defendant will pay the claimant in installments for a period of time until the agreed amount is paid in full instead of paying a lump sum amount of cash. Now, time may come that the claimant may need a lump sum of money instead of the annuity payments. The common choice for most recipients or claimants is to cash out structured settlements. Meaning to say, they are selling their rights to their structured settlement to a third party. They are either individuals or companies interested in buying your structured settlement payments.
However, you need to understand that when you cash out a structured settlement, you don’t get the same amount as the whole value of your structured settlement. Fees and taxes are being deducted from the remaining amount in your structured settlement payment. You may want to consider if it will be beneficial for you to sell your remaining payments. Remember you get lesser than the real or remaining value of your annuity payments, so if you decide to sell it still make sure to choose the one that gives the highest bid.