Can You Take Out Part Of A Structure Settlement?
Sometimes people are under the assumption that when looking to sell your structured settlement you are required to sell it all. This is not the case.
You have the option to sell or take out part of a structured settlement and are not required to cash out the entire annuity if you choose.
While this would reduce the amount you receive for scheduled payments, for some this is the right option as it will still provides an income stream while also providing a lump sum of cash for other purposes.
Should you choose at a later date, you have the option to sell a portion or all of your settlement as well. While every situation is unique, there is one matter that doesn't change, and that is the fact that your annuity settlement depreciates. It's important to understand the benefits of why you might sell your annuity settlement, and the advantages that it can offer you.
To explain as simply as possible, the time value of money suggests your settlement is not worth what it once was. As an example, consider a sum like ten thousand about 20 years ago. That would have possibly bought you an inexpensive car at the time. But the same amount won't get you the same purchase today.
Inflation makes your settlement worth less, and the longer you wait, the less its worth.