What You need to Know about Structured Settlements

SAN ANTONIO - March 15, 2017 - PRLog -- Per Bruce Myles, owner and founder of Proactive Commercial Lending Group, LLC,"a Texas Commercial Lender,"Many personal injury cases result in the plaintiff receiving compensation. While the amounts vary, usually there is an option to take a lump sum or to enter into a structured settlement.
Plaintiffs might receive compensatory and/or punitive damage rewards from a court of law. When this happens, the defendant is under court order to pay the plaintiff. So, you can opt to receive a lump sum or go with a structured settlement. But you should know what the latter means.

Here's what you need to know about structured settlements:

1. A structured settlement provides a steady income stream. The most attractive aspect of choosing a structured settlement is that you receive, regular payments. That provides peace of mind for most people. But, there are instances when it's not as advantageous.

? The payments from a structured settlement are mostly tax free. Another benefit to receiving a structured settlement is the payments are mostly tax free. A lump sum payment is considered income by the IRS, and is therefore taxed. However, structured settlements come through a third-party entity and investment, which usually means no taxes.

2. Structured settlement contracts provide flexibility before finalized. A particularly attractive benefit to receiving a structured settlement is the ability to get regular payments of equal amounts. Or, choose to receive periodic lump sum payments over a given schedule.

3. Payments from a structured settlements are fixed, not adjusting for inflation. Regardless of what you choose, the cost of living, known as inflation, increases yearly. Structured settlements do not adjust for inflation. In other words, you won't receive a COLA (Cost of Living Adjustment).

4. The plaintiff receiving a structured settlement is allowed to sell it for a lump sum. If a structured settlement becomes too difficult to deal with, you can always sell it off for a lump sum.

As you can see, there's a lot to consider about receiving a structured settlement. So, it's best to get helpful advice to make the right decision.

Proactive Commercial Lending Group, LLC was formed back in 2003 by Bruce Myles with the thought that many good, hard working business owners were not getting the Banking Services they needed to survive,  maintain and grow their business. This was due to the restrictions on banks (FDIC) or banks not willing to take a chance on their own customers and communities (or Lazy Loan Officers)!!For help getting Texas commercial loans, contact http://www.proactivelendinggroup.com

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