You may work with clients from time to time where they are awarded a structured settlement. This structured settlement basically is a stream of tax-free future payments. It is important that you understand the process and what it means for your clients, which is why making the call to our team at Settlement Funding Associates is so important. We can help you navigate the entire process and provide you with valuable information. Call us today to learn more.
Why Structured Settlements Feature Tax-Free Future Payments
In a civil lawsuit, when a defendant either agrees to settle a lawsuit or has a judgment against them for a significant amount of money, often this money is put into a structured settlement. This structured settlement usually provides steady payments of money to the plaintiff. These are tax-free future payments that are not taxed as income… as it is not income.
These tax-free future payments help to ensure that the plaintiff will have a secure financial future with these steady payouts. If a lump sum were to be paid, it is quite easy to have this money get spent on any number of things, jeopardizing the future financial security of the plaintiff. Having a structured settlement helps to avoid this overspending tendency, and instead provides for the financial security that is the goal of the settlement or judgment.
Get The Right Help to Set Up the Payments
Setting up a structured settlement isn’t terribly difficult, but there are still important aspects to keep in mind. This is where having the right help can make all the difference in how the final details come about. When you work with Settlement Funding Associates, we can walk you through the steps to help get your client the right structured settlement to provide them with the tax-free future payments that will satisfy them as well as the defendants.
Our team has helped other professionals like yourself in Fort Lee, Roseland, Cherry Hill, Hackensack, Jersey City, and the surrounding areas. We can walk you through the different types of structured settlements so that you and your client are satisfied with the results. Call us today to put our team to work with your structured settlement needs.