Nonflexible Structured Settlement Annuities Can Throw A Spoke In Your Wheels, But Annuitants Have A Sporting Chance With A Lump Sum

The fundamental law of science posits that every action has an equal and opposite reaction. But the magnitude of our actions or omissions doesn’t have to be forceful to be actionable in a personal injury lawsuit. In the world of negligence, you have to make your omelet without breaking eggs. In fact, inflicting personal injury on another person is equivalent to making a rod for your own back. The law has evolved to reflect the needs of vulnerable or frail tort victims giving rise to the “eggshell skull rule.” The eggshell skull rule provides that you will be liable for all injuries you inflict, even if the tort victim was exceedingly fragile and thus prone to greater unforeseeable harm. For instance, if you cut a person with hypersensitivity towards infection leading to his death, you’ll be guilty although it was not within the realms of possibility he may die.

In June 1999, Roy Nguyen was driving his car along a busy highway in Manhattan when he clashed with the defendant’s car. Though he emerged from the brief ordeal without a scratch, the accident set off post-traumatic trauma which had remitted since he was ten years. In a successful tort claim, he obtained a settlement against the defendant for psychiatric harm with average monthly payments of $1000 and six lump sum annuities. His attorney was confident Roy would be on an even financial keel with periodic payment of his money, but after several cashouts, he felt frustrated and inconvenienced by an inflexible financial kitty. He had to sell a proportion of the future income stream, but this is not like cashing out a lottery award.

Sell Structured Settlement

What is the Subject Matter When Selling Your Structured Settlement?

We always say you sell your structured settlement, but this is not the case. Roy was not seeking to transfer the annuity itself but only vested payment rights. The defendant insurance company (the obligor) finances the compensation kitty and continues to own the annuity while Roy’s gets rights to receive payment. The obligor cannot sell the annuity to avoid exposing investment portfolio to the tax man’s ax.

The obligor was an interested party; Roy sought consent before the matter came up for hearing in court. The court examines the documentation for notices and any objections from the annuity issuer and obligor in addition to the so-called “best interest” threshold test.

How Much Did Roy Make?

Roy only sold part of his structured settlement payments; he earned a lump-sum award that was slightly less than their total value. He received a proportion of the future payments in today’s discounted value (factoring in processing costs and profits. The discount rate allowed him to get a lump-sum yield retrieved from the future annuities in return for the purchase price equivalent to the apportioned income stream.

Did He Skip Court Hearing, Is Attendance Mandatory for Payees?

In the US, the model, Structured Settlement Protection Acts, adopted by state legislatures require the sale to be approved by a court in line with the payee’s “best interest” litmus test. The buyer informed him of the hearing date; however, he need not attend if he wished. Attorneys deployed by the company that bought his annuities represented him by placing evidence regarding funds for psychiatric treatment, mortgage, school fees, and increasing expenses.

When Did Roy Cash Out His Lump Sum?

One month after the court approved his transaction, Roy received a closing book capturing vital documents and information. He reviewed a copy of a certified court order and relevant paperwork, annuity issuer’s acknowledgment note, and agreement. Afterward, he forwarded the documents and funding instructions, the deal was consummated and the lump-sum payment disbursed.

5-Star Rated & Most Favored Structured Settlement Companies

Woodbridge Structured Funding

A reliable factoring company incorporated two decades ago, Woodbridge Structured Funding relies on a resourceful network of financial experts to assess annuities, lottery payments, and structured settlements and give lump sum buyouts.

Stone Street Capital

With 10+years of expertise in buying structured settlement payments, annuities or lottery winnings, Stone Street Capital will create an agreement with fair terms and conditions, a lucrative price offer and speed up your application in court while you relax.

JG Wentworth

The industry’s dominant giant, Wentworth observes the standards and ethics of the National Structured Settlements Trade Association by guiding payees in preliminary considerations, employs a tailored discounting price and a cash advance offer for the most extreme circumstances.…