Annuity payment refers to a fixed amount of money paid in installments over a specified period of time. Annuities are used when individuals enter into structured settlements. Annuity payment schemes are governed by the 2002 Structured Protection Act. At present, 46 US states adhere to established guidelines, Factoring that regulate the sale or transfer of future annuity payments.
Annuities paid by structured settlement are guaranteed by insurance companies. Payments may be structured to provide sufficient funds to the injured parties for living expenses and medical care.
Annuity payments can range from a few years to a lifetime. Some structured settlements are designed to provide payments to beneficiaries of annuitants such as their surviving spouse or children. Annuities paid for injury compensation are exempt from federal and state tax.
Annuity payments can be a smart financial option for winners of the jackpot lottery. When individuals win mega-million lotteries, they can choose to take the lump sum cash prizes or annual installments. Winners who choose to pay lottery winnings in the form of annuity payments will receive more money under the program. long term.
Those who have the chance to win Powerball and Lotto State plans should consult a tax attorney to determine which payment is best suited to their long-term financial goals. There is great flexibility when structured settlements are established, but once in place, they can not be changed without the court's approval. Annuitants may be authorized to sell future annuity payments to a source of financing by allocating payment entitlements.
Annuitants may not request advance payment of benefits, withdraw funds from their account or use annuity payments as collateral. The sale of structured settlements must be authorized by the court and the annuitants must provide evidence of how the sale will improve their lives. Since regulations are often established to provide financial assistance to people who have sustained serious injuries, on the sale of future payments. The transfer of structured payments to factoring companies is a complex issue that should be handled by a qualified attorney.
Many states prohibit the sale of annuity payments. As a result, annuitants must determine whether the sale of structured settlements is legal before locating a source of financing. Those who are authorized to sell future annuities must exercise due diligence to ensure that they are working with a reputable financing source or annuity broker that is well versed in the structured settlement law.
Source by Simon Volkov: http://ezinearticles.com/expert/Simon_Volkov/169899
