Many unfortunate situations put us in jeopardy such as the auto accidents. Most of the times we do not know how to handle such situations and the best way in such cases is to approach a professional lawyer. These lawyers would help us come out of legal problems especially when it comes to a lawsuit. If you are a victim of an accident and entitled for a large recovery, you can opt for the structured car accident settlement. This is nothing but a party agreeing to pay that money in installments rather than in one single payment.
Usually these payments are large settlements and that is why the parties choose to pay it either monthly, quarterly, half-yearly or yearly. A professional lawyer would help you understand the various benefits of car accident settlement. You can reduce the tax liability in many cases. However, some settlements usually are tax free. With these installments you are also sure that there is fixed income for the coming few months. There is always a risk of spending the entire money unnecessarily if you receive it in a lump sum and you would not have the money when you need it.
A structured car accident settlement also helps in financing the medical equipment or further treatment if any in future. It entirely depends on how you want the payments to be. There are people who do not wish to opt for structured settlements because of various reasons. They might want to invest that lump sum amount or they might not be interested in waiting for a long period to get the coverage. There are other options to this as well. You would find potential settlement buyers. Ask your lawyer for help on how a potential purchaser can approach you.
The process is called sale of settlement. A lot of things have to be considered while you sell your settlement. It is not easy in many states. Certain state laws do not permit you to sell your car accident settlement until and unless the local court or jurisdiction approves such a sale. A lot of disclosures both legally and financially have to be made. The seller has to give all such disclosures before any further transaction happens with the buyer. Here the purchaser might also be subject to excise tax which might go up to 40% in case of non-compliance to state laws. These laws are devised to protect the owners from fraud or abuse and also help the owners get fair price.